Technology Against Hunger & Waste
Food Cowboy uses mobile technology to connect food companies with charities and composters so wholesome surplus food doesn’t go to waste. In so doing, we help feed 49 million hungry Americans, protect the environment, and help donors collect nearly $1 billion in special tax deductions.
Section
Slides
Overview
3 – 10
Analysis
11 – 16
Solutions
17 – 22
Next Steps
23 – 27
Food waste is a human, environmental and 3 economic problem that affects every community 60 million tons of food worth over $100 billion is wasted each year by retailers and consumers
49 million people, including 8.3 million children, were food insecure in 2012
28 percent of landfill volume is comprised of food waste, which generates methane, a potent greenhouse gas
Consumers spend twice as much to buy the food they waste as the government spends on food stamps
Food insecure people eat less fresh produce and experience higher rates of diabetes, hypertension and obesity
About Us Food Cowboy was founded by two brothers who have been rescuing fresh produce for over 20 years and an expert in nutrition, public policy and emergency food systems.
Roger Gordon—entrepreneur, former nonprofit executive director (Urban Solutions, San Francisco). MBA, Kellogg; JD Georgetown Barbara Cohen, PhD, MPH—nutrition and emergency food systems expert; author of USDA’s Community Food Security Toolkit (Top Ten download on USDA.gov) Richard Gordon—trucker, terminal manager, 25 years’ experience transporting fresh produce; FEMA responder to every major East Coast and Gulf Coast disaster since 1993 4
Our Advisors Robert Egger – founder, DC Central Kitchen and LA Kitchen Gen. Mike Mulqueen, USMC (Ret.) – former ED, Greater Chicago Food Depository Beth Johnson, MS, RD, founder, Food Directions; former EVP, Nat. Rest. Assn; Acting Under Sec. for Food Safety (USDA); senior staffer, Senate Comm. on Ag. Professors Peter Clarke and Susan Evans – University of Southern California Amy Dickie—senior associate, Calif. Environ. Assoc.; prev. with Investors’ Circle Kai Robertson – former head BSR Beverage & Agriculture advisory practice Arnaud Sahuguet, Ph.D. – Product Manager, Social Impact Team, Google Michael Virga – former exec. director, U.S. Composting Council
5
Coverage & Recognition
USDA Food Waste Innovation Expo
The USDA and EPA have invited Food Cowboy to help it plan the first-ever expo for innovative private sector food waste recovery and diversion solutions. Is your business doing something creative to reduce food waste? Do you know an innovative technology for growing, processing, distributing or selling food that could reduce waste? Let us know so we can tell the world.
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Food Cowboy focuses on recovering fresh food from the supply chain … All Food Waste Production & Processing 46%
Distribution & Retail Waste
Distrib. & Retail 11%
Fruits & Vegetables 62%
Consumer 43%
4 Billion Pounds/Year
• Higher value • More perishable • Larger lot sizes
• Healthier • Professionally handled • Already in transit
8
so it doesn’t end up in dumpsters and landfills …
9
1 0
“Food waste” means different things to different people To a business, waste is …
spending money on unsellable inventory To a charity, waste is …
throwing away wholesome food To an environmentalist, waste is …
throwing anything organic into a landfill To an accountant, waste is …
leaving tax benefits on the table To an economist, waste is …
needlessly consuming natural resources
But logistically, all food waste is caused by three factors …
Food is expensive to move. If transportation costs exceed market price, it can’t get to market
?
?
Transport or Not?
?
?
?
Food is risky. As food moves closer to market, the seller’s risk increases.
High
• • • • •
Damage Delays Price Changes Food Safety Theft
• Consumer Preferences • Channel Integrity • Legal Liability • Brand Exposure
Low Producers
Consumers 12
Food is about relationships Major Food Distribution Routes (USDA)
The supply chain is national so relationships are national
Food companies use technology to manage costs, risks and relationships. Charities don’t. Supply Chain Companies • Freight Management Systems (FMS) • Computerized Data Acquisition • Global Positioning Systems (GPS) • Radio Frequency ID (RFID) • Satellite Tracking • Trip Recorders • Remote Sensing Food Cowboy manages technology on behalf of charities so they can focus on their clients
Technology
Technology
• Electronic Data Interchange (EDI)
Food Charities • Little brand exposure • Insured or judgment proof • Established supply lines • No competition • Little money for technology
This logistics gap makes it difficult to donate fresh and prepared foods efficiently*
DONORS
CHARITIES
The gap is all about technology – donors use it but charities don’t
* More fresh produce is wasted in the supply chain in 19 days than is donated to charities in one year
Requirements of a large-scale food recovery system
• Must employ modern logistics technology – Charities must look and feel like real supply chain partners
• Must involve smaller charities and logistics partners – Maximizes efficiency and gets food closer to where it is needed
• Must offer solutions for disposing of organic waste – “Cherry-picking” too inefficient for high-speed supply chain
• Must work nationally and at scale – Efficiency requires 100% availability and significant throughput – Culture change requires enough participants to get past tipping point 16
Food Cowboy’s basic system: A tool for truckers who get stuck with “kicked” shipments ❸ Food Cowboy searches database and notifies the best/closest food charities through the app
❷ The trucker posts shipment and next destination on Food Cowboy
❶ A delivery is refused
❹ A food bank can accept, decline or route to agency ❺ Food Cowboy sends routing info to the trucker ❻ The charity confirms delivery ❼ Food Cowboy sends receipt and tax paperwork to the shipper
Food Cowboy charges food banks ten cents per pound for supply chain donations – less than half what they currently pay in shipping fees for produce donations
Real time donation and disposal solutions delivered in the cloud ‘Like Match.com for food waste’ – Modern Farmer DONORS
CHARITIES
Food Cowboy can also help supermarkets and restaurants donate fresh and prepared foods to local charities Donors’ Concerns Food Safety Scheduling Paperwork Reliability Capacity Brand Risk
Solutions Food Safety Tools Online Scheduling Menu Uploading Volunteer Tracking Performance Ratings Social Media Recognition
Food Cowboy helps build sustainable food systems by routing organics to their best users Growers
Warehouses
Processors Farmers
Schools Composters
Truckers Retailers
Food Charities
Processors Farmers
Packers Ports
Anaerobic Digesters
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Food Cowboy also helps donors access tax benefits that today often cost more than they are worth Food companies may deduct their costs plus ½ their “lost” profits when they donate inventory* Regular Donations
Food Donations
Profit
Enhanced Deduction Total Deduction
Situation Today Nearly $1 billion in special tax deductions go unused Efficiency losses prohibit making small donations High administrative costs (paperwork) Situation Tomorrow
Ordinary Deduction
Ordinary Deduction
(costs only)
(costs only)
Logistics tools reduce efficiency losses Online receipting and reporting reduce administrative costs *IRS Code §170(e)(3)(A)
Food Cowboy makes it more profitable to donate than to dump unmarketable inventory
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Next Step: The Great Food Roundup – A two-part “surge” to jump start a new solution to food waste
Companies don’t donate large amounts of food
Supply Chain Rescue Regional Pilots
So charities never develop significant capacity
Local Food Rescue
Crowdmapping Food Waste
Charities don’t have significant capacity, so … 23
Regional Supply Chain Recovery Pilots Supply chain recovery only works if enough companies participate. Sign up your food bank for a recovery pilot in your state or region and we’ll support you with logistics tools and a national corporate enrollment campaign.
Growers Manufacturers Distributors Wholesalers Transporters
Food Banks Food Pantries Composters Ranchers Biogas Generators
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Local Food Rescue A national campaign to crowdsource a food waste map of America
“Send us a tip about food waste and we’ll put it on the map so local charities can offer their services” Who else uses crowdmapping ?
What can you do with a
FOOD WASTE MAP? • Set up a food rescue route* • Send alerts about last-minute deals on expiring foods* • Invite in-store shoppers to carry donations to charities near their homes* • Develop a composting business* • Support businesses working to reduce local hunger * Working model already exists 26
Saddle Up! You can’t change the status quo working alone. So, if you care about hunger and waste, partner up with us so together we can help our neighbors.
If you do your part, we’ll do ours.
That’s the cowboy way.
[email protected] 800.673.6916
