Waste Not, Hunger Not: The Logistical Solution By: Olivia Reicks Food. It gives us energy, nutrients, enjoyment. We gather around tables every day to share it. However, over a billion tons are wasted every year. Families, children, neighbors go to bed hungry. The population is expected to increase to 9.6 billion by 2050. The time for change is now. The time for action is now. Global Statistics: - 4 billion metric tons produced - 33% wasted *53% of food loss: cereal crops *44% of food loss: undeveloped Sub-Saharan Africa: Share of Total Food Available that is Lost (%) nations Production Handling and Storage Distribution and Market Processing Consumption 7 5 39 13 37 The Link: The majority of food loss in developing countries occurs in the production and handling stages due to inefficient distribution systems. By offering third-party logistics (3PLs), more food will be available and distributed to those who need it most. “Food Price Watch.” (2014, Feb. 24). The World Bank Group. Issue 16. Retrieved from http://www.worldbank.org/content/dam/Worldbank/ document/Poverty%20documents/FPW%20Feb%202014%20final.pdf Impact of Food Loss: Increased greenhouse gas emissions Inefficient use of water, land and energy Higher food prices Reduced incomes Food + Innovation = Distribution My Action Plan Decrease food loss by adding value to the Supply Chain. Through enterprise acceleration, transportation efficiency will be created through third-party logistics. This will expand current geographic constraints of smallholder farmers in developing countries. Current Solution and Moving Forward PICS Bags (Purdue Improved Crop Storage) Hermetically sealed bag to stop insects infestation Able to store a variety of crops Reduces risk of theft by storing inside the home Low cost Easily stored/transported Reduces “feast and famine” Enables a more stable price for crops Moving Forward: How do we move away from surviving day-to-day to planning for the future? How do we give farmers the power to sell their crops at a market price? How do we improve the distribution of technology to rural areas? How do we prevent malnutrition in rural areas? The Answer: Third-Party Logistics Benefits Low capital commitment Increase time savings o Reduced labor o Focus on core competency Smallholder focus Results Expands geographic market constraints Promotes specialization and flexibility Reduces subsistence farming Reduces malnutrition The Logistical Solution Types of Providers (Truckers) Type 1 o Large buying firm pays for transportation o Farmer receives payment on pickup o Hauled in less-thantruckload Type 2 o Farmer pays for transportation o Sells to small market, individual farmer o Increases individual selling power Type 3: Moving market o 3PL purchases crop from farmer o Sells to other farmers along route o Delivers fertilizer, seed, etc. Implementation Efforts Technology advances in communication to relay market price information Access to financial capital Education and training for new drivers Support from cooperatives Equality on every level The economy Flourishing efficient economy Improved business ecosystem and market stability Food + Innovation = Distribution
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