The Cool Chain Association called for closer cooperation from shippers and other industry stakeholders in order to reach its goal of a 10 percent reduction in global food waste by 2025 at its annual Perishables Summit in in Barcelona, Spain.
The Cool Chain Association (CCA) is aiming to reduce global food waste in temperature-controlled supply chains 10 percent by the year 2025.
The group called for closer cooperation from shippers and other industry stakeholders in order to reach its goal at its annual Perishables Summit in in Barcelona, Spain.
A 10 percent reduction in cold chain waste would represent 250,000 tons of cargoes like food, flowers and pharmaceuticals, an estimated $1 billion in value, and one million fewer tons of emissions including carbon dioxide (CO2) and other greenhouse gasses.
“Food wastage is a major issue and one which we must focus on as an industry,” said Sebastiaan Scholte, CCA chairman and CEO of Jan de Rijk Logistics. “Working together, we can find ways to fight back and make a difference, whilst at the same time adding value to the supply chain.”
CCA members at the conference predicted that the airfreight market will remain strong for perishable goods despite some shippers shifting to ocean.
Although ocean carriers are cutting into air carrier market share, several shippers who have made the move have already switched back to air, said Janet M. Coldebella, business development manager of the Fresh, Americas segment of Air France-KLM-Martinair Cargo.
“Transit times are still too long to guarantee the quality and shelf life that retailers demand,” said Coldebella. “Cost is important, with retailers focused on shelf life, but there is a new generation of consumers who want fresh, seasonal produce and they are prepared to pay more.”
WorldACD Director Ken de Witt Hamer noted that although 80 percent of perishable food cargoes worldwide are currently imported by developed countries, income and population growth in countries like India and China could lead to increased demand in emerging economies.
“PER (perishable) products by air showed much higher growth than the overall cargo market in 2015, and we see this trend continuing in 2016,” he said. “Future food demand may increase food sourcing outside Asia for Asian countries, given more competition for land use, increased demand and challenges for water.”
“South Korea is the leading country leasing agricultural land in other countries for own food sourcing,” he added. “But it is likely that India and China will increase food outsourcing in the future.”