Funded project – Whole Crop Purchasing
Demonstrating models of Whole Crop Purchasing by securing a local supply of produce for social procurement.
Background
Whole Crop Purchasing reduces on-farm food waste by buyers committing to purchase an entire crop from a producer. It benefits buyers with value for money and supply chain control, and producers with a secure market that reduces waste.
Whole Crop Purchasing has been practised elsewhere in the world, however, there is no comprehensive model in operation in Victoria. Open Food Network pilot project focuses on securing a local supply of produce for social procurement through Whole Crop Purchasing practices.
Farmer Incubator is a Victorian social enterprise, supporting young farmers to develop their skills, knowledge, and access to land. Farmer Incubator is a producer participant in this project. Their contribution also provides a framework that can help new farmers develop sound sales channels to achieve financial viability and embed food waste reduction farming practices.
Objectives
The objective of the project was to reduce food waste by implementing strategies and practices that minimise the amount of food wasted at various stages of the supply chain, from production to consumption. This involves raising awareness about the environmental and social impacts of food waste and promoting actions to reduce it.
Process
- The project team did research to explore global best practices and understand the specific dynamics of local commodities. This involved reviewing case studies and initiatives from around the world to gain insights into the key principles, strategies, and challenges associated with Whole Crop Purchasing.
- To ensure the success of the Whole Crop Purchasing program, it was essential to develop the necessary resources and establish strategic partnerships. These partnerships enabled collaboration, knowledge sharing, and resource pooling to collectively drive the adoption and expansion of Whole Crop Purchasing practices.
- In the co-design of the Memorandum of Understanding (MOU) Agreements between producers and buyers, production plans were developed to outline the specific activities and requirements for crops. This included detailed guidelines for planting, maintenance, harvest, transport, and delivery of the purchased produce.
- A comprehensive evaluation at the end of the project involved the assessment of the outcomes and impacts of the pilot Whole Crop Purchasing program. The final business case includes evaluation, analysing the financial viability, social and environmental benefits, and adaptability of the program.
Challenges
- Price: Even with strong values-alignment and matching of enterprise scale, price can be a barrier to a partnership proceeding. This was exemplified in an Open Food Network facilitated meeting for a prospective partnership between an organic market gardener and a value-adding food business.
- Enterprise scale: If the scale of the farming enterprise and buyer is not well-aligned, it can become a barrier in establishing a relationship. Finding a suitable farmer that was scale matched was challenging and did not always lead to establishing a direct relationship for the buyer.
- Labour shortages: Farmers suffered from long-term labour shortages resulting from the impact of COVID-19 regulations. One participating farmer had more on-farm food waste this season due to labour shortages.
- Risk sharing: The concept of risk-sharing was accepted and agreeable by both parties in one instance. The actual implementation in working towards improved risk sharing between farmer and buyer was challenging to incorporate into agreements.
Insights
There is an opportunity to leverage the growing interest in values-based procurement and draw on global examples of models that successfully engage small to medium farming enterprises.
Options for potential further investigation of brokering services and values-based procurement reducing the risk of on-farm food waste are as follows:
- Develop platforms for farmers to plan and forecast on-farm food waste, facilitating timely transactions and financial optimisation. Integrating technological solutions into product markets would streamline data collection and measure waste diversion impact.
- Brokering services to meet the needs of farmers and buyers, offering different levels of support. Combining technology and interpersonal relationships would enhance efficiency.
- Provide targeted support services for regenerative, young, and new farmers to maximise social and environmental benefits from trade.
By exploring these avenues there is potential to leverage public procurement, reduce on-farm food waste, and promote sustainable agriculture.
Outcomes and impacts
- Explored the role of governance and whole crop agreements in reducing on-farm food waste.
- Adapted non-binding MOU agreements to build trust and rapport between farmers and buyers, with an intent to move to a forward supply or contract of sale agreement.
- Successfully trialed a values-based brokering service, facilitating relationships and minimising the risk of on-farm food waste.
- The brokering service offered significant value to both farmers and buyers by establishing 25 individual relationships resulting in up to 4.195 tonnes of produce diverted from becoming food waste.
- The activities undertaken in this project demonstrated the potential to avoid 7.97 tonnes of greenhouse gas emissions.
- The project benefited multiple stakeholders including farming enterprises, social enterprises, and food businesses.
- Highlighted the potential for public good outcomes through shortened supply chains and circular economy initiatives contributed to a more resilient food system at the local, regional, and state level.
- The pilot study supported new and young farmers practicing regenerative farming.
From the grantee
Funding for further research and development projects is required in the social procurement sector to build capacity of both buyers and sellers to trade food that delivers environmental and social outcomes. The sector has significant potential to generate public good outcomes (waste minimisation being one) but needs targeted investment from government and philanthropy.
