Value-add to organic residues in food value chains: identifying high impact opportunities in a developing country context

Improving the resource efficiency of food production is a sustainability imperative. A range of organic residues may be generated along food value chains. Adding value to organic residues enables improved utilisation of... [ view full abstract ]

Improving the resource efficiency of food production is a sustainability imperative. A range of organic residues may be generated along food value chains. Adding value to organic residues enables improved utilisation of bio-based resources and, critical in a developing country context, provides potential opportunities for (new) business development and job creation.

A strategic scoping study has been done to identify potential for value-add to organic residues in food value chains in the Western Cape, a province of South Africa, with the view to identifying potentially high impact opportunities that could be unlocked through policy and practical interventions. The underlying goal is to enable the full economic development potential of bio-based resources to be realised in order to contribute to the accelerated development of a more sustainable regional economy.

The scoping study combined a quantitative assessment of residue streams with a qualitative assessment of value-add potential. The quantitative assessment involved a partial material materials flow analysis (MFA) focusing on products and residues.  The qualitative assessment identified and mapped the potential range of value-add products against a value add hierarchy – a heuristic guide that indicates the relative value-add of different products from organic residues. The scoping study covered agriculture (primary production) and agri-processing (secondary production), with some (but limited) consideration of food production (tertiary production) (e.g. baking, beverages).

A two stage screening process was used to identify those value chains and stages with highest potential. The first process considered quantity and value-add potential (from the quantitative and qualitative assessments, respectively), as well as evidence of availability and drivers/incentives, to produce an initial shortlist of value chains for further, more detailed consideration. The second process sought input from industry associations and relevant companies along the value chain, in order to obtain information on current use/availability, drivers, barriers, the potential business case, and appetite for alternatives (to disposal/current use). The final value chains and opportunities for consideration were selected based on a range of criteria that collectively cover ‘financial viability’ or ‘likelihood of being implemented’. This business-oriented approach to identifying opportunities is aimed at enabling practically realisable, rather than only theoretically feasible opportunities, to be identified so as to more rapidly enable the economic benefits of value-add to organic residues to be realised.

This paper details the methodology and results. In addition, it: (a) presents a high level assessment of potential barriers and (policy and practical) enablers for the realisation of value-add potential from organic residues food value chains; (b) reflects on the benefits and challenges of realising value-add opportunities in a developing country context; and (c) illustrates how an industrial ecology approach, combined with a business-oriented view, can provide insights for a broad range of developing country government and industry stakeholders. These insights can be used for policy development and business strategy, in order to realise the potential and accelerated development of a sustainable economy through the resource efficient utilisation of bio-based resources.