Evaluating the potential of circular food waste management : A focus on insect feed utilization

Abstract: Approximately a third of all food produced globally is thrown away, causing both unnecessary environmental impact and unnecessary costs for producers and consumers. Food waste occurs in all steps in the supply chain, from primary production to retail stores, restaurants, and households. In Sweden, the most common treatments for food waste are biogas or incineration. However, these processes are located relatively far down the waste hierarchy. Therefore, alternative food waste management processes such as using food waste as feed would purposely be more efficient and enable a more circular food value chain. Using food waste as feed to insects has shown great potential and could reduce the environmental impact of the food value chain. Several previous studies have assessed the feasibility of using food waste as feed for insects. However, in order to actually implement it, it also needs to be economically feasible for all involved stakeholders in the value chain. Therefore, the aim of the report was to evaluate the feasibility of implementing a circular food waste management system through the utilization of food waste as feed for insects, with a focus on the economic aspect. The study’s method was mainly based on a Stakeholder Opinion Assessment, where relevant stakeholders along a potential value chain using food waste as feed to insects were consulted. Based on the interviews, the feasibility of implementing circular business models through the utilization of food waste as feed for insects was assessed. This was done by identifying drivers and barriers to implementing circular business models for each stakeholder, as well as by developing a circular business model canvas for a central stakeholder. Key stakeholders in a potential value chain enabling using food waste as feed to insects were identified as waste management companies, insect producers, feed producers, animal producers, and food industries. Insect producers were identified as a central stakeholder. Several drivers and barriers for implementing more circular business models using food waste as feed for insects were identified for these stakeholders. The largest driver was the organizational driver, as there was a large sustainability motivation amongst most actors to contribute to a more circular food value chain and provide a more sustainable protein production for feed or food. For several stakeholders, legislation was identified as a large barrier since it is considered complicated, hard to interpret, and not made for a circular industry. Another large barrier for almost all stakeholders was identified as the financial factor. Many actors considered the price of the product or service to be significant, and a large investment cost would be needed for some stakeholders. The developed circular business model canvas showed for instance that insect producers could provide different value propositions to different customer segments; a more sustainable food waste treatment to municipalities or food industries, or providing an alternative protein to customers or farmers. Several internal and external adoption factors can also support the transition toward the circular business model. For instance, to enable economic feasibility, automation is significant, as well as potentially a large-scale production, or a mix between large and small-scale production. Lastly, using food waste as feed to insects could be a significant part of the circular economy by closing the loop of the food value chain. However, preventing food waste should always be the highest priority. Future studies should investigate the potential risks associated with different substrates found in household food waste, as well as explore the potential impact on flavor in farmed animals due to insect-based feed. Moreover, interviewing more stakeholders would enhance generalizability.