Manufacturing high-quality feed from food waste to create a ‘loop of recycling’, as the practice which contributes the achievement of SDGs, especially Goal 12.

#SDGAction42698

Description

Intro

JAPAN FOOD ECOLOGY CENTER, INC (J.FEC) tries solving two social problems. One of the problems is about waste disposal. Currently, in Japan, a half of the waste burning in incinerators of each local government is food. To reduce incinerate waste costs, it is necessary to reduce and recycle the food waste. And the other is about Japanese livestock farming. In Japan, animal husbandry depends on the import of feed from overseas, and its cost has risen year by year. To solve these problems, J.FEC manufactures high-quality and low-cost feed from food waste and supply it for pig farmers.

Objective of the practice

For humans, "food" is one of the most important themes. However, when producing food production activities, food waste will inevitably be discharged. The business model of recycling this food waste is indispensable for solving hunger and waste problems. 
J.FEC works on reducing food waste （about 28.42 million tons annually in Japan） by the method of manufacturing feed from food materials, with the corporate philosophy of "make new value to food-loss". We contribute to achieving “sustainable consumption and production patterns" through effective utilization of resources and reduction of processing costs. This is exactly what is shown in target 12.3 or 12.5. 
J. FEC has a business model that has excellent continuity and economic rationality that it is a waste disposer but also a feed maker and is working to reduce waste and build a sustainable society. 
J.FEC produces the liquid fermented ‘eco-feed’ (animal feed produced from recycled food waste). Since this feed has little greenhouse gas generated during the manufacturing process, we will restrain the impact of livestock on climate change and improve sustainability as an industry. 
We improve the feed self-sufficiency rate by producing high-quality feed from domestic food residues and substituting for imported feed. We also contribute to food security through livestock management that is hardly affected by grain prices. 
Furthermore, we will establish a ‘loop of recycling’ that has economic rationality through partnership with pig farmers, manufacturing companies, retailers, consumers and other stakeholders to realize a sustainable society. Moreover, we act to the employment of the elderly and disabled people, partnership with work support facility, consideration of work life balance, will balance economic growth, workplace and healthy life, promoting "Decent work".

Partners

To build a recycling loop with economic rationality, it is essential to partner with stakeholders such as pig farmers, manufacturing companies, retailers and consumers. This partnership establishes a cycle in which food waste generated from food-related businesses is converted into feed, pigs raised by the feed are sold again by food-related business operators and purchased by consumers.
By focusing on forming sales channels for livestock products by branding, we have established ‘loop of recycling’ involving each stakeholder and contribute to building a sustainable society.

Implementation of the Project/Activity

Japan Food Ecology Center, Inc. (J.FEC) produces the liquid fermented ‘eco-feed’ (animal feed produced from recycled food waste), and contracts 15 farmers to supply it. The food waste, received 35 tons/day as the ingredients of feed, is sorted to remove inappropriate materials, and shredded fine. After shredded, the food waste becomes liquid state. Then, through the processes of sterilization (at 80-90℃, 5-10 min.) and lactic acid fermentation (24-48 hours), the food waste transforms to ‘eco-feed’. The stock farm products with J.FEC’s eco-feed is processed into good quality meat and sold in department stores and supermarkets under the brand names Yu-ton (means ‘superior pork’) and Umakabuta (means ‘delicious, flavorful pork’).
By producing low-cost, high-quality feed and carrying it in an amount corresponding to the size of pig farmer, we offer options for producing high-value-added pork using our eco-feed for small and medium-sized pig farmers. This contributes to the support of diverse animal husbandry and improvement of feed self-sufficiency rate.
Also, we employ employees with disabilities inside the company. In addition, we actively engage in outsourcing to disabled people working support facilities and outsourcing to the elderly personnel center and contribute to the promotion of "Decent work" in the surrounding areas.
In addition, our president has served as president of a food recycling industry group, actively making policy recommendations and establishing an industry network to the country. Nowadays, reduction and effective utilization of food to be discarded has become a major issue both domestically and overseas. By spreading "loop recycling" that takes advantage of our know-how, taking the leadership in the food recycling industry, we are contributing to realize a sustainable society.

Results/Outputs/Impacts

In Japan, 800 billion yen is spent annually to incinerate food waste. Many of the expenses are covered by taxes.
Our business reduces food waste, processing costs and environmental impact of the waste. Furthermore, by linking with domestic livestock producers, improving feed self-sufficiency rate, promoting employment of people with disabilities and elderly people, we are leading to an integrated solution in each field through "recycle loop".
Since feed conversion can effectively utilize the nutritional value of food waste, it is regarded as the top priority in food recycling in Japan. We realized liquid eco-feed with stable quality and high preservability (around 2 weeks at room temperature) by our own feed-making technology. The price is about half of the general feed.
According to a research result, our liquid eco-feed reduces the greenhouse gas emitted in the manufacturing process by about 70%, compared to the case using ordinary (made from import grain) feed. And the cost of feed expenses is also reduced by about 50%.
In FY 2017, we used approximately 11,600 tons of food waste by using it as a raw material for feed. At the same time, we produced about 14,200 tons of feed, contributing to the improvement of feed self-sufficiency rate and cost reduction of pig farmers.
J.FEC's liquid feeding project has been highly regarded internationally because it eliminates complicated mechanisms on the facility side and can build at low cost. Many foreign officials, such as South African ambassadors, administrative officials, trainees from JICA, have come to visit.
The stock farm products with J.FEC’s eco-feed is processed into good quality meat and sold in department stores and supermarkets under the brand names Yu-ton and Umakabuta. The combined market size of the two brands is over 350 million yen/year. Consulting business related to food recycling that makes use of our know-how is also good.
As a result, we have achieved a surplus in all fiscal years since its establishment, and for fiscal year 2017 sales for the first time exceeded 300 million yen. In addition, in the same year we established Food Ecology Firm Co., Ltd. and started to manage pig farms.
As employment-related initiatives, we directly hire persons with disabilities. In addition, we actively engage in outsourcing to work support facility (average 120 hours / month) and outsourcing to the Silver Human Resource Center (average 100 hours / month) and contribute to the promotion of “Decent work" in the surrounding areas.

Enabling factors and constraints

As is well known overseas in the idea of "Mottainai", in Japan there is an aspect that empathy can be easily obtained in efforts to not waste resources. And by the idea that ‘food waste is, as well as paper and plastics, are resources’, the food recycling law was established in 2001 in Japan, the first in the world. In this way, it is a social issue to tackle the recycling of food and the consciousness that it is corporate social responsibility has expanded.
Under these circumstances, as a business office belonging to the group of Odakyu Electric Railway Co., Ltd., the factory which is the predecessor of J. FEC started operation in 2005. The technical adviser of the factory at that time was Koichi Takahashi （the president of J.FEC today）. He had envisioned a 'recycling loop' with food waste from a young age.
The purpose of this factory was to fulfill corporate social responsibility by establishing a recycle loop. At the same time, in collaboration with the retail industry within the Odakyu Group, we intended to sell livestock products that consumers demand, and enhance the attractiveness of the surrounding areas.
Since the capital of the Odakyu Group was used to set up the factory, it was possible to bear the initial cost such as land selection and equipment securing. This factory left the capital of the Odakyu Group in 2013 and became independent as J.FEC, but even now it keeps close ties with the development of the "Yu-ton" brand.
In addition, through the production of high-quality, low-cost feeds using proprietary technology and the securing of sales channels based on brand strategy, the merit for pig farmers of using our feed had occurred. Pig farmers contracting with us have a strong interest in advancing pig farming techniques and we are working on improving the quality of feed in cooperation with them.

Sustainability and replicability

In order to recycle food as a commercial business, economically rational methods are indispensable. The most important thing is to adopt a method suitable for that region.
One of the important reasons for making J.FEC's business possible is the amount of garbage disposal fee of surrounding municipalities.
In Japan, many food wastes are incinerated at the local government's disposal site, but many local governments around J.FEC require relatively high treatment costs. This treatment fee is often higher than the cost required by the business operator for food waste disposal fee by J.FEC.
Therefore, companies that emit food waste can reduce costs by using J. FEC food recycling. In other words, unless there is a merit in terms of cost in recycling, companies are forced to reluctant to recycle. Due to the characteristics of areas, our business has ensured economic rationality.
However, even if such conditions are not in place, there is a possibility that food recycling will be established economically. For example, there is a method of carrying on-site processing at a food factory where food waste is generated and directly conveying it to neighboring farms. We have taken advantage of our know-how and propose methods of food recycling that make use of the characteristics of various regions.

Conclusions

The special characteristic of J.FEC is to form a 'loop of recycling' through the effort to reduce waste, and to make new value with farmers, food manufacturers, retail, consumers and other stakeholders. This effort is expected to lead to improved feed self-sufficiency. J.FEC’s business model is even getting attention from around the world. 
With our belief in establishing a recycling loop, social and legal boost, financial stability, and partnership with stakeholders and technologies to manufacture feed, our efforts have earned high praise at home and abroad. And now, from the point of view of SDGs, food recycling has become even more important. J. FEC will continue to work on reducing waste, building a sustainable society, and creating human-friendly employment through the food recycling business.

Other sources of information

< J.FEC official home page >
http://www.japan-fec.co.jp/

< Japan SDGs Award > * Site of Ministry of Foreign Affairs of Japan
https://www.mofa.go.jp/policy/oda/sdgs/award/index.html

J.FEC is earned the best prize of Japan SDGs Award 2018.
https://www.mofa.go.jp/policy/oda/sdgs/pdf/result_of_the_2nd_sdgs_award…

Introduction of J.FEC’s practice （Japanese）
https://www.mofa.go.jp/mofaj/gaiko/oda/sdgs/pdf/award2_1_nihonfoodecolo…

< Workshop under G7 Collaborative Activities for SDGs >
J.FEC participated ‘The 1st Workshop under G7 Collaborative Activities for SDGs’ in 2017.
http://www.env.go.jp/en/earth/sdgs/g7_sdgs_1st.html

Koichi Takahashi, President, Japan Food Ecology Center, Inc. made a presentation titled “Creating a successful local food recycling loop” in Session 2 of the workshop.
http://www.env.go.jp/en/earth/sdgs/g7_sdgs_1st/session2_03.pdf

< High Level Political Forum on Sustainable Development (HLPF) >
https://sustainabledevelopment.un.org/hlpf/2017

Foreign Minister of Japan, Kishida, attended the United Nations HLPF held at United Nations Headquarters in New York on July 17, 2017. He introduced J.FEC’s initiatives as examples of efforts for solving social issues by companies using products and circulation systems related to food and food problems.
https://www.mofa.go.jp/ic/gic/page1e_000171.html

Koichi Takahashi, President, Japan Food Ecology Center, Inc. made a presentation at the side event titled “Asia-Pacific initiatives toward a sustainable future”.
https://sustainabledevelopment.un.org/index.php?page=view&type=20000&nr…

SDGS & Targets