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Multi-criteria assessment of the viability of valorising vegetable by-products from the distribution as secondary raw material for animal feed

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Abstract

Approximately 33% of food produced around the world is wasted. In the distribution sector, erroneous orders or demand predictions result in products that cannot be sold before the expiration date. Despite its enormous potential, a low percentage of this food wastage is valorised causing negative social, economic and environmental impacts. Vegetable food waste has potential as raw material for animal feed. However, the profitability of its valorisation depends on several key factors and there is a risk of underestimating any of them making this valorisation technically, economically or environmentally unfeasible. Moreover, the geographical dispersion requires selecting the appropriate location for the processing plant and optimising the logistics routes to collect and transport them from the origin points to the processing plant. GISWASTE tool, which combines Analytic Hierarchy Process (AHP) method with ArcGIS, has been used to simulate the viability of this valorisation alternative from a holistic point of view. In addition, a sensitivity analysis in the economic modelling has been carried out to determine the economic viability factors with more influence in the global profitability. The valorisation of vegetable food waste from distribution and retailing sector for animal feed has been considered feasible in the case study region: Basque Country (Spain). However, there are some economic uncertainties for the return of the investment. The variable with more influence over the profitability is by far the incomes from waste management (81.4%).

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Abbreviations

AHP:

analytic hierarchy process

BCA:

benefit-cost analysis

EAA:

European Environment Agency

EBB:

European Environmental Bureau

EBITDA:

Earnings Before Interests, Taxes, Depreciations and Amortizations

EFFPA:

European Former Foodstuff Processors Association

ESRI:

Environmental Systems Research Institute

FAO:

Food and Agriculture Organization of United Nations

FCI:

fixed capital investment

GHG:

greenhouse gases

GIS:

geographic information system

IPCC:

Intergovernmental Panel on Climate Change

IRR:

internal return rate

LCA:

life cycle analysis

MCDA:

Multi-criteria decision analysis

NPV:

net present value

PBT:

payback period time

VBA:

Visual Basic for Applications

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Acknowledgements

This paper is contribution n° 1008 from AZTI, Food Research, Basque Research and Technology Alliance (BRTA).

Funding

The main funding of this research has been provided by EU LIFE+ Programme under Environment Policy & Governance (LIFE I2 ENV/ES/000406) and Basque Government.

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Authors

Contributions

D.S.M conceived the presented idea and contributed to the original draft preparation and writing, review and editing. L.A.V. and J.Z. performed the data collection of the scenario under study. D.S.M., M.O. and B.I. focused on technical and economic assessment, as well as on the sensitive analysis. S.R. carried out the environmental assessment. N.G. and A.G.S conducted the geographical assessment. E.M. programmed the tool. All authors discussed the results and contributed to the final manuscript.

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Correspondence to David San Martin.

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San Martin, D., Orive, M., Martínez, E. et al. Multi-criteria assessment of the viability of valorising vegetable by-products from the distribution as secondary raw material for animal feed. Environ Sci Pollut Res 28, 15716–15730 (2021). https://doi.org/10.1007/s11356-020-11752-6

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