C27718 - Tackling food surplus at the farm gate

The purpose of funding is to progress the following objectives:

This grant scheme will be open for applications from the not-for-profit food redistribution sector, the purpose of the grant funding is to increase their capability and capacity to take on farm food surplus. The Waste and Resources Action Programme (WRAP) estimates the total amount of edible food (surplus and waste) on UK farms potentially suitable for redistribution is approx. 330,000 tonnes per annum WRAP-Surplus-food-redistribution-in-the-UK-2015-to-2021_0.pdf. The aim is to provide grants to move this surplus up the waste hierarchy from animal feed and disposal, including Anaerobic Digestion, into redistribution for human consumption. It will do this by:

- Increasing the capability and capacity of the food redistribution sector through grants for on farm pick-up into the food redistribution network. This could include purchase or leasing of loaders/vehicles and personnel to organise and arrange the activity.

- Assisting with farmer decision making in line with the waste hierarchy by following the food waste reduction roadmap and Target Measure Act.

Background:

The food redistribution sector includes charitable organisations as well as commercial organisations for instance Company Shop. The sector has different business models. FareShare for instance raise funds through a membership scheme as well as donations from retailers while others operate in a donation and volunteering capacity (His Church). Company Shop take surplus products and give a return to their supply chain partners.

The food redistribution sector has been growing rapidly in recent years aided by government grants to increase its capacity and capability through funding vehicles, fridges and other infrastructure including a dedicated warehouse operation.

The total amount of surplus food redistributed in the UK in 2023 was over 191,000 tonnes, this has a value of around £764 million, and is the equivalent of over 456 million meals. It is an increase of 15% since 2022.  

FareShare, along with the wider food redistribution sector, led a campaign for funds to support getting more surplus food from farms to their clients, rather than farmers sending food to animal feed, anaerobic digestion or ploughed back in. This follows similar campaigns that previously led to a £15m Defra fund from the Resources and Waste budget in 2018. 

Food surplus redistributors typically collect/purchase surplus food from the supply chain to offer their clients a discounted or free food offer.   

WRAP estimate circa 330,000 tonnes of surplus food from farms would be suitable for redistribution without costly processing (i.e. redistributing finished goods like carrots rather than surplus wheat for breadmaking). This grant scheme aims to help address this.

Policy have been asked to evaluate the previous project to ensure outcomes are used to inform this requirement. 

The customer has researched opportunities to collaborate with other government departments and established that no OGD are involved in the surplus food redistribution sector. DWP may be able to support this but they have not been approached for funding due to resource restraints within the policy team.

1.1         Requirement 

Nature of Surplus in scope 

The Waste and Resources Action Programme (WRAP), in their redistribution progress report 202[1], estimate the availability of pre farm gate edible food to be in the region of 330,000t. The Tackling Surplus Food at the Farm Gate project will address reduction of pre farm gate food surplus that is otherwise converted to animal feed or subjected to disposal. Redistribution into the NFP sector of this food will make it available for human consumption.

Applications will need to explore how much additional Surplus they would  redistribute and the increase in the capability to redistribute they expect and the costs for that work.

Surplus food should be from farms that are geographically located in England only. Surplus food is likely be from the horticultural sector as costs relating to processing would prohibit inclusion of wheat/barley etc. although they remain in scope.

Costs associated with processing, such as juicing/blending are not in scope, although specific costs relating repacking will be. Surplus will need to conform to food safety controls, in accordance with Food Standards Agency rules.

To avoid commercialisation of Surplus, the grant will require applicants to pick up food from farms for free by the not-for-profit (NFP) redistributor for consumption by an end user.

NFP organisations that redistribute Surplus food to charities for a discounted or free food offer are in scope for this Project. Initial Due Diligence checks will be carried out by Defra, and any applications from non-eligible applicants will be rejected.

Applicants must be from NFP but can utilise the commercial sector to deliver the outcomes. Redistributors working in partnership would be in scope to enable large redistributors to work with small redistributors at a local level.

Grants to farmers are considered out of scope. Previously the Farming Investment Fund (FIF) including the Farming Equipment and Technology Fund and larger grants including the Adding Value grants provided grant awards for actions that could utilise Surplus and aid farmers to drive down Surplus. For instance, the Adding Value grant, supported investment in equipment for preparing or processing edible agricultural products that could support added value sales, as well as equipment for ‘second stage’ processing of grain. Similar grants are now available (ADOPT scheme) although details as of this date are unavailable.

Commercial organisations are out of scope as this is their usual business, therefore do not require capacity building.  It is the capacity and capability of the food redistribution sector that requires expansion to enable them to take the opportunity to use the Surplus that the commercial sector does not want or need and has been estimated by WRAP to be available to access.

Objectives of this Project

The amount of food Surplus on farm going to redistribution would increase during and beyond the funding period, by increasing the capacity and capability of redistributors through:

•        New partnerships fostered between redistributors and farms.

•        New business systems and ways of working created, bringing redistributors closer to farmers.

•        Infrastructure including bulk handling infrastructure solutions.

•        Learnings and best practices for the future.

What the grants will cover:

Applicants will be required to have credible plans to form relationships with farmers to access the Surplus. The funds are likely to support relationships, working to enable large food redistributors to work with small redistributors at a local level, utilising the large redistributors’ distribution and storage networks and contacts while bringing in localised redistributors.

Personnel to manage the distribution needed to deliver the objective would be in scope, along with personnel to move the Surplus from farm to vehicles and personnel to continue the harvest once the commercial pick has been completed.

There may also be a need for improvement in information provision and logistics to facilitate faster logistics. This will overcome the barrier that stakeholders note of the short life and specific requirements of food for human consumption.