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It is possible to balance sustainability and profitability in the food and beverage production chain

*By Waldir Bertolino

The awareness of the population, in line with the environmental impacts arising from the increase in production and the growing waste of food over the years (according to FAO, it is estimated that about 1.3 billion tons of food produced are lost every year; of this total, losses related to production, storage and transport deficiency represent 54%), encourage companies to rethink their current practices and seek more sustainable ways to manufacture and transport food and beverages.

For the coming years, it is expected that consumers will become more aware and brands more sustainable. As the food and beverage supply chain is not restricted to the national market, it is to be expected that ecological practices will spread throughout the global chain, so that more and more companies are aware of how sustainability will bring benefits to business. and for the planet in the long run. 

According to projections from IBGE, the Brazilian population will be approximately 232 million people in 2050, and, according to a survey carried out by the UN, the world population will be close to the mark of 9.7 billion people in the same period. Based on these data, the Food and Agriculture Organization of the United Nations (FAO) estimates that food production will have to increase by 61% to meet the demand in 2050. In this total, Brazil will have a share of 41% of production, in other words, the country will have to supply 620 million to 630 million tons of food per year.

With population growth comes an increase in production and, therefore, consumption. But in the current scenario, taking into account the impact that climate change has on crops and the long history of waste throughout the food supply chain (according to FAO, more than 30% from world production of food is lost each year between the post-harvest stages and the sale of inputs to the final consumer), it is clear that just increasing production is not the answer. 

The best way to resolve these issues is to work on sustainability across the sector, which is why there is pressure in the food and beverage industry for more sustainable positioning and actions. 

To balance the environmental footprint of industries with the idea of “sustainable profit” it is necessary to invest in innovation. With the right technology, applied correctly, it is possible to reduce waste and increase operational efficiency simultaneously, promoting a food and beverage market that is profitable and sustainable. 

Sustainability as a priority 

The importance of sustainability was only really realized when the economy took a swing. The increase in energy prices has made companies need to move to seek alternative solutions to reduce costs. It was at this point that energy efficiency became a priority. 

In recent years, sustainability has appeared at the top of the list of priorities for the food and beverage industry, because, in addition to the concern of companies with increasing production costs, consumers have considered the ecological footprint of brands when choosing products. products for purchase. 

This change in the vision of the industries, which are now looking for more sustainable and economical alternatives for their businesses, has become a watershed in the market, and those that do not understand the importance of conserving the environment and do not adhere to the modernization of the chain will be left behind.

Sustainability as a growth driver

Not only do consumers and the market see companies that are adept at sustainability with different eyes, but also investors and employees. Concern for the environment is just the starting point for becoming a sustainable company, and society realizes this. Regarding investors, it is possible to observe that companies in the food and beverage sector, which prove their environmental credentials, receive more and more preferential financing options due to their ecological footprint.

Ethical companies that play a good role, aiming to create a more sustainable future, attract people interested in being part of the team. In this segment, where the workforce is frequently renewed, having people willing to work is a positive thing for companies.

In addition to all the environmental impacts, the sources of unsustainable raw materials become increasingly expensive, that is, in order to continue with profitable production, industries will have to adapt to more ecological practices. Using by-products, turning them into additional revenue streams, is one way companies have found to reduce waste in food and beverage production. 

These benefits, in line with consumers' search for sustainable products, have awakened in companies a different view of sustainability. What was once seen as a “demand” by society is now a market differential and a growth enhancer. 

Transform data into insights

The use of technology in the various sectors of the supply chain, together with the data collected about companies and the environment, provide a basis for the creation of new sustainable solutions. Along with the growth in the implementation of sustainability in companies comes regulations, which oversee the level of sustainable development of organizations and their ethical standards. 

In addition to the synergy between points in the chain and efficient data collection, technologies are also responsible for more accurately indicating the points in the chain where waste occurs on a larger scale and the costs associated with the production and underproduction of products. . As is the case with RFID sensors, which allow an increase in the traceability of the supply chain, reducing the risks of food loss and increasing profit margins for companies. 

Implementing technologies such as big data, cloud computing and artificial intelligence (AI) on a day-to-day basis offers numerous competitive advantages over the competition. A good example is the use of these solutions to forecast demand, making daily KPIs available to managers on the functioning of the chain that allow the optimization of operations and production yield, aligning the supply chain with the flow of consumption. 

This visibility, collaboration and insight-based decision-making steer industries towards a more sustainable production path that keeps the industry profitable. Investing in initiatives focused on sustainability is an intelligent and safe alternative for companies to modernize, with technologies capable of supporting a huge amount of data, and producing with conscience and ethics, while guaranteeing their profitability and market position, now and long term. 

The idea of sustainability was never to impose an unattainable standard of investments and actions, but rather to create a basis for making more ethical and assertive decisions in relation to the environment and society. Helping organizations achieve sustainable results across individual boundaries and parameters, growing economically in a safe, responsible and ecological way along the way.

*Waldir Bertolino, Infor Country Manager in Brazil

Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies

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