Sustainability Efforts Explored at OPS

A quartet of produce industry experts discussed the ambitious sustainability programs being offered by their respective companies and opportunities for greater environment-friendly practices within the produce industry during an educational session at the recent Organic Produce Summit.

“Sustainability Through the Supply Chain: What’s Working and What’s Not?,” moderated by Michael Castagnetto, President of Robinson Fresh, featured a pair of retailers and leadership from a major organic banana grower discussing their respective companies' commitment to enacting solid sustainability programs and reaching across the supply chain to reduce their carbon footprint and positively impact the planet.

Moderator Michael Castagnetto (Robinson Fresh) and panelists Daniella Velazquez de Leon (Organics Unlimited), Shawn Peery (Albertsons Companies), and Monica Wyant (Meijer)

Joining Castagnetto on the panel were Daniella Velazquez de Leon, general manager of Organics Unlimited; Shawn Peery, national vice president of produce for Albertsons Companies; and Monica Wyant, produce business manager for Meijer.

To begin the discussion during the hour-long session, Castagnetto revealed that for Robinson Fresh “sustainability is a key driver” of its planned growth. He said the company is working with all its supply chain partners on various elements of the program to “drive results.” He admitted that the company is early in the process, but its commitment is firm.

Michael Castagnetto, President, Robinson Fresh

Castagnetto organized the seminar discussion through what he called the three pillars: product, packaging, and the path to purchase.

Castagnetto revealed that for Robinson Fresh “sustainability is a key driver” of its planned growth.

In giving brief overviews of their individual commitment to sustainability, each of the panelists reported similar paths to progress. Daniella Velazquez de Leon called sustainability “a guiding value” in everything her company does. She noted that while the banana industry has long been all about getting the highest yield for the cheapest price, that is not what drives Organics Unlimited since it strives to get a fair price for its growers.

Wyant called Meijer’s sustainability effort a “core pillar” and said the company is taking an “all hands-on deck approach.” Specifically, the Michigan-based retailer is committed to cutting food waste in half by 2030, using a variety of tools including composting, utilizing better packaging, and donating food that is nearing the end of its in-store shelf life.

Monica Wyant, Produce Business Manager, Meijer

Meijer is working with its produce suppliers to find out the progress they have each made and to tell that story to consumers. Wyant added that the company’s strategy is to “lead by example” by cutting its own carbon emissions and sharing its progress with its suppliers.

Peery said Albertsons’ sustainability effort is defined by four pillars: people, planet, product, and community. He reported that the retailer has already accomplished a lot in its efforts, but it has not broadcast that progress. Albertsons' goals include reducing its own emissions by almost 50 percent by 2030, giving equal access to all employees as part of its diversity movement, achieving net-zero emissions in its own operations by 2040, and donating significant dollars to help break the cycle of poverty in the communities it serves.

Specifically, the Michigan-based retailer is committed to cutting food waste in half by 2030, using a variety of tools including composting, utilizing better packaging, and donating food that is nearing the end of its in-store shelf life.

Delving deeper into the actual sustainability work it is doing, Velazquez de Leon said the company eliminates food waste by using every part of the bananas it produces, from shipping top-quality product for retail to diverting challenged product to secondary markets. She added that its San Diego warehouse is equipped with solar panels, and the company works with a local food bank to donate product past its prime.

Velazquez de Leon focused much of her attention on the company’s “GROW” program, which is designed to pay growers a fair price for their product and pay farmworkers a decent wage while also providing additional funds for the worker communities. Those funds are used for many different programs, including improving farmworkers’ lives and providing scholarships so the next generation can help break that cycle of poverty.

Daniella Velazquez de Leon, General Manager, Organics Unlimited

The Organics Unlimited leader called it “ethical sourcing” and revealed that 60 cents from every box goes into the fund. To date, the program has raised $3 million for farmworker communities. Additionally, the company also offers volunteer opportunities for retailers to spend a week in these farmworker communities and see firsthand how the money they contribute through their purchases is being utilized.

Velazquez de Leon said the company eliminates food waste by using every part of the bananas it produces, from shipping top-quality product for retail to diverting challenged product to secondary markets.

In discussing packaging, Velazquez de Leon said there is nothing better than the perfect non-packaging that is a natural part of every banana. Organics Unlimited is focused on using 100 percent-recyclable and biodegradable master cartons and is also reducing its use of plastic film and working to find better alternatives.

Velazquez de Leon said in the banana industry, sourcing from Mexico is “as local as it gets.” Most of the Organics Unlimited banana production is from Mexico, which reduces food miles significantly as it is a 2-3-day trip via truck rather than two weeks on the water from a more southern production country.

Shawn Peery, National Vice President of Produce, Albertsons Companies

Peery said Albertsons' effort to reduce food miles focuses on sourcing regionally whenever possible for the company that has a national footprint. Sourcing domestically first is also a company policy, he said, as “local suppliers are very, very important to Albertsons.”

The movement toward CEA (controlled environment agriculture) offers new opportunities to source products closer to their final destination and further eliminate food miles. Albertsons has also developed a program to better manage the shipping of its products from its distribution centers to the store, which can help to reduce food miles.

Peery said Albertsons' effort to reduce food miles focuses on sourcing regionally whenever possible for the company that has a national footprint.

As a Michigan-centric retailer, Wyant said local product is part of Meijer’s DNA. “We work with 250 local growers, eliminating food miles and enriching the lives in the communities we serve,” she said.

In discussing challenges, Velazquez de Leon again focused on the typically low retail price of bananas, which makes it difficult for growers to get a fair return. She said costs have gone up tremendously, and growers must get a fair return.

Panelists Daniella Velazquez de Leon (Organics Unlimited), Shawn Peery (Albertsons Companies), and Monica Wyant (Meijer)

Wyant said the industry must do a better job of telling its story and make it easier to achieve sustainability goals, adding the industry can do more on the sustainability front.

“We work with 250 local growers, eliminating food miles and enriching the lives in the communities we serve.” - Monica Wyant

Peery agreed and noted that a supplier’s sustainability program should be a central part of every annual business review. He indicated that if it is part of the conversation, change will occur.

Castagnetto said Robinson Fresh would like to see the industry standardize sustainability definitions. He said the words are used by many suppliers in different ways, and there should be some consistency that gives suppliers confidence when employing those words and phrases.