Exploring the 'Osaka Model': An Approach To Minimizing Food Loss

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Food loss, which occurs when perfectly edible food is discarded because it is slightly misshapen or close to expiration, is increasingly becoming an issue. The Osaka Chamber of Commerce and Industry (OCCI) and Osaka Prefecture are working together with private companies to reduce this food waste. They are developing a system to collect discarded food and sell it cheaply. 

The system has the advantage of reducing the burden on food manufacturers, as it handles the entire process from collection to sales on their behalf. The collaboration aims to promote this "Osaka Model" to completely eliminate food loss in the future.

Testing the System

In May, the OCCI and the prefectural Department of Environment, Agriculture, Forestry, and Fisheries signed a partnership agreement with several companies. The companies include Tokio Marine & Nichido Fire Insurance, logistics company Maguchi Group (Osaka City), and Loss Zero. Loss Zero is a startup that sells surplus food at discount prices. 

They are currently conducting a demonstration of a framework for food loss reduction targeting processed foods and confectioneries. Dubbed the "Osaka Model," tests of the system will run through the end of October.  

Under the Osaka Model, food manufacturers contact a designated call center when they have food to dispose of. Maguchi Group is responsible for the collection and transport of food products deemed acceptable. Such foods exclude agricultural produce, perishables, and deli foods. Loss Zero then purchases and sells the products to its online members at affordable prices.

Insuring Against Food Loss

Meanwhile, Tokio Marine & Nichido is considering the development of what it is tentatively calling "Food Loss Reduction Insurance." This insurance would compensate for collection and transport costs. 

OCCI and the prefectural government will take measures to increase the number of companies using the system. They also plan to disseminate information and provide advice for the system’s smooth operation.

According to OCCI, inquiries are coming in from food manufacturers interested in the initiative. They plan to increase the number of participating companies by holding seminars on food loss in the future.

OCCI Chairperson Shingo Torii (Representative Director and Vice Chairman of the Board of Suntory Holdings Ltd.) praised the model. "Reducing the enormous cost and volume of food loss," he said, "is an important initiative that will help achieve the SDGs."

"Up until now, we have tended to focus on how to make food delicious. However, we must now utilize technology in adapting to different goals," Torii urged.

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