Pooling of foldable boxes in Georgia – pilot circular economy project launched with the support of FAO and the EBRD • EastFruit

Pooling of Foldable Boxes in Georgia: Pilot Circular Economy Project Launched with the Support of FAO and the EBRD

According to EastFruit experts, pooling of folding reusable plastic containers is one of the most profitable and completely free niches both in grocery retail in general and in the fresh produce business of Georgia in particular. It allows, on the one hand, to drastically reduce both losses and costs of all market participants, and on the other hand, to reduce the negative impact on the environment, food waste, food loss and significantly improve the presentation and freshness of the products. Thus, it is an excellent example of circular economy.

The Importance of Sustainable Development Goals (SDGs)

The pooling of folding reusable plastic containers aligns with several Sustainable Development Goals (SDGs) set by the United Nations. These goals include:

1. Goal 2: Zero Hunger – By reducing food waste and loss, pooling contributes to achieving zero hunger by ensuring that more food reaches consumers.
2. Goal 12: Responsible Consumption and Production – Pooling promotes responsible consumption and production by reducing the use of single-use packaging and promoting the reuse of plastic containers.
3. Goal 13: Climate Action – By reducing the negative impact on the environment and promoting sustainable logistics solutions, pooling contributes to climate action.
4. Goal 15: Life on Land – By reducing food waste and loss, pooling helps to preserve biodiversity and ecosystems by minimizing the need for additional agricultural production.

Introduction to Pooling

If the term “pooling” is unfamiliar, it refers to the practice of sharing and reusing folding reusable plastic containers for transportation and storage. To learn more about pooling, its history, and its impact on the fresh produce business, it is recommended to read the following articles:

• What is pooling, the history of pooling, the EU experience and why the countries of our region will definitely eventually adopt it
• Practical experience and history of pooling in Ukraine
• History and experience of pooling systems in Turkey

Piloting Pooling in Georgia

Within the framework of the “FAO/EBRD Cooperation – Climate—Smart Digital Solutions for Fruit and Vegetables Production” Project, sustainable logistics solutions were introduced for participants in the Georgian fruit and vegetable market in order to further expand these logistics solutions in other countries.

Market Assessment and General Conditions for Pooling in Georgia

Before implementing pooling, a market assessment was conducted to analyze the packaging used for Georgian fruits and vegetables and the existing supply chain used by supermarkets and wholesale markets. It was estimated that retail chains accounted for 15-20% of the fresh fruit and vegetable trade in Georgia, with the share varying depending on seasonality, regions of consumption, and assortment. The analysis revealed that transitioning to pooling of folding reusable plastic crates or boxes could result in significant cost savings, such as saving up to US $2.2 million per year on bananas alone.

The Existing Packaging Market in Georgia

Currently, the following types of transport containers are used for Georgian fruits and vegetables:

1. A disposable plastic box made from recycled polyethylene, which is often reused.
2. A pre-used banana box, which is commonly reused in violation of sanitary standards.
3. A disposable cardboard box, mainly used for imported fruits and vegetables.
4. Reusable plastic packaging, used by retail chains with varying efficiency.

The Pilot Project with Nikora Trade

After careful analysis, the retail chain Nikora Trade was selected as the pioneer for the pooling pilot project in August 2022. Despite not being a leader in the fruit and vegetable segment, Nikora Trade showed openness to innovation and had the necessary infrastructure for the pilot. The pilot project involved more than 350 Nikora Trade stores, where there was a stable logistics system for fruits and vegetables from the distribution center. Fruit and vegetable suppliers currently use 5,500 crates.

Over the next 3 months, Nikora Trade will analyze the efficiency of the new logistics system and decide on the scaling of the business model for the future.

SDGs, Targets, and Indicators

SDGs Addressed:

1. SDG 12: Responsible Consumption and Production
2. SDG 13: Climate Action
3. SDG 15: Life on Land

Targets Identified:

• Target 12.3: By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses.
• Target 13.3: Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.
• Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally.

Indicators:

• Indicator 12.3.1: Food loss index
• Indicator 13.3.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning measures into primary, secondary, and tertiary curricula
• Indicator 15.2.1: Progress towards sustainable forest management

The issues highlighted in the article are connected to several Sustainable Development Goals (SDGs). The first SDG addressed is SDG 12: Responsible Consumption and Production. The article discusses the pooling of folding reusable plastic containers as a way to reduce costs, minimize food waste, and improve the presentation and freshness of products. This aligns with Target 12.3, which aims to reduce food losses along production and supply chains. The indicator relevant to this target is 12.3.1, which measures the food loss index.

The second SDG addressed is SDG 13: Climate Action. The article mentions the introduction of sustainable logistics solutions to reduce the negative impact on the environment. This aligns with Target 13.3, which focuses on improving education, awareness, and capacity on climate change mitigation. The indicator relevant to this target is 13.3.1, which measures the integration of climate change measures into curricula.

The third SDG addressed is SDG 15: Life on Land. The article discusses the use of reusable plastic containers and the reduction of single-use packaging, which can contribute to sustainable forest management and halt deforestation. This aligns with Target 15.2, which aims to promote sustainable forest management. The indicator relevant to this target is 15.2.1, which measures progress towards sustainable forest management.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: east-fruit.com

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