Yoghurt manufacturer Chobani donated 150,000 kilograms of product to charity last year.
Its factory in Dandenong South, in Melbourne’s south-eastern outskirts, is in an area where many in the community are struggling.
About 32 per cent of households in the area earn less than $650 a week compared to the national average of 16.5 per cent, according to figures from the Australian Bureau of Statistics.
“Dandenong has a high need in relation to food insecurity,” Chobani general manager Tim Browne said.
“We’re distributing food to those in need through a variety of really dignified and safe spaces.”
Tim Browne says Chobani is trying to do its part to assist. (ABC News: Simon Tucci)
Chobani would like to donate more, but the cost of packing, refrigerating and transporting food to charity comes at a cost.
“Often, surplus stock does go into alternative waste streams, so any cost relief any food manufacturer can get … would certainly ensure that that food is diverted outside of a food waste stream and into the hands and onto the kitchen tables of those that need it,” Mr Browne said.
The company is behind proposed legislation that would see food manufacturers and farmers receive a tax incentive for donating food to charity.
With many farmers and food manufacturers struggling, the incentive is designed to offset the cost of getting food to charities.
Tanya Barden is also supportive of tax incentives for producers to contribute more. (ABC News: Matt Roberts)
Tanya Barden from the Australian Food and Grocery Council said a tax incentive could mitigate costs to make it easier for brands to donate more product.
“It’s often cheaper to dump excess product into landfill, and so there has been a barrier to being able to provide more to Foodbank,” she said.
Wasting food while many are going without
About 7.6 million tonnes of edible food is wasted each year in Australia. At the same time there’s a growing number of Australians going hungry.
Food charity Foodbank estimates close to four million households struggled with hunger last year, with demand doubling.
At a neighbourhood centre in Risdon Vale just outside of Hobart, donated bread and other food items keep many in the community going.
Sam Bird volunteers at the centre and has six children.
“It’s good to know that it’s here if its needed and it’s out the front so I don’t have to go to somebody and admit that I need help because that is a big issue for some people,” she said.
Sam Bird says the cost of fresh produce is “sky high”. (ABC News)
Ms Bird said many people in the area can’t afford to put food on the table.
“It’s the bread and the fruit and veggies, fruit and veggies is the biggest thing that everyone relies on around here cause (the cost) is sky high now,” she said.
But the centre is struggling to keep up with demand.
Foodbank’s Tanya Clifford says she supports the idea of tax incentives for food donations. (ABC News)
“It’s very much out of control,” manager Tanya Clifford said, adding the amount of food they are able to access from suppliers like Foodbank and Loaves and Fishes is limited because of that demand.
Ms Clifford believes a tax incentive for food donations could be a game changer.
“That would be absolutely fantastic because we wouldn’t be skimping we would always have plenty of food to put out,” she said.
Brianna Casey says much more could be done to minimise waste and help people in need. (ABC News: Tony Hill)
Foodbank predicts that the tax incentive could unlock 100 million meals a year as well as reducing greenhouse gas emissions from food waste.
“We’ve got to do better by our farmers, we’ve got to do a better job by our planet and we’ve got to do a better job by our farmers and we’ve got to do a better job by those vulnerable Australians who need our help right now,” Foodbank’s Brianna Casey said.
How would it work and how much would it cost taxpayers
The tax incentive has been estimated to cost between $50 and $100 million each year.
“But we know that food waste costs us $36.6 billion, so even looking at the food waste issue alone there is a very dramatic benefit that’s outweighing any risks,” Ms Casey said.
Small to medium-sized business could claim up to 45 cents in the dollar of the costs of donating food.
The amount a business can claim is capped at $5 million.
There are caps within the legislation to lock out the big supermarkets from claiming the incentive.
“To make sure the bill can be targeted in its impact and have the best possible results for those Australians who really need it,” Ms Casey said.
“[Coles and Woolworths] have given me a reassurance that while they welcome this initiative, this is not a tax incentive that they’ll be seeking and I’ll be working to make sure that they honour that commitment,” Liberal Senator Dean Smith said.
The bill is due to go before the Senate later this year before going before the House of Representatives early next year.
If passed the incentive will only be available for three years.
“It does not have to be an initiative forever, we would hope the cost of living crisis abates,” Senator Smith said.
“But at this particular point in time Foodbank, Oz Harvest, Second Bite and many many others are saying to me … this is now very, very urgent.”
