Food waste is becoming a global epidemic of vast proportions. In fact, the United Nations Food and Agriculture Organization estimate that 1.3 billion tons, or approximately one-third of the food grown worldwide, is thrown out every year. What a waste. Literally. In the United States the Department of Agriculture has found that dairy products account for largest portion of food wasted annually. But what if you could keep your unsold wholesale cheese out of the landfill and recoup some of your investment?

Too Much Milk

Last year excess dairy products in the United States were at an all-time high, accounting for $91 billion in waste, according to the United States Department of Agriculture. Dairy farmers increased their herd sizes in 2014, and by spring of last year the number of dairy cows was at a 20-year high. But you can’t just tell cows to stop producing milk, and some farmers are having to dump millions of pounds of milk in their fields. Last month America amassed the largest stockpile of cheese in its record-keeping history. As dairy products stock up, some lawmakers have asked the USDA to purchase their excess wholesale cheese for distribution to food banks. There are also other ways that food manufacturers can still get a return on their investment.

Recouping Revenue

You can only age cheese for so long, so what can you do with your unsold inventory? Some food manufacturers have found success by using a combination tools such as inventory management, discount sales, recycling and donations to help mitigate the losses when too much product remains on the shelves.

• Inventory Management. Make sure your company has the correct inventory software to manage your supplies. If you’d rather not do this part yourself, some companies offer online inventory management, allowing you to focus on improving your product. Beyond the software, another way to manage your inventory effectively is to train a team who will be responsible for the whole process, allowing them to see the big picture and become invested in the result. This team can ensure that inventory count becomes part of your business routine, setting par levels to manage your deliveries. Some food manufacturers also find it helpful to create inventory sheets that reflect product locations within the facility. Sometimes rearranging space may also help with proper rotation of goods and minimizing waste.
• Discount Sales. One option for regaining lost income from unsold inventory is to sell your overstock or off-spec cheeses at a lower cost to discount and food closeout stores. Several companies specialize in taking such problem ingredients and turning them into cash through a network of contacts in the food manufacturing marketplace. Selling your surplus products, even at a discount, can help you recover some of your investment and free up funds needed for further production.
• In America alone about $165 billion of food is thrown out annually, which adds up to $680 billion each year in industrialized countries. That’s a lot of landfill, which in turn means a lot of methane gas. Recycling this food waste is not only better for the environment, it can also be better for your pocketbook. Scientists are studying new ways to use food waste, and many creative solutions are being found. Researchers have been exploring different types of biofuels for many years, and recently they have been testing foods like parmesan cheese and apples for their potential as a fuel source.

Another way to recycle food is by creating products for non-food industries. Companies are able to create an ingredient exchange of sorts, taking unfit food products and then reconditioning and repackaging them with a label stating that they are “not for human consumption.” These can be sold in different, non-food markets. Meat by-products, cheese scraps and left-over bakery items can all be recycled this way.

Recycling food waste can save you money both when you sell it, and when you don’t have to pay to dispose of it. Paying less to garbage haulers can add up over time. Some garbage collection agencies also discount your rates if you separate food waste for composting.

• Each year nearly 40 percent of food in the United States is thrown away. With 41 million Americans struggling to get enough food each day, donating your excess inventory will not only give you a tax donation, it may also improve your community standing as you help out those in need by giving them your unsold inventory. There are many organizations who glean unwanted food products and distribute them to people living in poverty and provide companies with a tax donation slip.

Turn Problem Ingredients Into Cash

Although wholesale cheese manufacturers may feel their products have a long shelf life, the high quantities of dairy products now being produced have left many realizing that they can’t just shelve their problem ingredients. Recouping your investment through inventory management, selling to discount buyers, recycling your scraps and donating your overflow can put some money back into your cash cow and help your business grow.

Turning Problem Ingredients Into Value for Your Wholesale Cheese Business

Even with the most careful planning and monitoring, wholesale cheese manufacturing can come with the risk of unsold inventory. However, when connected to the right markets, lower grade or moldy cheese can make money for your company. Finding markets for excess products can maximize your profits, and it comes with the bonus of recycling unused stock back into the environment. What might seem like waste has plenty of hidden value, and transforming your viewpoint can help you make the most of your business

Reasons to Sell Excess or Expired Product

No matter how careful you are with your inventory management, you will need to handle some excess. Using your extra stock efficiently gives you an advantage over competitors who see no other choice but to throw out what they cannot sell. Additionally, finding uses for excess food products is increasingly important to maintaining the environment. With estimates of food waste ranging between 25% and 40%, alternative solutions for unused products are becoming central to limiting waste—and connecting your excess product to safe, green alternatives can help limit environmental damage.

You can offset both of these costs simultaneously. Whether you’re looking to get rid of excess inventory or researching ways to make some money with problem ingredients, finding buyers for your wholesale cheese business can be a smart, sustainable way to increase profits.

Where Does Food Waste Accumulate?

A great deal of unused food products ends up in landfills, where it produces greenhouse gases. While throwing away or incinerating unsold inventory contributes to this growing problem, there is an increasing number of alternatives. Specialized companies can transform unused stock into alternative fuel types, fertilizer, or compost; they can also use it for other industrial purposes. It is important to remember that what might not be valuable to your business is central to the success of other industries. Selling the excess from your wholesale cheese business can give you extra money to reinvest and supports efforts to make food production more sustainable.

Changing the Tide of Food Waste

Research and development teams continue to find new uses for otherwise unmarketable products, such as discarded plant materials. As investment in this research grows, food manufacturers will become increasingly important players in a movement to care for the environment and make food manufacturing economically and environmentally productive. Simply put, this research generates value for food manufacturers: as the uses for waste grow, so do the opportunities to sell these products. The increasing devotion to recycling creates markets where the only cost-friendly alternative used to be driving to the landfill.

Additionally, using your business to help scientific research can create a positive influence within your community. By choosing to sell products you would otherwise discard to companies committed to finding their uses, you contribute to a growing movement of research on sustainability. You already provide quality products through your wholesale cheese business. Selling the unused ingredients means you’ll have another way to nurture the cycle of food production in your community and around the world.

Selling Expired Products

Thanks to research in biofuels and animal feed, there are even markets available that can put your expired products to good use. Stock you might consider unusable, such as moldy cheese, can be marked for sale to non-edible markets. These kinds of food items can be repurposed for industrial uses, giving you an additional opportunity to sell.

Finding the Option That Fits Your Company’s Needs

There are several businesses across the globe that can make good use of your unused ingredients. With so many possible options, it can be difficult to know exactly which buyer will give you the best price and use your product most efficiently. If you are unsure of where to start, seek advice from a service well-versed in the cheese market. Using the expertise of Ingredient Exchange, which is both experienced in inventory management and connected to repurposing companies around the world, will help you get the most value out of your products.

Preparing Your Stock for Alternative Markets

Ready to sell? This is all you need to make the most of your extra products:

• Estimated volume and price requirements
• Data, such as brand, shelf life, and weight
• Description of your product
• Reason for reselling, including any issues or concerns

For more comprehensive information, please see the seller’s guide.

Sustain Your Business, Your Community, and the Environment

The reality of food waste might be troubling, but it provides an opportunity for businesses willing to find more creative uses for their excess ingredients. Investing the waste from your wholesale cheese business can help you transform problem ingredients into cash, and you’ll know that your choice positively benefits another company. Landfills are one of many options in redirecting waste—take the time to choose the option that will return the most value to your company, your community, and the environment.