Guide to Green Practices and Certification in the Food Industry

Green Practices and Certification in the Food Industry

Written by Lindsay Chung, Senior Business Credit Advisor at AOF

Green Practices in the Food Industry

Discover ways you can use green practices in the food industry to stand out in crowded marketplaces while reducing your environmental footprint. As consumers become more environmentally conscious, they are seeking out companies that share their values and they are willing to pay more for eco-friendly products. Going green also has the added benefit of helping your business comply with ever-changing environmental regulations.

It can be difficult to know where to start when you have decided to go green. The first steps to take are to focus on responsible sourcing, resource management, and pollution and waste management.

Responsible Sourcing

• USDA Organic Products: Source products from farmers that utilize organic farming techniques like conserving biodiversity, restoring soil health, and protecting natural resources which can help ensure a sustainable food system. Using USDA Organic products will also reduce the amount of chemicals and GMOs in your products.
• Sustainable Protein Options: Consider offering more planet-based options which can dramatically decrease your environmental impact, this also has the added benefit of broadening your clientele to include vegans and vegetarians. Find vendors that use sustainable seafood practices to ensure healthy and resilient ecosystems.
• Eco-Friendly Food Sourcing: Start by working with local suppliers to provide your clients with the freshest ingredients while supporting your local economy and reducing your carbon footprint. Use green transportation for food products and ingredients to develop a more sustainable supply chain. Another option is to use a carbon offset program to neutralize transportation emissions.

Resource Management

• Water Conservation: Save water by regularly checking for leaks, training employees on ways to save water, harvesting (check local by-laws), using drip irrigation, and installing low-flow fixtures.
• Energy Efficiency: Decrease your energy bills and improve your energy efficiency by using Energy Star equipment, LED lights, occupancy sensors, etc. Consider using renewable energy in food production by installing solar panels or purchasing Green E-Certified Renewable Credits (RECs) where available.

Pollution and Waste Reduction

• Recycling & Composting: Consider composting, reusing, and recycling organic waste to save on waste bills and reduce the waste that ends up in the landfill.
• Food Waste Management: Implement better inventory management and donate surplus food to reduce food waste.
• Environmentally Friendly Food Packaging: Support vendors that produce biodegradable, compostable, recyclable, or other sustainable packaging for food.
• Chemical Usage: Find cleaning products that ensure high environmental standards for safety and eco-friendly packaging. Experts recommend looking into products that have been certified by reputable organizations such as the EPA Safer Choice, Green Seal, or ECOLOGO.
• Eco-Friendly Building Materials and Furnishing: Use nontoxic paint and eco-friendly building materials (e.g. bamboo or reclaimed wood) to incorporate sustainability in the renovation or construction process. You can learn more about green building certifications in our resource library.

Green Food Production Certification Considerations

The green certification process can be daunting, so it is important to consider all the different ways a certification could impact your business before moving forward.

• Customer Trust and Competitive Advantage: Green certification builds credibility and trust with eco-conscious customers. Certified products can and will differentiate your business in a crowded market.
• Business Finances: Applying for and meeting the requirements needs to qualify for certification is a significant financial investment.. The certification fees range from a few hundred to several thousand dollars depending on several factors including the type of certification, the location of your facilities, and the size of your business. These costs could potentially be offset through premium pricing and long-term operation savings on waste removal and utility costs.
• Increased Market Access: Many marketplaces, retailers, and restaurants now prefer or even require certified products.
• Environmental Footprint: Small Businesses in the food industry can make a significant positive environmental impact by adopting more sustainable practices.

There are several certifications that your business can obtain to solidify your commitment to the environment and grow your customer base. We’ve highlighted some of the most common certifications for small businesses in the food industry below.

USDA Organic

Organic farming techniques are a cornerstone of sustainable farming methods and livestock farming. This organic food certification avoids synthetic pesticides, GMOs, and artificial fertilizers and emphasizes soil health and ecological balance.  Small businesses must meet the standards below to qualify for a USDA Organic Certification.

• No synthetic chemicals.
• Meet animal welfare standards for livestock.
• Promote biodiversity, soil health, and ecological balance.

Learn more about the National Organic Program (NOP) standards for organically produced products sold in the United States. Visit the certifier locator to find an accredited certifying agent who will inspect your farm or processing plant.

GREEN RESTAURANT ASSOCIATION (GRA) CERTIFICATION

The Green Restaurant Association (GRA) certifies restaurants that are committed to sustainability in energy efficiency, responsible food sourcing, and waste reduction. Restaurants earn GreenPoints to earn different certification levels and badges. The GRA standards below are used to measure the restaurant’s accomplishments and provide guidance on how they can continue to make an impact.

• Energy efficiency and water conservation
• Waste and pollution reduction
• Sustainable food sourcing
• Eco-friendly furnishing and building materials
• Community involvement

Learn more about how this certification could benefit your business on the Green Restaurant Association’s webpage and take a quick assessment to get your restaurant’s baseline.

RAINFOREST ALLIANCE CERTIFICATION

The Rainforest Alliance is an international certification for products, especially coffee, tea, and cocoa, that are sustainably sourced with a focus on biodiversity and social responsibility. In an effort to provide a pathway for small businesses to incorporate more resilient and inclusive agricultural practices, the Rainforest Alliance has the following requirements for certification:

• Sustainable agricultural practices
• Fair labor protections
• Environmental conservation
• Biodiversity protection

The Rainforest Alliance has training and resources available to help small businesses navigate the certification .

How to Get A Green Food Production Certification

Although each certifying entity has its own certification journey, most agencies follow a similar process.

1. Identify: Start by deciding what certification is the best fit for your business. Look into the standards and requirements for the certification to determine what you would need to qualify.
2. Plan: Create a plan that includes the changes that need to be made to meet certification requirement, a detailed timeline, pricing structure,  financial projections, marketing and communications strategy, updated packaging design, a budget.
3. Prepare: Start implementing your plan by developing sustainable policies, identifying local vendors, training employees, and incorporating new eco-friendly practices. If necessary, find an independent certifying agent and schedule a time to meet. Please note that this is not a requirement for all the certifications.
4. Apply: Submit an application with details about your plan and current eco-friendly practices.
5. Pass Inspection: Help the agent interview employees, review documentation, test products and inspect your operation to ensure that you are complying with certification standards. Some certifications provide you with time to take corrective actions before they make the final determinations.
6. Receive Certification: Promote your achievement and commitment to sustainability by adding the certification’s seal to your products and marketing materials. Many certifying agencies provide guidance on how to use green marketing in the food industry. Adjust your prices and communicate with customers accordingly, too.
7. Review Annually: Ensure that you’re keeping updated documents, scheduling regular audits, and paying the renewal fees to keep your certification current.

Frequently Asked Questions (FAQs)

How long is the typical certification process?

It usually takes 3-12 months to complete the certification. There are several factors that influence the timeline including the type of certification, of the business model, and size of the business, and the upgrades needed to meet the standards.

What resources are available for small businesses thinking about getting certified?

There are several programs available to help small businesses with certification or energy improvements including the USDA Rural Energy for America Program (REAP) and California Green Business Network Electrification Mini-Grants, It’s important to also look at the rebates, tax credits, grants, and loans offered by local, state, and federal government agencies and industry-specific associations.

What other certifications would be worth considering?

In addition to the certifications above, we recommend looking into B Corporation, Green America’s Green Business Certification, California Green Business Network, Non-GMO Project, & Fairtrade.

How much does the certification usually cost?

The costs for certification and the annual renewal vary depending on several factors including the size of the business, the complexity of the operation, and upgrades needed. The Green Restaurant Association and USDA Organic Certification range from $500 to several thousand dollars with annual fees usually costing less than$1000. The USDA’s Organic Certification Cost Share Program (OCSP) reimburses up to 75% of the certification costs. The Rainforest Alliance Certification typically costs more than $1500  with annual fees reaching several thousand dollars.

What is FDA Approved Labs’ role in the certification process?

The FDA Approved provide critical testing to verify that products meet safety, quality, and compliance standards.

What are the main challenges of achieving and maintaining green certification?

The certification process can be expensive, complex, time-intensive, and difficult to navigate. To overcome these challenges, start by making incremental changes and ensure you do extensive research and planning before you start the process.

How can you promote green certification to customers?

Green marketing in the food industry can be as simple as promoting your sustainability milestones on social media, publishing blogs or videos detailing your sustainability practices, displaying your certification logos on products and marketing materials, or hosting eco-friendly events. Ensure that you’re clear, transparent, and honest about the impact that you’re making to avoid greenwashing.

How do I know what certification is best for my business?

There are several things to consider when selecting the certification(s) including your company’s values and goals, industry standards, financial and time constraints, customer expectations, and certification benefits.  For example, Rainforest alliance certification would be best for larger businesses that are focused on sustainable production and ethical sourcing. The companies that are an ideal match for this certification typically have a direct connection to agriculture or forestry like companies that sell coffee, tea, cocoa, bananas etc.

Are you ready to join the growing number of businesses that are leading the way in sustainable food production?

Businesses that implement green practices in the food industry gain a competitive advantage, reduce utility and waste costs, and make a positive environmental impact. You can start small by implementing small changes like eco-friendly food sourcing, investing in energy-efficient machines, training your employees on sustainability practices, using environmentally friendly food packaging, or developing and waste management system.

Once you’re ready to take the next step, carefully choose the certification that is right for you a develop a plan that details what you plan to do and how it will impact your business. The green certification process can come with a high upfront cost and rigorous standards but will pay dividends to your business and the environment down the road.