He added that Sharing Excess extensively uses technology to track the food donations from the wholesaler to the receiving charity, which allows for the creation of the documentation needed so the wholesaler can qualify for tax credits. They are also documenting how much waste they are preventing from exiting the market as trash, and how much is that saving market tenants.
While Sharing Excess relies on donations from a myriad of foundations and organizations that fund such activity, Ehlers wants to create a revenue stream that makes his operation more sustainable. He believes that the savings in disposal costs offers an opportunity to create income. He noted that since it began operations in Philadelphia, Sharing Excess has diverted 20 million pounds of produce from the dumpster and landfills to people in the community in need.
“Our goal is to improve our value and eventually be paid as a service provider for reducing waste and managing a company’s donation plan,” he said.
Ehlers also wants to export this idea to other markets. Sharing Excess is already operating in the Hunts Point Terminal Market in New York City with the aid of S. Katzman Produce, a fourth-generation New York wholesaler.
Stefanie Katzman, who is a 23-year produce industry veteran and the executive vice president of the family business, explained that Katzman has given Sharing Excess the space to operate under its roof in Hunts Point and has also provided logistics equipment. “Sharing Excess reached out and when I got in contact with Evan and discussed what they were doing, I was so inspired I asked how we could get involved,” she said.
After visiting the Philadelphia operation, Katzman realized that the two markets are built differently and a New York operation would have different needs.
“Our first challenge was to find space in which they could operate,” she said. “Philly has a lot of common area where they could carve out space, we couldn’t find a similar space in New York,” she said. “We ended up dedicating about a half of one of our units to the program. They have floor space and we are also letting them use a storage van that has the capacity for 26 pallets of product,” she said. “We are hoping to make this a permanent situation.”
As far as how Katzman Produce operates, Stefanie Katzman said it works very hard to find a home for each box of produce that comes into its warehouse as it works with high end retailers, mom and pop stores, bakeries, restaurants and other wholesalers. But at the end of the day, there is also waste.
The company has worked with food banks and local charities, but she said Sharing Excess is a great fit for their operation. They can take the excess product, rework it if necessary and handle distribution to where it will do the most good.
“They haven’t replaced our previous charitable partners but added another option for us,” she said. “They have helped us streamline our process.”
She believes it is a workable model that can be exported to other produce distribution centers such as other terminal markets. Apprised of Ehlers concept of creating a sustainable revenue stream as a service provider, Katzman thought about it for a few minutes and said, “I kinda like it, especially in our industry. I think it could work.”
She noted that for many of the smaller wholesalers figuring out their waste stream issues and donation programs can be a big challenge and a challenge that comes with costs. She added that there is no doubt there is a lot of food waste in the United States and she is all for figuring out how to reduce that while also helping other people.
If a company can turn it into business that’s all the better.