Exploring incentives to move up the food waste Hierarchy: A case study of the Australian cheese manufacturing sector

Halving food loss and waste by 2030 is a major global challenge. The Food Waste Hierarchy underpins strategies to achieve this, but understanding the relative importance of motivators to incentivise change is limited. This study utilises a pertinent case study of the major by-product of cheese-making, 'whey', to explore this in Australia and is underpinned by the Extended Institutional Theory as a key analytical framework. Through semi-structured interviews with 42 nationally-representative firms (31% of the industry), motivators were quantified using a novel 100-point allocation instrument, complemented with direct quotes from participants. Profit maximisation, environmental protection, and government regulation emerge as key motivators, but there is significant heterogeneity. Regulatory pressures are different across hierarchy-levels. However, results suggest they are not sufficient to result in firms 'moving up' the hierarchy. Notably, one participant that was currently disposing of whey and receiving AU$160,000 in non-compliance penalties, made a 'sideways' move within the lowest hierarchy level (disposal). Based on this study's sample, 41% of the industry's target could be achieved if all whey currently classified as 'waste' is diverted but findings indicate a potential failure of markets, governments, and social license to drive efficient resource allocation while limiting negative externalities. Pathways to challenge the status quo and transform the food system are discussed, which will likely require simultaneous forces to move enough firms up the hierarchy by 2030.