Fenmarc and Asda could save 22,000 tonnes of carbon emissions - and thousands of pounds - from the potato and carrot supply chain, according to research by food and farming consultancy Bidwells.
"It is viable for Fenmarc to derive a significant proportion of its energy from renewable sources," said Bidwells project leader Greg Hilton. "Not only is this possible in practical terms, it makes economic sense."
The carbon savings hinge on the use of renewable energy, including biofuels and anaerobic digestion. Anaerobic digestion works by composting vegetable matter to generate electricity.
Potato and carrot waste could be used to power Fenmarc's packhouses, for instance, Hilton claimed.
The project also concluded that retailers should take the lead on compostable packaging - news that has been welcomed by Asda.
Fenmarc supplies Asda with 100,000 tonnes of potatoes and 25,000 tonnes of carrots each year.