Where do we lose fresh produce in the supply chain the most?

The extent of food loss and waste in the world today is challenging to determine precisely, and limited ongoing research in the area makes it difficult to provide accurate figures. This is a notable gap considering the projections indicating the need for a significant increase in food production to meet future global demand. The global food supply chain (FSC) experiences substantial losses, particularly in the aftermath of the Covid-19 pandemic, but this aspect has not received sufficient attention.

Food loss and waste (FLW) have evolved from being a negligible nuisance to a significant and escalating problem. This transformation is occurring against the backdrop of a rapidly growing global population with increasing demands for food and energy, environmental degradation, climate change, fluctuating prices, and production pressures.

The reasons behind food loss and waste are multifaceted and occur at various stages of the supply chain, from production to consumption. Addressing this issue is crucial for enhancing food security, reducing environmental impact, and ensuring sustainable global food systems. Efforts to prevent food losses need to be a priority, considering the interconnected challenges facing the world's food supply chain.

  • Shortage of access to data on production

  • Price

  • Requirements

  • Storage facilities

  • Logistic issues

  • Local transportation

  • Storage

  • Last-minute order cancellation

  • Improper planning, production and distribution

  • Quality requirements

  • Rate fluctuations

  • “Natural Overproduction” due to favourable growing conditions

Food Loss and Waste definition

According to the Food and Agriculture Organisation of the United Nations, the definitions of food loss and waste reads as follows:“Food loss is the decrease in the quantity or quality of food resulting from decisions and actions by food suppliers in the chain, excluding retail, food service providers and consumers.” 

“Food waste is the decrease in the quantity or quality of food resulting from decisions and actions by retailers, food services and consumers. ”Food losses are usually the unintended results of technical and management limitations in agricultural production processes, infrastructure, storage, transport, packaging, and/or marketing while food waste refers to food that is of good quality and fit for consumption but does not get consumed because it is discarded either before or after it is left to spoil.

Food waste typically, but not exclusively, takes place at the retail and consumption stages in the food value chain. It is usually the result of negligence or a conscious decision to throw food away.

Losses can also be classified in terms of their utilisation/disposal which includes the yield gap between what farmers are actually producing/harvesting and what was possible if they were to use optimal management practices.Losses depend on several factors such as environmental conditions, method, and duration of storage, methods of processing, and the inherent features of the different nodes along the value chain in a given environment.

FLW across Low & High-income Countries

Food loss and waste are pervasive issues occurring at every stage along the food supply chains (FSCs). Notably, there is a distinct difference in the patterns of lost and wasted food between low and high-income countries.

In low-income countries, food loss is more concentrated at the beginning of the supply chain, particularly at the grower/harvest level. This is primarily due to challenges such as inefficient storage capabilities, inadequate cooling systems, poor infrastructure, and transportation limitations. Issues at these early stages contribute to significant food losses in low-income countries.

In contrast, high-income countries experience more food waste in the latter part of the supply chain, specifically at the retail and consumer levels. Several factors contribute to this waste, including retail practices such as supermarkets and grocery stores rejecting food due to perceived quality issues, infestations like mold, processing that results in reduced features of the initial resource, inadequate temperature conditions in warehouses or supermarkets, mishandling of products, overordering followed by cancellations, communication issues between involved parties, and lack of awareness among consumers leading to premature product discarding. Recognizing these distinct patterns is essential for designing targeted interventions to reduce food loss and waste in different global contexts.

How can we reduce FLWs?

Efficient food saving practices can be beneficial across all stages of the food supply chain. In low-income countries, there is a significant potential for increased yield each year by enhancing education and implementing improved handling practices throughout farming, processing, and storage stages. This approach aims to reduce food losses, contributing to better food security and resource utilization.

Conversely, high-income countries, exemplified by the United States, could optimize yields by automating retail ordering processes. This helps mitigate the risk of oversupply. While dealing with oversupplies through special offers and sales is common, it often transfers the burden to consumers who may take advantage of promotions, leading to surplus food that may go to waste. Educating consumers about purchasing only what they need and providing guidance on optimal storage practices for specific fruits and vegetables can significantly contribute to reducing unnecessary waste and associated carbon dioxide emissions.

Regardless of the position within the food supply chain, there is a shared responsibility to adopt purposeful actions and proactive measures, ensuring that food loss and waste are minimized at every stage.

To learn more about food loss & waste, check out PostHarvest’s free online courses.

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