It is a well-known fact that a 1/3 of all food produced is wasted and for the first time since initially published, the 2020 World Economic Forum Risk Report included food waste and the biodiversity crisis, among the most perilous risks over the next ten years. It’s now been recognised that the risks associated with food waste are no longer solely an ethical concern but extend to use of resources and climate change impacts, brand reputation, operational efficiencies, regulation, and value creation.
The impact of the food industry on this growing problem is unavoidable, with some amount of loss expected at every stage of production - intensified further by globalisation and increased demand.
Although this issue has been somewhat ignored in recent history - an accepted by-product of production - consumers are beginning to make waves with their buying habits,- steering clear of brands that have no plans to tackle food waste. Interestingly a recent report from The Economist revealed 85% of consumers were more likely to buy from a company with a reputation for sustainability than from a neutral company if their prices were equal.
Shockingly the United Nations Food Waste Index report in 2019 revealed that 931 million tons of edible food was wasted on average worldwide annually, and worse this figure is set to rise by a further 1.9% by 2030. With the severity of the situation worsening, we have highlighted the top causes of food waste in food supply chains and importantly, why it’s time for the industry to make a change!
What Causes Food Waste in Supply Chains
Unrealistic Aesthetic Standards
In order to satisfy consumers and maximise returns, perfectly good product, is often removed from production or shop shelves due to appearance alone, reports revealing that around 20% of produce gets thrown out for cosmetic reasons. From farm to distribution, food items undergo rigorous inspection with the smallest flaws leading to rejection and therefore waste. This is particularly prevalent with fresh produce, estimates showing that 1 in 5 fruits and vegetables get tossed into landfills usually due to discolouration, misshapen appearance or blemishes/bruises as a result of shipping.
It is inevitable with fresh produce that there will be variations in overall appearance and therefore continuing to push for such cosmetic standards is creating huge levels of preventable food waste. Although some retailers are making efforts to combat this waste, introducing “Ugly fruit and Veg boxes”, more needs to be done throughout the supply chain, to prevent these products going to waste unnecessarily.
Loss During Processing and Production
Often processors are unaware of the waste generated during production -offcuts and scraps are being disposed of despite being safe, solely due to many factors such as inefficient processes and poorly managed specifications. This is a common problem particularly when using legacy systems - How can processors effectively track and assess their waste when using pen and paper?
Time for Change
Environmental Clock
As the industry continues to dispose of food items at such a high volume, landfills are growing exponentially with rotting products emitting vast levels of methane that are 28 to 36 times more potent than the carbon that comes out of passenger vehicles.
Landfills are the third-largest industrial emitter of methane, with food waste alone representing and estimated 8% of total global greenhouse gas. It has become crucial for those at all stages in the supply chain to challenge how they tackle food waste to prevent such large quantities needlessly ending up rotting in landfills.
Growing Population
The current state of the food system is simply unsustainable. The reality is that 11% of the world’s population suffers from undernourishment with a food system unable to feed the current population - a population is estimated to reach over 10 billion people by 2050.
It is a shocking statistic that all of the world’s hunger problems could be solved with just ¼ of the food wasted annually throughout the UK, US and Europe, if this food were to be redistributed to those who need it. In order to combat global hunger, serious steps must be taken to reduce the 1.3 billion tons of food wasted or lost annually, to prevent further fatality and major resource shortages.
Growth of Technology to Reduce and Monitor Food Waste
The 21st century brought the evolution of technology, embedding itself into every industry to optimise manual processes – the food industry is no different. With a vast market of tools, technology is available to allow food businesses to track and monitor their food waste, creating detailed reports to analyse where they could be more efficient and highlight potential opportunities to reduce their impact.
Companies around the globe are utilising this kind of technology to power their ESG initiatives and waste reduction. The Foods Connected system offers a variety of tools to help businesses create visibility in their food waste, recognising key inefficiencies allowing them to make continuous improvements and reduce their impact.
You can read more about the Foods Connected ESG offering and tools by downloading the guide at the top right of this page.