Published Monday 27th January 2020

As more and more information is accessible online, the scope for environmental consciousness is expanding. Consumers are more aware now than ever before about how food is produced and how the environment is affected in its creation and transportation.

With this in mind, businesses are feeling the pressure to start examining areas of unnecessary environmental damage in their food supply chains.

According to the Food and Agriculture Organisation of the United Nations’ 2019 State of Food and Agriculture (SOFA) report, an estimated 14% of the food created in the world is misplaced in between its initial harvest and retail trade. In this article, we examine the areas where waste could be potentially reduced in the food supply chain.

Contributing Factors for Food Waste

The FAO 2019 SOFA report revealed that the most significant factors for food waste created include:

  • The desire for aesthetically pleasing produce.
  • Products which do not have a sufficient shelf life.
  • The habit of purchasing too many products which cannot be stored sufficiently at home.

It is understood that these reasons for food waste apply more to countries which have a higher income rate. In the EU, especially, the food market has been urged to reconsider its current practices to reduce food waste.

Reports suggest that around 88 million tonnes of food are produced each year in the EU. It is believed that, in the current environment, 40% of this product doesn’t make it to the stage of selling.

How Can Business Reduce the Amount of Food Waste Produced?

The FAO 2019 SOFA report gives two distinct definitions in regards to food loss and waste. Food loss is considered when food is misplaced from the moment of harvest until it reaches the shelves for the consumer to produce. Food waste, meanwhile, is anything that is misplaced after the product is available for consumers to purchase in retail establishments.

By looking into both of these parts of the supply process in more detail, businesses can discover where their loss is occurring and how it could be prevented.

Reviewing the Supply Chain

The first step in acknowledging food loss and waste is to take a detailed look into the current supply process. This step is necessary to thoroughly understand and highlight where food is being misplaced or lost in the process.

The SOFA report helps differentiate the value of food categories. The report indicates that those who receive higher rates of loss and waste include oilseeds, tubers and roots, fruit and vegetables.

Improving Transparency and Modifying the Food Supply Chain Process

With a clearer understanding of what is happening at each step of the food chain, it should be easier to modify current practices with waste-reducing changes. However, this can be easier in theory than in practice.

It has been estimated that only 30% of companies have full control over what happens in their food supply process.

Reports have shown that if companies had more knowledge of their food production process, they would be able to reduce their amount of food waste and loss.

The areas of review are vast and will be dependent on each business. However, points which companies may want to consider could include:

  • Examining ‘empty miles’ in transit.
  • Checking the efficiency of transportation modes.
  • Reviewing the excess created from orders.
  • Reducing unnecessary stock movements between retail establishments.

The Role of Technology

An improvement in technology may be able to support successful food efficiency. By embracing the relevant technology available at each stage of the process and educating employees on its relevance and benefits, companies should be able to combat problems as and when they occur, improving cooperation across the supply chain.

At Expense Reduction Analysts, our specialist procurement experts can work to save you money in a range of areas, including waste expense management. Our detailed, long-term approach helps to develop a cost management culture throughout the business, ensuring continued procurement savings. This approach helps to unlock more capital for companies, which can prove invaluable at a time when investment is increasingly important.

If you’re interested in discovering what our team could do for you, why not get in contact with us today? If you are currently interested in the environmental consciousness of your business, take a look at our article on creating an eco-friendly warehouse.