Investing in food waste prevention can be profitable: Rabobank


Every euro invested in combating food waste yields 14 euros for companies. This was the result of a study conducted by the World Resources Institute (WRI) and RaboBank conducted among 700 companies in 17 countries. The study inferred that it is financially worthwhile to invest in combating food waste.

“Looking at the food chain from farm to fork, most wastage occurs within and between F&A companies during agricultural production, post-harvest handling and storage, processing and distribution. For almost every type of food, producers account for more than half the loss of value,” says Rabobank F&A (Food & Agriculture) supply chain analyst Paul Bosch.

According to Rabobank’s report, the potential value of innovation in F&A is significant. There are three main areas where innovation can tangibly help: harvesting and handling crops, packaging food and monitoring fresh produce.

Food waste is responsible for an estimated 8 per cent of annual greenhouse gas emissions, tackling this challenge can help lower emissions and meet commitments to the Paris Agreement.

According to Rabobank’s latest report, it is vital that the industry looks to address the issue and F&A companies have much to gain themselves from doing so. Rabobank sees innovation as the most effective means of making an immediate difference to reducing waste. However, for it to be successful, optimisation of supply chain processes and business models may be required.

For example, companies can invest in new machinery to harvest greater volumes whilst reducing bruising or damage to the crop. Better use of packaging can also protect against damage, whilst monitoring can give producers information about food freshness to optimise sales and availability.

While the initial benefit of implementing innovation is reducing waste, there are other essential benefits for processors. These include: improving product consistency, enhancing inventory management and increasing flexibility in logistics.

Rabobank suggests food processors and retailers should start to select partners who see the benefit in reducing waste and have the potential to benefit from the additional effects on the supply chain. Nevertheless, companies should realise that innovation is not for all partners, but an asset that will attract like-minded companies and markets to becoming supply chain partners.

Uttara is a correspondent with Indoasiancommodities. You can write to her on


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