Wednesday, September 22, 2021

How to tackle the global food waste ..

Food waste is one of the most cruel and wasteful activities in the world, because daily millions go to bad hungry and the food that could have been take by them is now being wasted. Why does food waste happen and what are the steps that can be taken to avoid this food wastage. We carried out an interesting case discussion at Alliance School of Business Bangalore in the MBA third semester classroom.

According to the Guardian, approximately 45% of all fruits and vegetables, 35% of fish and seafood, 30% of cereals, and 20% of meat and dairy products are wasted by suppliers, retailers, and consumers every year. : Unquote

Click here to read the HBR article How large food retailers can help solve the food waste crisis by Yasemin, Jaideep and Mark, HBR December 2017.

The main points in the above article are given here. Helping retailers tackle the food wastage problem involves the four points as given here.


#1. Upgrade inventory systems with the latest technology.

       Software are programmed input systems in the order in which they are in kept in the shelves.

#2. Partner with farmers in the supply chain.

      Treat farmers as partners.

#3. Modify or eliminate traditional store practices that increase waste.

      Centralised storage does it result in wastage or helps in costs savings

      Product labeling Best by dates are misleading.

#4. Team up with consumers. 

      Higher disposable income with youngsters has resulted in high food waste. 

In the Guardian article on the UN report (click here) of 2017, and quoted in the HBR article, it was mentioned about the stark difference in the food waste pattern between the rich developed and the poor developing and less developed countries. While the rich countries wasted almost 78-95 kgs per head, in the developing countries it was only about 6-11 kgs per head.

The latest Guardian article in 2021 pains a still grim picture. (click here)  It says we inhabitants of planet earth waste almost a billion tonnes of food a year and it is almost 78 kgs of food per person per year.

Based on the above HBR article at Alliance University, Bangalore we had a class discussion. The students have work experience, have finished their internship in top industrial and retail groups.

The students were very much interested in discussing why and how food waste occurs. Why does food waste occur - 

CAUSES : 

1. Consumerism - people tend to buy more than what they need and the excess is wasted, youngsters generally tend to over estimate their needs. Youngsters have more choice of food and tend to splurge on food.

2. Poor infrastructure for preservation - the poor availability of food preservation equipment like deep freezers, refrigerators, refrigerated containers (reefers) and refrigerated transport vehicles leads to food wastage

3. Agricultural management - Planning the growth area, use of good seeds, modern equipments for tilling, harvesting etc.

4. Poor warehousing capability

5. Buffets are a major source of waste unless it be a hotel where the excess food could be reused. Public place buffets result in food wastage.

6. Expensive food portions offered by superior hotel chains tend to waste lot of food items in order to prepare the best and expensive food portions

7. Hoarding is resorted to by the traders, middlemen and consumers anticipating either an increase in prices or fall in supply

8. Arrival of privatisation of agriculture by corporate giants like Reliance, ITC, Tata etc dictates the planting and cropping pattern based on market needs than natural cycle s

9. Non optimised and mismanaged supply chains lead to frequent shortages and excesses at different parts of the supply chain leading to bull whip effect and consequences

10. Mismanaged Warehouses leads to wastage due to climatic disturbances, rodents etc.

REMEDIES

1. Local produce should be consumed locally and excess can be exported leading to low supply chain costs

2. beginning cooperative movements in agriculture like what we have in dairy sector 9the AMUL model)

3. Have a list of items to purchase before going to super markets, do not get influenced by the looks and colours inside the shop

4. Keep a focused mind not to waste  food, waste not, want not ..

The discussion has helped students to understand the problems caused due to food waste, the reasons and the basic steps to prevent it. 

George.

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