How Businesses Can Take the Lead in Minimising Food Waste?

Food waste has become a pressing global issue, with India experiencing significant losses from farm to fork. Himanshu Pathak, Director General of the Indian Council of Agricultural Research (ICAR), estimates that 20-25% of food is wasted in India, including cooked food. Technological interventions could reduce this wastage by 10-15%. The environmental consequences of food waste are substantial, especially as more people struggle with food insecurity.

The food industry plays a pivotal role in addressing this challenge. Businesses can make a significant impact by adopting innovative solutions, fostering collaboration, and influencing consumer behavior. On September 29, 2024, the UNDP Saudi Arabia Country Office and Balad Alkhieer Endowment Foundation joined forces to commemorate the International Day of Awareness of Food Loss and Waste. This event, a precursor to UNCCD COP16, highlighted the urgency of sustainable environmental waste management and its role in achieving the Sustainable Development Goals (SDGs).

The Green Circle Initiative, dedicated to addressing Saudi Arabia's environmental challenges, organized this event as a platform for exchanging innovative ideas and developing practical solutions. Through "Circles of Solutions," the initiative aims to foster collaboration and create a sustainable future for Saudi Arabia.

Understanding the Causes of Food Waste

The primary causes of food waste often begin early in the food supply chain. A large portion of waste occurs during the production, transport, and storage stages. Factors such as weather conditions, pests, and inefficient farming practices contribute to the loss of crops. However, human inefficiencies in processing and distributing food tend to worsen the problem. Poor inventory management and misaligned supply and demand cycles lead to excess food being discarded. Retailers and food service providers often throw away food items that are near expiration dates or do not meet aesthetic standards, even when the products are still perfectly edible.

Benefits of Reducing Food Waste

Reducing food waste offers numerous benefits to businesses beyond environmental impact. When waste is minimised, operational efficiency improves, leading to lower production and disposal costs. Businesses that focus on sustainability also appeal to eco-conscious consumers, enhancing their brand image and fostering customer loyalty. These efforts, combined with financial savings from reducing waste, create a strong business case for adopting waste-minimising practices. As more consumers seek out brands that align with their values, businesses with sustainability at their core will remain competitive and relevant in the market.

Best Practices for Food Waste Management

A major opportunity for businesses to minimise food waste lies in supply chain management. A more efficient supply chain can help reduce spoilage, improve production cycles, and ensure that food reaches consumers while it is still fresh. Technology has a significant role to play in tracking inventory more accurately and predicting consumer demand patterns. Businesses can use data-driven insights to manage stock levels more effectively, avoiding overproduction and preventing unnecessary waste. Improved packaging methods can also extend the shelf life of food products, ensuring they remain fresh during transportation and storage.

Just-in-time inventory management is another powerful strategy employed by forward-thinking businesses. India’s rapidly evolving B2B2C fresh fruits demand consolidation platforms aim to hold inventory for as little as six to eight hours. This approach significantly reduces waste and damage while ensuring products reach vendors at peak freshness.

Innovative packaging solutions developed in collaboration with agri-startups further extend product shelf life. These advancements provide additional flexibility in inventory management, allowing businesses to better balance supply with fluctuating demand.

Moving Toward Preventive Measures

While reducing food waste is critical, businesses should take the next step of prevention. Preventing food waste from occurring in the first place requires forward-thinking strategies that focus on forecasting demand more accurately, investing in technology that optimises the supply chain, and creating systems where excess food is redistributed or repurposed. Businesses that emphasise prevention over reduction will lead the way in creating a more sustainable future, setting an example for others to follow.

Rohit Nagdewani, Founder, ‘Fresh From Farm’ said, “Businesses have a critical role in reducing food waste through innovative strategies. Sustainable practices, such as improving supply chain management, better inventory practices, and enhancing food storage, can have a meaningful impact. Encouraging collaboration across the industry and investing in technology to predict demand will also help manage food efficiently. Consumer education on purchasing habits and proper storage is another key area where businesses can lead efforts. Every step taken to reduce waste creates a positive shift, benefiting both the environment and communities.”

Road Ahead

Businesses hold the power to shape the future of food sustainability. Addressing food waste is not just an environmental necessity but an opportunity for innovation and leadership. As businesses continue to adopt waste-reducing strategies and collaborate with others in the supply chain, the food industry can move toward a model where waste is minimized and resources are optimised. The focus should extend beyond the immediate challenge of reducing waste to building a food system where waste is prevented from occurring in the first place. The collective impact of such efforts will not only benefit businesses but also contribute to a more sustainable and equitable world for future generations.