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    Industry News

    Food Waste Costs Global Economy $750 Billion

    ...

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    11.01.13
    The waste of 1.3 billion tons of food per year is causing major economic losses to the tune of $750 billion while also wreaking significant havoc on natural resources, according to a new report from the Food and Agriculture Organization (FAO) of the United Nations.

    “Food Wastage Footprint: Impacts on Natural Resources” is the first study to analyze the impacts of global food wastage from an environmental perspective, looking specifically at its consequences for the climate, water and land use and biodiversity.

    Among its key findings: Each year, food that is produced but not eaten guzzles up a volume of water equivalent to the annual flow of Russia’s Volga River and is responsible for adding 3.3 billion tons of greenhouse gases to the planet’s atmosphere. Beyond its environmental impacts, the direct economic consequences to producers of food wastage (excluding fish and seafood) run to the tune of $750 billion annually, FAO’s report estimated.

    “All of us—farmers and fishers; food processors and supermarkets; local and national governments; individual consumers—must make changes at every link of the human food chain to prevent food wastage from happening in the first place, and re-use or recycle it when we can’t,” said FAO Director-General José Graziano da Silva. “We simply cannot allow one-third of all the food we produce to go to waste or be lost because of inappropriate practices, when 870 million people go hungry every day.”

    As a companion to its new study, FAO has also published a comprehensive “tool-kit” that contains recommendations on how food loss and waste can be reduced at every stage of the food chain. The tool-kit profiles a number of projects around the world that show how national and local governments, farmers, businesses and individual consumers can take steps to tackle the problem.

    Achim Steiner, UN Environment Programme (UNEP) Executive Director, said: “UNEP and FAO have identified food waste and loss—food wastage—as a major opportunity for economies everywhere to assist in a transition towards a low carbon, resource efficient and inclusive green economy. FAO underlines the multiple benefits that can be realized—in many cases through simple and thoughtful measures, by for example households, retailers, restaurants, schools and businesses—that can contribute to environmental sustainability, economic improvements, food security and the realization of the UN Secretary General’s Zero Hunger Challenge. We would urge everyone to adopt the motto of our joint campaign: Think Eat Save - Reduce Your Foodprint!” UNEP and FAO are founding partners of the Think Eat Save - Reduce Your Foodprint campaign that was launched earlier in the year and whose aim is to assist in coordinating worldwide efforts to manage down wastage.

    Fifty-four percent of the world’s food wastage occurs “upstream” during production, post-harvest handling and storage, according to FAO’s study. Forty-six percent of it happens “downstream,” at the processing, distribution and consumption stages.

    As a general trend, developing countries suffer more food losses during agricultural production, while food waste at the retail and consumer level tends to be higher in middle- and high-income regions—where it accounts for 31-39% of total wastage—than in low-income regions (4-16%).

    The later a food product is lost along the chain, the greater the environmental consequences, FAO’s report noted, since the environmental costs incurred during processing, transport, storage and cooking must be added to the initial production costs.
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