“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 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. Through these, companies can realise up to EUR 10 billion of savings by using new approaches to reducing food waste.

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.

However, some packagers and growers may feel they have few incentives to invest in the necessary technology. Reduction in food waste, after all, may result in retailers buying less product.

While the initial benefit of implementing innovation is reducing waste, there are other essential benefits for processsors. These include: improving product consistency, enhancing inventory management and increasing flexibility in logistics. Valorising these benefits is key to reduce foodwaste in a profitable way.