New research on behalf of the coalition Champions 12.3 finds that for every $1 companies invested to reduce food loss and waste, they saved $14 in operating costs. The report finds that household savings could be much greater.
In a first-of-its kind analysis, “The Business Case for Reducing Food Loss and Waste” evaluated financial cost and benefit data for 1,200 sites across 700 companies in 17 countries, finding that nearly every site realized a positive return on its investment to reduce food waste. The types of investments companies made include: quantifying and monitoring food loss and waste; training staff on practices to reduce waste; changing food storage and handling processes; changing packaging to extend shelf life; changing date labels; and other staff and technology investments.
The 14:1 return on investment comes from not buying food that would have been lost or wasted, increasing the share of food that is sold to customers, introducing new product lines made from food that otherwise would have been lost or wasted, reducing waste management costs, and other savings.
“What this research shows is that there’s now no social, environmental, or economic reason why we should not come together and take action to reduce food waste,” said Dave Lewis, group chief executive of Tesco and chair of Champions 12.3.
The research also finds that savings for consumers could be even larger. From 2007 to 2012, the United Kingdom ran a nationwide initiative to reduce household food waste. This included consumer education through the “Love Food Hate Waste” campaign via in-store messaging on proper food storage and preparation and use of leftovers; product innovations like resealable salad bags, changes to pack size and formats and date labeling; and financing to establish baseline data on food waste and monitor progress on reduction.
During this period, for every £1 the government, companies, and the non-profit organization WRAP invested in these efforts to curb household food waste, consumers and local government saved £250. During the first five years of this initiative, avoidable household food waste was reduced by 21%. Figures released for 2012–2015 show that progress has stalled, which emphasizes the need to regularly evaluate, review, and adjust approaches to food waste reduction.
NEWS REFERANCE: IFT
