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Bundling innovations for food loss and waste reduction and improving livelihoods

  1. Bundling innovations for food loss and waste reduction and improving livelihoods Rob Vos 12.3 Food Loss and Waste Event IFPRI, WRI, Government of Denmark March 14, 2023
  2. Affordable food More jobs Less poverty Low env. footprint Overall objective Influence policy and market behavior for the creation of efficient, inclusive value chains with fairer income sharing, greater job creation, and adoption of sustainable practices One CGIAR Research Initiative: Rethinking Food Markets and Value Chains for Inclusion and Sustainability
  3. 1. Quality-based contractual arrangements (beans, Guatemala): • Directly incentivize farmers • Link farmers to corporate buyers (quality) • Premium for high quality beans  Impact: reduction quality loss by 7% 2. Hermetically sealed storage bags (maize, Ethiopia): • Prevent losses in storage • More cost-effective than silos  Impact: reduction quality loss by 9% 3. Solar-powered cold storage and transportation (fruits & vegetables Coldhubs in Northern Nigeria) • Women manage rental cold storage units, promote use of crates by farmers  Impact: reduction quantity loss from 30-40% to near 0% at farm & wholesale stage (still high losses beyond). Economic rate of return on solar-powered storage = 33%. Photo credits: Eduardo Nakasone, and Coldhubs Nigeria Findings from existing research: There can be simple solutions for food loss reduction
  4. Need to take a broader approach: Bundling innovations and interventions along supply chains Solar-powered cold chains for Fruit & Vegetables Inclusive VC contracting and business models • More employment and higher incomes (esp. for women & youth) • Less food loss • Affordable healthy diets • Lower GHG emissions
  5. Bundled Innovations in F&V chain in Nigeria Process innovation Off-grid cooling to reduce food loss Cold storage and transportation Plastic crates Product innovation Processing to add values (and reduce food loss) Improved quality seeds (East-West Seeds International) Improved information and transactions Market information and coordination and extension services Certification and labels (product information)
  6. So, there can be simple solutions, but getting them to work is complex because they work only if they: - Incentivize farmers to reduce food losses and improve food safety (price premium on quality will help) - Are cost effective (for farmer as well as other actors and consumers) - Work along entire value chains and leverage private initiative (storage, transport, wholesale, processing, retail) - Have a market, i.e. a market for better quality and better conserved food (quality standards may help) Photo credits: Eduardo Nakasone, Luciana Delgado, IITA, Getty Images.