Food waste: the green monster at the bottom of your fridge

"Australians waste around five million bananas, which if laid end to end, would stretch approximately 1,000 kilometres, or roughly from Sydney to Melbourne."

It can be stunning to think how much of the food produced in the world never gets consumed.

According to some studies, as much as a third of the food produced globally is lost or wasted – from grain to meat to horticulture. Across almost every category.

This is concerning, given the levels of food insecurity, it is even more critical in the countries with the least efficient food supply chains.

Food waste affects every stage of the food, beverage and agricultural supply chain – from production and processing to retail and export.

In the agricultural production stage, food waste often results from factors such as overproduction, pests, disease and adverse weather conditions.

In Australia, it is estimated up to 20 percent of all food produced never leaves the farm. This can include crops that are not harvested due to quality standards, market fluctuations or logistical challenges.

About 20 percent of vegetables growing in Australia, or about 1 million tonnes a year, never leave the farm, according to one study,

It has been estimated Australians waste around five million bananas a year, which if laid end to end would stretch approximately 1,000 kilometres, or roughly from Sydney to Melbourne.

During processing, food waste can occur due to spoilage, inefficiencies and quality control issues, with losses occurring during cleaning, peeling, slicing and packaging.

The food manufacturing industry wastes about 1.2 million tonnes of food annually, according to Food Innovation Australia Limited (FIAL).

In retail, food waste can be caused by overstocking, improper storage and stringent aesthetic standards. Supermarkets often discard food which is close to its expiration date or does not meet visual standards, even if it is still safe to consume.

The National Food Waste Baseline report indicates Australian supermarkets waste around 310,000 tonnes of food annually.

Consumer behaviour plays a significant role in food waste within the household and hospitality venues. In Australia, households discard around 3.1 million tonnes of edible food each year, equivalent to around $8 billion, from over-purchasing, improper storage and misunderstanding of expiration labels.

Challenges and opportunities

This issue presents a number of challenges. Wasting food represents a significant economic loss along the supply chain, including farmers, processors, retailers and consumers. Environmentally, decomposing food waste in landfills generates methane, a potent greenhouse gas.

Wasting food means wasting other resources such as water, energy and labour. Perhaps most importantly, while large quantities of food are wasted, millions of people suffer from hunger and food insecurity.

Still, the challenge of addressing food waste can create opportunities.

Reducing food waste can save money for businesses and households and create new economic opportunities in food recovery and redistribution. Businesses can also capitalise on surplus food by donating to food banks or selling imperfect produce at a discount.

One example is OzHarvest, a leading food rescue organisation in Australia, which claims to save over 10,000 tonnes of food each year.

It collects surplus food from supermarkets, restaurants and food manufacturers and distributes it to more than 1,300 charities. OzHarvest also provided meals to those in need, helping to alleviate food insecurity in vulnerable communities.

Environmentally, converting food waste into bioenergy is a growing industry and commercial composting can turn food waste into valuable compost for agriculture.

Richgro, a Western Australia-based company, has invested in an anaerobic

digestion plant that converts food waste into renewable energy. The facility processes up to 35,000 tonnes of food waste annually, generating enough electricity to power 3,000 homes.

This not only diverts food waste from landfills but also provides a sustainable energy source, showcasing the potential for commercial bioenergy from food waste.

A pervasive issue

By understanding the extent of the problem and recognising the opportunities to address it, we can all take meaningful steps to reduce waste.

This saves money and resources and contributes to a more sustainable and equitable food system. It is essential to continue innovating and implementing best practices to minimise food waste in the future and to maximise the efficiency of our supply chains.

Next time you think about leaving your crusts, remember Australians throw away nearly 1.3 billion slices of bread each year, ANZ calculates. If stacked up, it would create a tower over 1,000 kilometres high – or the makings of a really impressive sandwich.

Gerius Karam is Head of Food, Beverage & Agribusiness with ANZ Institutional