[ECO]​​Creating Economic Opportunities by Reducing Food Waste

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Reading Time: 4 minutes

How entrepreneurs are turning holes in the food supply chain into profits.

The United Nations says around one fifth of all food produced will be wasted. The implications of this go beyond hunger — food waste

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up to ten per cent of all greenhouse gas emissions and is estimated to cost the world 1 trillion US dollars globally. 

Instead of being discouraged by these numbers, a network of entrepreneurs in Vancouver saw an opportunity. By diverting this food from landfills, companies are turning a profit while feeding those who need it.

“We know we don’t necessarily have a food shortage problem. We have a food connection problem,” says Megan Czerpak, head of Communications at

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, one of the hubs of food transfer. 

Vancouver throws away 13,000 tons of edible food annually, and around 50% of food produced in Canada will not be eaten. The massive waste is assumed to be a normal cost of operating for restaurants and grocery stores paying for regular food disposal.

By charging competitive fees for food removal, startups like FoodMesh and

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can save food distributors money while diverting food to charities, livestock farmers, and composting operations.

“Being aware of the problem is a challenge. And then sometimes figuring out the logistics of getting it from A to B, and that’s hopefully where we come in to help them up,” says Czerpak. “I think it truly takes a network to create that change.” 

Food waste is expected—it’s normal for some food to go bad or be damaged. However, about 13% of food waste occurs from cracks in the supply chain between harvest and *****. 

Repairing the supply chain goes beyond feeding people. It also means land, fertilizers, water, and energy expended to produce food aren’t wasted.

Food waste is widely

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, and food recovery organizations have refined water as a commodity—a key to building circular economies. Currently, urban centers are a fertile ground for finding enough food to turn profits, but opportunities to save food exist throughout the supply chain.

One example is farmers attempting to hit projections given to them by their customers or distributors. Inaccurate predictions, along with fluctuating food prices and unpredictable weather patterns, mean farmers can be left with food they cannot easily sell. Weather events in a changing climate add further uncertainty. 

A connection with food recovery services could upcycle food that would otherwise never leave a farm. Currently, farmers hedge these risks with insurance. If a weather event damages a crop, farmers can be compensated, but currently, insurance companies often do not allow damaged food under an insurance claim to be donated. 

Insurance is but one example of how revisions of policy and business practices might one day open new avenues for food recovery. 

“I think an opportunity will be to see some regulation around it. I think all the time that food businesses are not required to redistribute their surplus food,” says Czerpak of improving the situation in Vancouver. While bylaws encourage residents to put organic in green bins, no laws yet hold businesses accountable.

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Another opportunity for optimizing food consumption amongst big businesses and consumers is understanding expiration dates. 

True expiration dates are rare in North America and are focused on the degradation of nutrients, not food safety. Official expiry dates can be found on a select few products like infant formula or supplements which can degrade below certain nutritional levels, but the vast majority of products like fruit, vegetables, meat, and dairy are labeled with best before dates.

Best before dates are focused on quality and in North America are set by producers of most products, not the government. Manufacturers look to preserve brand reputation and give consumers the best experience when setting date codes.

Dates are focused on optimal freshness. On average, they are about 20% less than the time it takes for an item to go bad. Customers and stores use these dates to restock shelves and to throw away food, while in many cases, food would still be safe to eat.

Organizations are increasingly aware of food waste but changing the status quo can be difficult. The activity is sometimes blocked, with agreements between suppliers and distributors including instructions that expired food cannot be donated. 

Even well intentioned businesses can be concerned about liability, fearing donating food could cause an illness. However, in North America, Good Samaritan laws generally protect organizations that donate food in good faith.

See also:

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All this isn’t to say expiry dates should be ignored, only that they are conservative. Dates on products like meat, fish and dairy clearly have utility and do protect consumers. Proper education about food labelling, along with standardized labeling practices could greatly support circular economies with food waste.

There is still a lot of work to be done, but the word is spreading. As Czerpak says, “It’s really important to say to acknowledge that the outstanding organizations are all playing a role in this, whether it’s upcycling, whether it’s other food recovery organizations, the charities who are doing the hard work of redistributing the food, helping to meet that need of all people who really need it, as well as the businesses who actually taking a stand”

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