Costs of food waste along the value chain: Evidence from South Africa: Presentation

Abstract

We estimate the costs of food waste throughout the entire food value chain, from agricultural production through to consumption at the household level, in economic terms. First, food waste at each stage of the value chain was quantified in physical units (tonnes) for various food commodity groups. Then, weighted average representative prices (per tonne) were estimated for each commodity group at each stage of the value chain. Finally, prices were multiplied by quantities, and the resulting values were aggregated across the value chain for all commodity groups. In this way, the total cost of food waste across the food value chain in South Africa was estimated at R61.5 billion per annum (approximately US$7.7 billion); equivalent to 2.1% of South Africa's annual gross domestic product. The bulk of this cost arises from the processing and distribution stages of the fruit and vegetable value chain, as well as the agricultural production and distribution stages of the meat value chain. These results therefore provide an indication of where interventions aimed at reducing food waste should be targeted.