By: Maggie Anderson, Intern
As food waste is often thought of as the product going to the landfill, however, it is also the multiple resources used to grow and sell those products that are wasted as well. This results in significant monetary losses along the entire supply chain, provoking economic burdens on all levels. By understanding and addressing this problem, households and communities can reap substantial financial benefits while simultaneously improving public health outcomes.
The scale of food waste is staggering, with global annual costs estimated at $940 billion. In the United States alone, the average family of four discards approximately $1,600 a year in produce. This waste not only affects individual households but also has far-reaching economic implications:
Resource Costs:
The Food and Agriculture Organization of the United Nations (FAO) estimated annual losses of $1 trillion from resource costs from wasted resources in food production. It is estimated that around 14 percent of food produced is lost between the harvest and retail stages. Despite enough food being produced for all and a large percentage of it going to waste, some still do not have access to substantially nutritious food, leading to deficiencies, hunger and malnutrition. The resource cost amount considers the labor, material resources, time and energy used during the production process.
Environmental Costs:
The environmental impact of food waste, including factors like carbon emissions, land use, and water costs, along with the semi-quantifiable cost factor of biodiversity, totaling to an estimated amount of $700 billion per year. The EPA reports that food is the primary component of U.S. landfills, making up about 22 percent of municipal solid waste. Managing these landfills comes with high costs, which are usually borne by municipalities and, therefore, taxpayers. Additionally, taxpayers bear the burden of the environmental cleanup and health consequences of food decomposition. As food decomposes, it releases methane, a greenhouse gas more potent than carbon dioxide. A study found that “emissions from food waste, such as hydrogen sulphide, ammonia, and volatile organic carbons, can affect human endocrine, respiratory, nervous, and olfactory systems”. An increase in health complications within a community may lead to higher healthcare costs for individuals and communities. Addressing these environmental challenges requires funding, which often comes from the affected communities themselves.
Social Costs:
Food waste contributes to higher food prices, disproportionately affecting lower-income individuals and potentially leading to nutritional deficiencies. Micronutrient deficiencies can lead to both visible and severe health conditions, as well as more subtle reductions in energy, mental clarity, and overall ability. These deficiencies can subsequently cause poorer educational performance, decreased work productivity, and an increased vulnerability to other health conditions and diseases. Only part of the population has sufficient access to food, some even surplus, while others do not have access to buy quality food. Studies have shown that the essence of a satisfying and fulfilled life lies not in the quantity of commodities possessed, but in rich social interactions, gratifying employment, and adequate time for oneself.
When combining these factors, the FAO projects a total annual cost of $2.6 trillion from America’s food waste.
Economic Benefits of Reducing Food Waste
Reducing food waste can lead to significant economic benefits for both households and communities. By minimizing food waste, families can save a substantial amount of money annually. The $1,600 saved by an average family of four could be redirected towards other essential needs or investments. Meal planning, taking inventory of your kitchen and creating grocery lists are a few ways to decrease the amount of money you spend on food waste. Taking these steps before going grocery shopping also helps you avoid buying things you don’t need. With the amount of food waste reduced and families spending less on food, it can stimulate local economies through increased spending or saving, boosting the community economy.The economy within the community can also improve as there is a possibility of employment opportunities arising. Initiatives focused on food waste reduction and redistribution can create new employment opportunities in areas such as food recovery, composting, and innovative food preservation technologies.
One way food waste can be reduced is through the Food Date Labeling Act (FDLA), this act aims to address confusion around date labels on food products and reduce unnecessary food waste. By establishing a standardized national system that uses only two clear labels: “BEST if used by” for quality and “USE by” for safety. By eliminating ambiguous “Sell By” dates and clarifying label meanings, the FDLA could significantly reduce food waste—potentially diverting 398,000 tons annually and providing an economic benefit of $2.41 billion. This initiative not only helps consumers save money by preventing premature food disposal but also encourages food donations and enhances overall food security.
By implementing these strategies, households and communities can significantly reduce food waste, leading to substantial economic savings and improved public health outcomes. The ripple effects of these actions can contribute to a more sustainable and equitable food system, benefiting both people and the planet.