Food losses in international trade : case studies from Asia and the Pacific

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Date
2023-12
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Trade, Investment and Innovation Division
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Bibliographic Managers
No. 98
Abstract

Food losses in international trade have high socio-economic costs, impacting food security, waste management, and climate change. The Food and Agriculture Organization (FAO) reported that around 800 million people face food shortages and that one-third of all food, amounting to 1.3 billion tons annually, spoils worldwide – this figure is expected to rise to over two billion tons by 2030. The FAO’s Food Loss Index indicates that about 14% of food is lost from post-harvest to the delivery at the last trading point, excluding retail losses. As such, reducing food losses associated with international trade could significantly alleviate world hunger and improve food security.

Both developed and developing countries experience food losses, with a significantly higher magnitude in developing countries. The main reasons for greater food losses in these countries include inadequate trade logistics, poor storage and handling, unfavourable climate, infrequent transport services, outdated storage facilities, lack of cold chain infrastructure, sub-standard packaging, limited market knowledge, inefficient marketing institutions, and losses due to non-compliance with quality and sanitary-phytosanitary standards.

This publication not only identifies the critical challenges faced by developing countries in managing food losses in international trade but also offers a nuanced understanding of the complex interplay of factors contributing to these losses. Each chapter serves as a detailed case study, providing valuable insights into the specific conditions and practices in different countries, and collectively they paint a broader picture of the scenario that developing countries face in the region.

Chapter 1 focuses on India’s food trade uncovers the intricate journey of food products from packing to delivery, excluding final retail. The in-depth analysis based on a primary survey of India’s three largest traded food products sheds light on the nature, causes, and stages of food losses. The study’s findings are particularly relevant for policymakers and stakeholders in developing countries, offering a roadmap for reducing food losses through tailored measures at various levels of the supply chain.

In Chapter 2, the examination of Indonesian tuna exports highlights the impact of differing international standards and regulations on food losses. The study underscores the importance of harmonizing standards and improving the understanding and dissemination of these standards among stakeholders in the tuna trade. It suggests that addressing both the micro-level issues, such as improving post-harvest handling and sanitation, and macro-level challenges, like the complexity of non-tariff measures, can significantly reduce food loss in this sector.

Chapter 3 provides an insightful analysis of Sri Lanka’s agricultural trade. By using the Standard Compliance Analytics of the United Nations Industrial Development Organization, the research identifies significant rejection rates at Sri Lankan borders. The study emphasizes the need for enhanced awareness among exporters and government officials about both domestic and international regulations, suggesting that improving infrastructure in the agricultural value chain can play a crucial role in reducing border food losses.

Lastly, Chapter 4’s exploration of Bangladesh’s fruit and vegetable trade underscores the dire need for infrastructural improvements, including cold storage systems and specialized transportation facilities, to combat food losses. The paper calls for a multifaceted approach, involving compliance with agricultural best practices, effective post-harvest handling, and governmental support to foster a conducive environment for reducing food loss.

Together, these chapters offer a comprehensive perspective on the various dimensions of food losses in international trade, particularly in developing countries. They highlight the need for concerted efforts at both national and international levels to address this critical issue. The strategies and insights presented are not only academically valuable but also practical, providing a foundation for future policymaking and implementation aimed at reducing food losses, enhancing food security, and ultimately contributing to the Sustainable Development Goals.

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