Food losses in food value

chains – analysing causes

and identifying solutions

Methodology

Food Loss Analysis: Causes and Solutions – Case studies in the Small-scale Agriculture and Fisheries Subsector

How to assess the causes, impacts

and solutions?

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Why case study?

Quantity estimation

Major causes

Exact causes

Most important losses in chain

Impact of solutions

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Case study

Literature review and statistical data

• One-moment recording

• Specific food supply chain, specific season

– NOT a national subsector study

• Different time and location: different situation

Characteristics

Many case studies;Different locations

Trends & solutions

Investment programs; Interven-tions

FL reduction programs & strategies

SAVE FOOD - STUDY TO A FOOD LOSS REDUCTION PLAN

Uniform Methodology- identification of

‘Critical Loss Points’- recognition of

‘Good Practices’

Strategy formulation- National validation workshop - National food loss reduction strategy

• Understanding the FVCs in the subsector– Qualitative understanding of the range of losses– Indicative, quantitative data for loss assessment

• Selection of FVCs for Surveying and Sampling

• Secondary data – sourced from reports, docs..• Key informant interviews – experts

�Mapping the FVCs in the subsector and actorsRanking the FVC – economic impact, food security, national development objectives

Screening

Survey / Sampling

SurveySurveySurveySurvey

• Careful observations in

the field

• Interview with the FVC

actors

– Semi-structured interview

– Key informant interview

SamplingSamplingSamplingSampling

• Actual measurements of

losses along the chain

• Load tracking

• Identify more and clearer quantitative and qualitative information � identify CLP

• Magnitude of food loss - production to retail– Qualitative and quantitative

• Major task and output of 3 S� find and validate CLP

• CLP: What, why? � target for solutions

• Impact on food security• Effect on the economic result of the

FC

Low loss point

Critical Loss Points

Kenya Case Study Report, FAO 2014.

• Cause finding – location and ID of causes in the FVC

• Solutions and feasibility assessment

– Propose interventions and determine technical and financial feasibility

• Integration/context of national strategies

Synthesis

• Not be more expensive than food loss itself.

• Not place a higher burden on the environment and GHG emissions.

• Make more food available to the people that need it most.

• Be socially and culturally acceptable.

Considerations on Solutions

• Food production ↔ environment, supporting ecosystems, climate change

• Adaptive capabilities

• Energy access, technologies and use

Environment and climate change

• Access to resources and services between genders

• Cultural practices

• Social position in FVC

• Female inclusion in studies

Social and gender

• Regulatory and management system

• Application of regulations

• Common practices

• Capacity of chain actors and regulatory agencies

Food safety

Essential Dimensions

banana, maize,

milk, fish

cassava,

potato, tomato

maize, sunflower,

beans

chickpea, mango,

milk, rice

cassava, maize

maize, cowpea

maize, sorghum,

cowpea

cassava, mango,

tomato

maize, rice

maize, rice

maize, groundnut

maize, teff, sorghum, wheat, beans

wheat, date, citrus, fig,

prickly pear, apple

maize, millet, cowpea

maize, potato, milk, tomato

maize, cabbage, tomato

maize

banana, leafy vegetables, maize, sorghum, tomatoes

Trinidad and Tobago, Guyana, Saint Lucia:

cassava, tomato, mango

fish

apple

tomato, grape

milk, wheat

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

B A N A N A

Murang'a, Kirinyaga, Meru, Kisii CountiesAugust – October 2012

Josephine Natecho SimiyuJames Paul Kamau Njugu

Horticultural Crops Development Authority

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

The banana subsector

NATIONAL

from small scale producers

390,000

Volume ton/yr Value $/year

Plantain (Cooking Banana) 781,000 154 million

Dessert (Ripening Banana) 520,000 117 million

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

B A N A N A

The dessert banana supply chain Harvesting

Bulking by Wholesaler

De-handing

Grading

Packaging

Ripening

De-handing

Ripening

Storage

Retail (Kiosk, hawkers,

supermarkets, institutions)

Cleaning

Transport with pick up or closed truck

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

B A N A N A

The plantain banana supply chain

B A N A N A

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Point in the FSC

Quality

reduction

(%)

Quantitative loss (%) causes

%

handled

%

losses

% of

weighed

losses

Transportation 10 Handling, overloading

Ripening 20 Temperature, oxygen

Storage 10

wholesalers 5 100 3 3Rough handling,

temperature

hawkers 40 7.5 3 temperature

streetside vendors 30 10 3 temperature

kiosks 20 8 1.6 temperature

supermarkets 10 10 6 0.6 Rough handling

Total 11.2

Quantitative and qualitative losses occurring in the dessert banana supply chain

B A N A N A

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Point in the FSC

Quality

reduction

(%)

Quantitative loss (%) causes

%

handled

%

losses

% of

weighed

losses

Transportation 30 Handling, overloading

wholesalers 10 100 0.2 0.2Rough handling,

temperature

streetside vendors 20 45 4 1.8 temperature

kiosks 20 50 5 2.5 temperature

supermarkets 10 5 2 0.1 Rough handling

Total 4.6

Quantitative and qualitative losses occurring in the plantain banana supply chain

B A N A N A

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Solutions to food losses

Critical Loss

Point

Economic loss

(USD)

Intervention to reduce

losses

Loss

reduction % / USD

Cost of

intervention

(USD)

Transportation 13,000,000 Training of Trainers40%

5,200,000158,000

Retail of dessert

banana at street

sides and kiosks

460

Cooler boxes mounted

with umbrella shades

50%

230120

4,600,000 50%

2,300,0001,200,000

Bulking at road

side2,600,000 Collection sheds 1,300,000 610,000

Handling of

dessert banana

at wholesale

market

3,100,000

Construction of pre-

cooling facilities at the

main wholesale

markets.

50%

1,500,0006,000,000

Ripening of

dessert banana20,500,000

Construction of

ripening chambers.

50%

10,300,00011,200,000

B A N A N A

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Food loss reduction strategy

1. Training / capacity building, to add on social capital, especially for traders, processors, wholesalers, retailers. Strengthen the supply chains downstream (post-farm)

2. Shorter supply chains. Minimise handling of produce in storage and distribution systems,, Mobilisation of farmers to form marketing organisations through which traders can directly access their produce.

3. Value-added processing by specialized processing enterprises, and market development, for diversified and value-added banana products

B A N A N A

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Food loss reduction strategy

4. Postharvest pest/ disease management plan

5. Technology, structures and equipment, at trader and wholesale level

6. National banana policy

7. Monitoring mechanism to estimate food losses

B A N A N A

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Embu - Meru - Nyeri -Nakuru - Uasin Gishu- Kisumu - KerichoCountiesNovember – December 2012

Hezekiah G. MuriukiJoyce M. Kiio-Mutua

M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

National productionVolume

ton/year

Value

USD/year

Raw milk - all animals 5.2 million 1530 million

Raw milk – dairy cattle (3.4 million) 2.5 million

Raw milk – zebu (14 million) 640,000

Domestic milk products in 2011

marketed through formal channels

Volume

ton/year

Value

USD/year

Fresh pasteurized milk 373,000 307 million

UHT white milk 84,000 178 million

Cultured milk 38,400 59 million

Yoghurt 36,800 113 million

UHT Flavoured milk 14,800 31 million

Powder milk 1,200 6 million

Cheese 54 508,000

95% by 1.8 million small scale dairy farmersThe milk subsector M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Milkingevening milk

Storage

Transportationto collection point

Mixing

Milkingmorning milk

Grading

Salesto trader

Grading

Transportationto milk bar / shop / hotel

Cooling / Storage Retail sales

The milk supply chain

Transportationto Collection Centre

M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Supply chain actors

M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Quantitative losses in the dairy cattle milk supply chain

Stage in the supply chain % loss%

handled

Weighed

losses %

Causes

Milking and storage

on-farm6.0 95 5.7 Mainly spoilage of evening milk

Family consumption - 35 0

Community supply - 17 0Negligible spillage due to very short

supply chain

Trader collection centres 1.5 40 0.6 No cooling facility

Co-op/ SHG 0.6 30 0.2Aluminium milk containers and

cooling facility

Traders/ Hawkers 0.9 10 0.1Transport 50 – 300 ltr of milk per day

on motorbikes

At milk bars and others 2.0 28 0.6With milk cooling system, but

expensive and unreliable power

Processors’ collection centres 0.4 20 0.1 Milk rejected by the processor

Total loss along the supply

chain7.3

M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Food loss reduction strategy

Capacity building along the milk supply chain, promoting collective milk marketing and raising awareness on ethical practices:

1. Quality-based milk payment system.

2. Training of farmers on farm management practices.

3. Training dairy industry players on hygienic milk handling and quality testing

4. Industry regulation to carry out quality surveillance of milk

M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions

Food loss reduction strategy

5. Promotion of cold chain throughout.

6. Commercialization of traditional and value-added dairy products.

7. Increased investments in rural infrastructure: all-weather roads and electricity

8. National Dairy Development Policy as internalized by the 2010 Dairy Master Plan.

M I L K

SAVE FOOD – Case Studies

Food Loss Assessments: Causes and Solutions