Ripe for change: Insights, innovations, and the role of agrifood businesses in advancing food waste prevention
Summary
Food waste has long been a pressing issue in the agrifood sector, but the urgency of reducing it has never been greater. Rising costs for consumers, intensified sustainability targets, and increasingly stringent regulations are pushing producers, distributors, and retailers to confront waste head-on. To accelerate progress toward SDG Target 12.3 (Halve Global Per Capita Food Waste), the EU Commission has proposed legally binding food waste reduction targets for Member States by 2030, requiring a 10% reduction in processing and manufacturing and a 30% per capita reduction in retail and consumption. Yet, achieving this demands more than conventional methods—it requires innovation, digitization, and a fundamental shift in industry mindset.
This article draws on recent industry insights and trends highlighted in an interview with Nishit Agrawal, the co-founder of SkoneLabs, a Germany-based DeepTech startup focused on food quality monitoring and waste reduction through smart sensors and AI analytics. It also offers actionable steps for agrifood corporates looking to lead the transformation toward a more sustainable and profitable future.
READING TIME: 5 MINUTES
The Changing Landscape of Food Waste Awareness
It is estimated that ~32% of food waste occurs before food even reaches retailers or food services (17% on farm and 15% in manufacturing). An additional ~21% of food is wasted in food service and retail. This creates not only an environmental challenge but also a significant business opportunity for agrifood companies to improve efficiency, reduce emissions, and gain a competitive edge. WRAP, a global environmental action NGO, estimates that farmers in particular could achieve a 20% increase in profits through reduced food surplus and waste.
Until recently, many stakeholders in the food supply chain paid only limited attention to food waste, often considering it an unavoidable cost of doing business. However, several factors are changing this perception:
- Soaring Costs and Consumer Awareness:
Over the last two years, the cost of groceries has dramatically increased, e.g., the Food and Agriculture Organization (FAO) Food Price Index, tracking international prices of a basket of commonly traded food commodities, reached a historic high in early 2022. Similarly in the EU, the annual rate of change for food and non-alcoholic beverages in the Euro Area peaked at over 14% in late 2022 (Eurostat). Rising food prices have pressured both consumers and businesses to seek solutions that minimize losses and protect margins. - Stricter Regulation and Transparency Measures:
Governments are increasingly mandating stringent reporting on food waste and hygiene standards. For example, In cities like Berlin, companies must publicly disclose their progress on reducing waste, intensifying the spotlight on the issue. In France, legislation mandates that supermarkets donate unsold edible food to charities, effectively reducing food waste and promoting food security. Non-compliant stores face fines of up to €3,750 per violation. - Global Sustainability Commitments:
International pledges to reduce food waste by 50% by 2030 are looming large, challenging the entire value chain—from farmers to retailers—to adopt more sustainable practices.
Current Barriers to Progress
Despite heightened awareness, numerous obstacles slow the pace of change:
- Limited Digitization Among Mid-Sized Players:
While large retailers and top-tier suppliers are adopting digital tools, mid-sized distributors and storage facilities often remain stuck in traditional practices. This difference is further exacerbate between regions with e.g., Latin American companies still rather behind on digital transformation compared to the US. We see that even moving from paper logs to simple spreadsheets is a major step for some. As agriculture and farming are global industries, addressing these gaps is essential for driving meaningful progress worldwide. - Invisibility and Subjectivity in Quality Control:
Quality checks for produce are largely subjective and inefficient, often relying on spot-testing methods that assess only a small sample from large shipments. This approach introduces a high risk of error. Workers visually inspect a few samples to determine the quality of large produce shipments, often leading to inconsistent and overly conservative decisions that result in entire shipments being discarded to avoid the risk of "spoiled" products entering the value chain. - Cultural and Behavioral Hurdles:
The mindset within certain segments of the supply chain can be resistant to change. With longstanding family businesses and profit margins that remain stable despite waste, there is often little incentive to adopt new technologies or adjust established processes. Additionally, the global and highly interconnected nature of operations makes process changes particularly challenging to implement across the entire value chain. While targeting key "hotspots" within the value chain can be a starting point, other barriers—such as operational inefficiencies, cultural norms, and resistance to new methods—must also be addressed to drive meaningful progress.
SkoneLabs: A Case Study in Waste Reduction
SkoneLabs, a Berlin-based startup founded by Nishit Agrawal and Siddardha Koneti, aims to address these challenges with a streamlined, data-driven solution made for effortless integration. Their AI platform leverages real-time data from connected devices from the entities, be it their smart sensors or existing third-party devices/hardware to monitor key quality parameters like temperature, humidity, and air composition. With minimal setup and no major infrastructure changes, the platform's AI tools provide actionable insights to predict and prevent spoilage, enabling timely interventions that reduce waste and operational costs.
• Real-World Impact:
In one implementation within a grain storage facility, SkoneLabs’ technology helped predict conditions conducive to moth infestation. By monitoring air quality and other environmental factors, the facility improved ventilation and filtration strategies. The result was a 30% improvement in air quality and a 15% reduction in moth development.
• Scalability and Relevance:
What sets SkoneLabs apart is its potential applicability across different types of storage and supply environments. Whether it’s grains or perishable fruits, their technology aims to transform subjective, experience-based quality checks into objective, predictive analytics.
Opportunities Across the Value Chain
To truly move the needle on food waste, similar innovations must scale throughout the value chain. Early adopters often include larger grocery chains with robust IT infrastructures and established sustainability goals. However, the greatest untapped potential lies in mid-sized players who have yet to digitize their processes-particularly in regions where digitalization remains uneven, such as parts of Latin America, Africa, and Asia. With better data, these businesses can identify inefficiencies, reduce subjective decision-making, and enhance their margins while simultaneously meeting sustainability targets.
For instance, adopting digital tools like food waste estimators can significantly reduce waste. A study demonstrated that extending the shelf life of poultry meat by 40% could reduce waste by 6–7%, CO₂ emissions by 457–567 kg, and water usage by 656,571–814,149 liters per 1,000 kg of product.
Actionable Steps for Agrifood Corporates
For corporates aiming to break free from traditional waste management approaches and embrace proactive prevention, consider the following strategies:
- Invest in Digitization and Data Analytics:
- Replace paper logs and manual quality checks with digital sensors and software platforms that provide real-time visibility into product quality.
- Leverage predictive analytics to forecast spoilage and optimize stock rotation, storage conditions, and distribution timelines.
- Partner with Innovative Startups:
- Collaborate with solutions providers like SkoneLabs to pilot new technologies.
- Seek strategic alliances that complement your existing infrastructure and help accelerate implementation and scale-up.
- Encourage Organizational Mindset Shifts:
- Provide training and incentives to frontline staff to adopt new quality assessment methods.
- Highlight the cost savings and reduced environmental impact to inspire buy-in from all levels of the organization.
- Focus on Quality and Traceability:
- Implement standardized protocols for measuring quality objectively.
- Explore technologies that integrate with existing ERP systems, ensuring that quality data travels seamlessly throughout the supply chain.
- Engage Stakeholders Beyond Your Core Operations:
- Extend waste reduction best practices to suppliers, encouraging them to adopt similar monitoring tools.
- Collaborate with industry associations and attend niche fairs to connect with key players who might not have a digital presence but control significant portions of the supply chain.
Conclusion
Minimizing food waste is not only about meeting regulatory requirements or appeasing environmentally conscious consumers. It is also a compelling business opportunity. By adopting data-driven solutions, forging partnerships with innovators like SkoneLabs, and promoting cultural change within organizations, the agrifood sector can dramatically reduce waste. In doing so, these companies will enhance profitability, strengthen supply chain resilience, and contribute meaningfully to global sustainability goals.
Partner with Bright Green Partners
Whether you need strategic insights, due diligence on emerging waste-reduction technologies, or guidance through the complexities of implementing sustainable solutions, our team of experts can lead your organization through this essential transformation. With our deep expertise in sustainable food innovations, we will ensure your business is well-positioned to capitalize on these new opportunities. Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can support your journey toward a more sustainable, resilient food system.
