Economic Solutions to Global Food Waste

Abstract

Food waste imposes significant financial challenges worldwide, nationally, and at individual levels, due to both the direct loss of income and indirect expenses from squandered resources and environmental consequences. The worldwide economic impact of food waste is estimated to be around $1 trillion each year. The study was conducted by examining various reports and other publications of specialized international institutions and representatives of the expert community. The purpose of the research was to formulate possible economic solutions for the global reduction of food waste. Economic approaches to global food waste emphasize establishing financial incentives, promoting a circular economy. Economic perspectives on worldwide food waste involve shifting from a linear production model to a circular economy, aiming to enhance resource value and correct market inefficiencies. Important methods include repurposing waste into new items like biofuels or animal feed, enhancing cold storage facilities, and implementing policy measures to decrease food loss throughout the distribution network. Essential strategies comprise financial incentives for food donations, establishing markets for "imperfect" fruits and vegetables. Also of great importance is global food waste reducing utilizing technology for supply chain optimization, enhancing efficiency from production to consumption using data, AI, and better logistics to prevent food loss. Digital tracking technologies are transforming food supply chain management from a reactive to a proactive system, enabling significant reductions in global food waste. UDC: 338.439.6:502.131.1(100); JEL: Q01, Q18, Q58, L66