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Reality of Food Losses: A New Measurement Methodology

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  • Delgado, Luciana
  • Schuster, Monica
  • Torero, Maximo

Abstract

Measuring food loss, identifying where in the food system it occurs, and developing effective policies along every stage of the value chain are essential first steps in addressing the problem of food loss in developing countries. Food loss has been defined in many ways, and disagreement remains regarding proper terminology and measurement methodology. Although the terms “post-harvest loss,” “food loss,” and “food loss and waste” are frequently used interchangeably, they do not refer consistently to the same aspects of the problem. In addition, none of these classifications includes pre-harvest losses. Figures regarding food loss remain highly inconsistent, precise causes of food loss remain undetected, and success stories of decreasing food loss remain few. We improve over this measurement gap on food losses by developing and testing the methodology traditionally used with three new methodologies that aim to reduce the measurement error in assessing the magnitude of food loss. The methods account for losses from the pre-harvest stage through product distribution and include both quantity loss and quality deterioration. We apply the instrument to producers, middlemen, and processors in seven staple food value chains in five developing countries. Throughout the different estimation methodologies, losses at the producer level represent between 60 and 80 percent of total value chain losses, while the average loss at the middleman and processor level lies around 7 and 19 percent, respectively. Differences across methodologies are salient, especially at the producer level. While the estimation results from the three new methods implemented are close and the differences are mostly not statistically significant, the aggregate self-reported method reports systematically lower loss figures. Finally, our results show the major reasons behind the losses identified for each commodity and country. Specifically, we find that they included pests and diseases and lack of rainfall. When looking at the produce left in the field, the major reason for the loss is a lack of appropriate harvesting techniques. Finally, the loss reported at the post-harvest level is due mostly to damage done during selection, as a result of workers’ lack of training and experience in selecting the produce. Therefore, technology, improved seeds and the proper soil management techniques together with better market access could help to substantially reduce the losses at the producer level.

Suggested Citation

  • Delgado, Luciana & Schuster, Monica & Torero, Maximo, 2017. "Reality of Food Losses: A New Measurement Methodology," MPRA Paper 80378, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:80378
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    File URL: https://mpra.ub.uni-muenchen.de/80378/3/MPRA_paper_80378.pdf
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    References listed on IDEAS

    as
    1. Kaminski, Jonathan & Christiaensen, Luc, 2014. "Post-harvest loss in Sub-Saharan Africa -- what do farmers say ?," Policy Research Working Paper Series 6831, The World Bank.
    2. de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
    3. repec:oup:ajagec:v:99:y:2017:i:5:p:1148-1158. is not listed on IDEAS
    4. World Bank, 2011. "Missing Food : The Case of Postharvest Grain Losses in Sub-Saharan Africa," World Bank Other Operational Studies 2824, The World Bank.
    5. Buzby, Jean C. & Farah-Wells, Hodan & Hyman, Jeffrey, 2014. "The Estimated Amount, Value, and Calories of Postharvest Food Losses at the Retail and Consumer Levels in the United States," Economic Information Bulletin 164262, United States Department of Agriculture, Economic Research Service.
    6. Venkat, Kumar, 2011. "The Climate Change and Economic Impacts of Food Waste in the United States," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(4).
    7. Gang Liu, 2014. "Food Losses and Food Waste in China: A First Estimate," OECD Food, Agriculture and Fisheries Papers 66, OECD Publishing.
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    More about this item

    Keywords

    Losses; Value Chains; PHL; Food Loss and Waste;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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