REDUCING ON-FARM FOOD WASTE: UNLOCKING VALUE FOR PROFITABILITY & SUSTAINABILITY

The Challenge 

The horticulture sector is the third highest (17%) in economic value among agricultural industries, but it is accountable for about 50% of the total volume of food waste in Australia [1, 2]. Australia loses 18 to 22% of total horticulture production pre-retail [1] with an estimated loss of $2.5B in fruit and vegetables [3]. If Australia is to reduce its food waste by half by 2030, it must deal with horticulture food loss and waste.  

When food is wasted on farm, all the inputs used to grow it — water, fertiliser, labour, energy, and land — are also wasted. Each year, Australian horticulture growers report 14–38% of crops lost on farm, depending on crop type [4 ]. Evidence from comparable international markets shows that implementing food waste avoidance strategies can increase grower profitability by up to 20% [5]. Beyond the environmental and social impact, food waste represents a major lost income opportunity for growers. 

Reducing on-farm food waste is therefore one of the largest untapped opportunities to improve productivity, profitability, and sustainability in Australia’s food system. 

The Plan 

The Reducing On-Farm Food Waste: Unlocking Value For Profitability & Sustainability project follows previous EFW CRC project 2.4.3 Horticulture Sector Action Plan covering several priority actions identified by that work.  

This project brings together End Food Waste Australia (EFWA), Horticulture Innovation Australia (Hort Innovation), and EFW CRC research partners, in collaboration with growers and supply chain stakeholders across Australia, to deliver practical, evidence-based solutions that help growers reduce food waste and create value from surplus and non-standard produce. 

Key activities include: 

• Consumer testing regarding produce specs; informing approaches to review and apply product specifications that minimise food waste and maximise grower profit; 

• Demonstration of commercially viable options for value-adding to surplus and out-of-spec produce to increase grower profit; and 

• Development of a ‘Grower Knowledge Database’ to make tools, training, and industry guidance accessible to all growers. 

Upon completion of this project the following outcomes are expected: 

• growers are equipped with knowledge and have access to, tools and techniques to prevent and reduce on-farm food waste  

• evidence-based information/knowledge of consumer expectations and tolerance regarding food specifications, to provide insights for approaches to review and apply product specifications that minimise food waste and maximise grower profitability  

• commercially viable options for value-adding to surplus and out-of-spec produce to increase grower profitability identified and tested. 
• food waste reduction is able to be quantified and where appropriate, benefit-cost considerations quantified.

EFW CRC Research Partners involved in the delivery of the project include the Queensland Department of Primary Industries (QDPI), South Australian Research and Development Institute (SARDI) and The University of Queensland (UQ).  

Broadly, QDPI will deliver all works associated with product specifications, consumer testing, secondary markets and value‑added food products; SARDI will deliver all works associated with formulated animal feeds; and UQ will deliver all works associated with soil amendments. 

Project HN24001 Reducing on-farm food waste and unlocking its value for grower profitability and sustainability is funded through Hort Innovation Frontiers with co-investment from End Food Waste Cooperative Research Centre, whose research activities are funded by the Australian Government’s Cooperative Research Centre (CRC) Program, Queensland Department of Primary Industries, South Australian Research and Development Institute (SARDI), the University of Queensland and contributions from the Australian Government. We also acknowledge the in-kind support of the project’s partners, researchers, growers, and industry participants. 

See the program webpage for further updates: endfoodwaste.com.au/horticulture

Sources:

1. Department of Agriculture, Fisheries and Forestry (DAFF), 2023, Snapshot of Australian Agriculture. 
2. FIAL (2021). National Food Waste Strategy Feasibility Study
3. Lapidge (2015). Primary Production Food Losses: Turning Losses into Profit; ABARES 2024; End Food Waste Australia analysis
4. Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES), 2023, Crop loss/waste on Australian horticulture farms. 
5. WRAP, 2021, Banbury, Financial implications for farm enterprises of reducing food surplus and waste (FS&W), Prepared by Birnie Consultancy & WRAP.