Food waste in Canada is a significant challenge that affects businesses, individuals, and the environment. According to estimates, some 60% of the food produced in Canada (equivalent to 35.5 million tonnes), even though much of it is suitable for human or animal consumption. This wastage occurs at various stages of the food chain, with manufacturing accounting for a notable portion of the overall food loss.
This article explores the numerous and multifaceted costs of food loss and waste in Canada.
1. Food loss is an economic burden.
Food loss is a financial liability: it costs Canada $49 billion a year. The financial cost of food loss during production may be a key concern for some manufacturers. Others may not have paid much attention until now, but whether they are aware of the problem or not, many large-scale manufacturers could be losing hundreds, thousands, or even millions of dollars per year on discarded ingredients that are, in fact, recoverable.
2. Food loss is an urgent social concern.
Food loss is not just an economic concern; it also has important social consequences. In 2021, almost 16% of Canadian households experienced food insecurity, which translates to some 5.8 million people, 11.4 million of whom are children. And with inflation rising faster than it did in 2021, these numbers are likely to be even higher now. Food loss and waste drive up the cost of food for ordinary Canadian consumers, making food insecurity worse.
3. Food loss is an enormous environmental liability.
Food loss and waste not only incur financial costs but also have a significant environmental impact. Each ton of food sent to landfills generates approximately 2.2 tons of carbon-dioxide-equivalent greenhouse gases. Canada’s food loss alone generates 56.5 million tonnes of greenhouse gases every year. For manufacturers focused on ESG and emissions reductions, food loss exacerbates carbon footprints, hampers progress toward ESG targets, and exposes manufacturers to reputational and regulatory risks.
4. Food loss creates reputational risk for manufacturers.
With the corporate world’s focus on environmental, social, and governance (ESG) factors, environmental risks are closely tied to a company’s reputation. Within environmental risk, food loss stands out due to its significant social and environmental implications. For food manufacturers, publicly disclosing waste management data through ESG reporting frameworks like the GHG Protocol, GRI, SASB, CDP, and TCFD can potentially attract negative media attention. This is especially true for those manufacturers with high food loss profiles and insufficient plans to address the problem.
So what can manufacturers do to combat food loss and waste?
There are a number of steps manufacturers can take to reduce food loss and turn food byproducts into opportunities for positive environmental impact and additional revenue. Download our free whitepaper, Wasted Opportunity: How Food Manufacturers Can Turn A Liability Into an Asset to learn more