Food Losses and Food Waste in Mexico: quantification and some proposals for public policy
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1 World Bank- Mexico Food Losses and Food Waste in Mexico: quantification and some proposals for public policy Genaro Aguilar Gutiérrez World Bank consultant in Mexico 1
2 Objective Quantify food losses and food waste in Mexico through the formulation of a scientific methodology along with the implementation of a representative study in the State of Jalisco, to identify the main causes of the problem. Having identified the causes and magnitude, this study could be used for the implementation of public policies to address the problem in a better way. 2
3 Dimensions of the study Quantitative: FL & FW volumes Environmental: waste water and gas emissions for a food group Economic and Social: measure the costs of FL & FW 3
4 1. Calculation of a Food losses and food waste Index in Mexico The volumes of food losses and waste throughout the food chain are very high; this has implications for food security. But, How big are these food losses? It is therefore necessary to calculate the annual amount of food waste in Mexico and its environmental, social and economic impacts. 4
5 Methodology, formula and results of the quantification Food losses and food waste in Mexico in 2014 A) Development of a formula (international studies, including FAO) B) Data (ENIGH Household Expenditures Survey, SEDESOL, SAGARPA, SE) We can define apparent domestic consumption of any food product as follows: Y = National Production of Food i, in the period t X = National Exports of Food i, in the period t M = National Importations of Food i, in the period t 5
6 However, we must subtract the product wasted in the producer-consumer chain to calculate the real consumption and waste:. (2) Where: D i,t = is the national waste of the product i in period t; CR i,t = It is the real consumption of the product i, in period t 6
7 We can get an estimate of the real consumption of each product:. (3) The consumed amount of a product is the aggregate of the quantities consumed person to person:.. (4) 7
8 The consumption of each food within each household in Mexico, could be quantified by using the micro-data from the National Survey of Income and Expenditure (ENIGH)..... (5) This formula is the food loss and food waste Index in Mexico. More broadly, we need to quantify consumption in households, restaurants, schools, hotels, hospitals; and others. 8
9 In addition, we calculate the weight that each of these foods have in the diet of Mexicans. The general formula of the Food Waste Index in Mexico is: where C t is the total food intake of the Mexican population. 9
10 That is, the National Food Waste (DN) is a weighted sum of each food waste. The weighting factor is the contribution of each food type in the diet of the Mexican population* Basic data sources for calculating the national food waste and food losses are: a) the micro-data from the National Survey of Income and Expenditure in Households (ENIGH) in Mexico 2014; b) data consumption in Restaurants (restaurant industry); Hotels, Schools, Hospitals, Military installations (Defense); c) data for Apparent Domestic Consumption of food from the Agriculture Atlas 2015; SIAP (Information System of Agrifood and Fisheries by SAGARPA) 10
11 Main results: What is the level of food waste in Mexico? Weekly consumption in tons or m3 Annual consumption in tons / m3 Adding consumption in restaurants, hotels, schools, hospitals 11 Annual per capita consumption Waste (tons) Waste% Food Tortilla 160,587 8,373,470 9,956, ,857, Beef 23,191 1,209,272 1,559, , Pork 1,543 80, , , Ham 2, , , , Chicken 15, , , , Fish 4, , , , Shrimp ,512 31, , Milk 164,586 8,584,800 10,645, ,590, Potatoes 37,244 1,943,789 2,079, , Avocado 13, , , , Tomato 34,232 1,784,964 2,356, , Nopal 3, , , , Mango 20,126 1,050,378 1,176, , Apple and perón 9, , , , Guava 2, , , , Papaya 6, , , , Baby food 170 8,872 10, , Subtotal: 11,517,793 Total 20,418,
12 The total food loss and food waste in Mexico (for a group of 79 products representative of the Mexican diet) is more than 20.4 million tons per year. 12
13 What is the environmental impact of such food waste in Mexico? 13
14 2. Environment al impact Product/Food Waste (tons) Waste % Kg CO2e/kilo Total CO2e (Kg) Tortillas 2,857, ,611,566,803 Rice 249, ,304,516 Beef 552, ,053,355,155 Pork 41, ,507,572 Chicken 275, ,906,847,721 Milk 4,590, ,721,359,903 Cheese 154, ,329,877,379 Heavy Cream 47, ,108,525 Butter 5, ,029,754 Eggs 1,320, ,340,139,782 Potatoes 788, ,285,364,743 Elote 59, ,533,413 Beans 329, ,771,773 Tangerine 61, ,729,771 Mango 468, ,426,505 Apple 218, ,986,953 Melons 106, ,607,704 Orange 927, ,020,107,472 Papaya 171, ,603,979 Pear 26, ,373,922 Pineapple 50, ,018,987 Banana 281, ,470,089 Watemelon 77, ,970,977 Grapes 15, ,922,786 Juices and nectars packaged 188, ,474,684 13,865,12 6 (34.57) 36,886,460,870 14
15 13,865,126 tons (of 29 products) = 36,886,460,870 kilos CO2e 15
16 Carbon footprint or ecological footprint of food waste in Mexico A vehicle in good conditions emits on average per year, 2,500 kg of CO2e. CO2e emissions generated by the production of food that is wasted in Mexico, is equivalent to the annual emissions from 14,754,584 cars (all vehicles in DF and the states of Mexico, Jalisco and Nuevo Leon together) 16
17 3. Annual economic cost of carbon dioxide emissions for losses and food waste Waste (tons) CO2e/ Kilo Total CO2e (tons) Cost (dollars by food) Tortillas 2,857, ,611,567 $16,115, Rice 249, ,304 $6,733, Beef 552, ,053,352 $100,533, Porf 41, ,509 $3,365, Chicken 275, ,906,849 $19,068, Milk 4,590, ,721,359 $87,213, Chess 154, ,329,878 $13,298, Heavy cream 47, ,109 $2,471, Butter 5, ,030 $40, Eggs 1,320, ,340,138 $63,401, Potatoes 788, ,285,365 $22,853, Elote 59, ,533 $165, Beans 329, ,772 $6,587, Tangerine 61, ,730 $677, Mango 468, ,427 $5,154, Apple 218, ,987 $2,399, Melon 106, ,608 $1,166, Orange 927, ,020,107 $10,201, Papaya 171, ,604 $1,886, Pear 26, ,374 $293, Pineapple 50, ,019 $560, Banana 281, ,470 $3,094, Watermelon 77, ,971 $849, Grapes 15, ,922 $169, Juices and nectars packaged , ,475 $564, Total 13,865,126 36,886,459 $368,864,591.06
18 That is, the annual economic cost of carbon dioxide emissions for losses and food waste in Mexico is: US$368,864,591 18
19 4. Environmental impact: Annual amount of water lost through waste food in Mexico (24 products) 19 Food Water necessary / kilogram Waste (tons) Water wasted (liters) Tortillas 900 2,857,388 2,571,649,153,828 Soups ,863 3,128,311,699 Bread ,633,392 14,334,082,031,063 Rice , ,864,945,978 Beef ,382 8,561,923,346,618 Pork , ,676,057,166 Chicken ,955 1,655,728,846,376 Milk ,590,189 4,590,189,422,531 Eggs ,320,862 4,763,030,011,358 Potatoes , ,655,906,260 Elote ,473 41,630,895 Tomato , ,674,259,102 Tangerine and nectarine ,573 73,887,022,768 Grapefruit ,597 5,334,546,253 Mango , ,711,280,473 Apple , ,718,969,854 Orange , ,590,397,326 Banana , ,949,342,558 Grapes ,384 12,922,854,426 Sugar , ,749,175,124 Coffee ,749 14,454,354,215 Chocolate , ,077,918,511 39,860,039,784 39,860,039,784,381
20 16,523,211 tons (24 foods) = 39,860,039,784,381 liters of water 20
21 Ecological footprint of food waste in Mexico According to the National Water Commission (2014), every Mexican home uses an average of 360 liters of water daily So, the water lost in a year due to food waste in Mexico could provide water, for one year, to 303,348,857 people! (This is 2.4 times the current population of Mexico. Or, it could provide water to all Mexicans for 2.4 years). 21
22 5. Annual Economic Costs of water loss by food losses in Mexico Cost (at 0.20 dollars /m3) Cost (at 0.80 dollars/m3) Water loss by product (liters) Cubic meters Tortillas 2,571,649,153,828 2,571,649, ,329,831 2,057,319,323 Soups 3,128,311,699 3,128, ,662 2,502,649 Bread 14,334,082,031,063 14,334,082,031 2,866,816,406 11,467,265,625 Rice 847,864,945, ,864, ,572, ,291,957 Beef 8,561,923,346,618 8,561,923,347 1,712,384,669 6,849,538,677 Pork 198,676,057, ,676,057 39,735, ,940,846 Chicken 1,655,728,846,376 1,655,728, ,145,769 1,324,583,077 Milk 4,590,189,422,531 4,590,189, ,037,885 3,672,151,538 Eggs 4,763,030,011,358 4,763,030, ,606,002 3,810,424,009 Potatoes 220,655,906, ,655,906 44,131, ,524,725 Elote 41,630,895 41,631 8,326 33,305 Tomato 166,674,259, ,674,259 33,334, ,339,407 Tangerine 73,887,022,768 73,887,023 14,777,405 59,109,618 Grapefruit 5,334,546,253 5,334,546 1,066,909 4,267,637 Mango 749,711,280, ,711, ,942, ,769,024 Apple 152,718,969, ,718,970 30,543, ,175,176 Orange 426,590,397, ,590,397 85,318, ,272,318 Banana 241,949,342, ,949,343 48,389, ,559,474 Grapes 12,922,854,426 12,922,854 2,584,571 10,338,284 Sugar 164,749,175, ,749,175 32,949, ,799,340 Coffee 14,454,354,215 14,454,354 2,890,871 11,563,483 Chocolate 104,077,918, ,077,919 20,815,584 83,262,335 Total 39,860,039,784,381 39,860,039,784 7,972,007,957 31,888,031,828
23 The total cost of water loss by food losses in Mexico is US$7,972,007, billions of dollars/year 23
24 What would be the income generated, if all the food wasted in Mexico was sold at market prices? 24
25 6. Annual Economic Costs of food losses in Mexico (market prices) Food Waste (kilos or liters) Price / Kg (Mexican pesos) Economic Loss in Mexican pesos (1000) US dollars in thousands US$ Tortillas 2,857, $31,431, $2,328, Soups 115, $2,564, $189, Cockies 44, $3,040, $225, Bread 2,633, $65,834, $4,876, Rice 249, $4,413, $326, Cereals 50, $3,884, $287, Beef 552, $70,428, $5,216, Ground beef 77, $9,304, $689, Pork 41, $3,528, $261, Ham 57, $8,007, $593, Sausages 81, $4,372, $323, Chicken 275, $14,763, $1,093, Fish 99, $10,258, $759, Milk 4,590, $68,738, $5,091, Eggs 1,320, $37,644, $2,788, Potatoes 788, $12,608, $933, Total (79 products) $491,116, $36,379,
26 The annual economic cost of food losses in Mexico (market prices) is: US$36,379, billion US dollars! 26
27 7. The social costs If all the food that is wasted in Mexico were recovered, it could feed the entire Mexican hungry population 27
28 7. Social Costs: Food that could be recovered and delivered to the poorest 28 Kilos per poor person per year Kilos per poor family/week Food Waste (Kilos) Tortillas 2,857,387, Beef 552,382, Ground beef 77,533, Pork 41,390, Chicken 275,954, Fish 99,114, Tuna 18,128, Shrimps 15,256, Milk 4,590,189, Eggs 1,320,862, Potatoes 788,056, Avocado 312,811, Tomatoes 925,968, Carrots 117,565, Beans 329,385, Lentils 24,531, Guava 63,686, Lemon 88,022, Mango 468,569, Apple 218,169, Melon 106,007, Papaya 171,458, Banana 281,336, Watermel on 77,246, Juices and nectars packaged 188,248, Baby cereal and baby food 3,425,
29 8. Case Study: Jalisco, Mexico Generator of food losses or food waste number of respondents Agricultural producers 56 Carriers 54 Supply Center (wholesale market; 60 traders) Retailers 60 Householders 60 Total
30 8. Some results of the field work: producers En su proceso de producción se generan pérdidas o mermas de alimentos? Cumulativ e Frequency Percent Valid Percent Percent Valid Sí No Total Missing Sy stem Total In your production process are food losses generated? Yes: 85.7% No: 14.3% 30
31 8. Some results of the field work: producers Cuáles son las causas por las que se ocasionan las pérdidas o mermas de lo que usted produce? Valid Mala o deficiente planeación de la producción Falta de capacitación en el manejo Limitado conocimiento para la conservación y preserv ación Caracteristicas de los alimentos producidos Manejo inadecuado de los aliment os Frequency Percent Valid Percent Cumulativ e Percent Causes of food losses according to producers: 1. Due to poor quality products (47.8%). 2. Due to lack of food preservation knowledge (15.2%). Missing Total Total Sy stem Due to of lack training (13%). 4. Poor production planning (4.3%). 31
32 9. Main findings 1. There are high economic, environmental and social costs due to food losses and food waste. 2. There is insufficient infrastructure for adequate production, distribution and commercialization of food in Mexico. 3. Insufficient training for proper food handling. 4. Insufficient dynamism of the domestic market. 5. A National Strategy is needed to reduce losses and food waste. 32
33 10. Some proposals to reduce food losses in Mexico 33
34 Proposals: Generate public policies throughout the chain value, which encourage every economic actor to play its role in a sustainable way, considering all the negative effects (environmental, economic and social) that generate these losses and wastage of food. These public policies also should take as a reference experiences that nowadays are working in the recovery of food wastage, such as the food bank and some others. Thank you very much 34
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