by Dr Rajat Roy
Teaching shoppers to buy 'ugly' vegetables and government subsidisation of freight for goods could help to significantly reduce the cost of our weekly shop.
In Australia the issue of food wastage, particularly concerning ugly and imperfect fruits and vegetables, is more significant than most can imagine.
The sheer magnitude of this problem impacts on our environment, economy, and everyday lives.
According to www.farmerspick.com.au, every year in Australia “a colossal 7.6 million tonnes of food goes to waste, costing the economy over $36.6 billion annually."
Their research shows on average food waste costs each household over $2,500 each year.
Food waste also takes a considerable toll on our resources, namely water.
www.farmerspick.com.au also raises the issue of land that’s wasted growing 'ugly' food that will never be consumed at more than 25 million hectares: an area larger than the entire United Kingdom.
An astonishing 2.4 billion kg of food never leaves the farm due to the supermarkets’ unrealistic beauty standards.
'Ugly' fruits and vegetables are a huge contributing factor to food waste, with an astounding 30% of produce never leaving the farm gate.
Each of us can play a part in solving this issue – and that includes a future where we embrace ugly fruits and vegetables.
The American Marketing Association says unattractive fruits and vegetables, such as lumpy, misshapen, or discoloured potatoes, carrots, apples, and strawberries, are fresh and good to eat.
“But we found … buying unattractive produce negatively impacts consumers’ view of themselves, causing a drop in self-perceptions”.
“Fortunately, there is an easy fix: boost consumers’ self-esteem by:
“In Sweden, providing in-store advertising with targeted messaging (e.g., ‘You are fantastic! Pick ugly produce!’) increased shoppers’ willingness to buy unattractive produce by 22.4%.
“Retailers who use self-esteem-boosting ads can drive 12.6% more revenue (discounting ugly fruit by 30%) or 6.5% more revenue (at a 50% discount) than when they run generic ads with only product information.”
The AMA said “… when used systematically, targeted advertising could help increase consumer acceptance of ugly fruits and vegetables and reduce food waste in farmers’ fields and stores.
“Society also benefits through agricultural and sales practices that are more sustainable and help feed more people.”
In Australia, the recommendations from the ongoing 2023-24 Food & Grocery Code of Conduct Review should focus on helping farmers to sustain their business and also help consumers with lower prices.
This needs government intervention like subsidising freight costs, educating consumers about ugly vegetables, and effort from all stakeholders, including supermarkets.
Despite the introduction of Aldi to Australia in 2001, and the ongoing battle between Coles and Woolies, there has still been a rise in prices across product categories.
By making the food and grocery code mandatory, and enhancing enforcement powers, the review should also seek to ensure fairer treatment of suppliers.
However, it’s important shoppers note that changes to this code alone are unlikely to significantly reduce grocery prices for consumers.
Other factors, such as input costs and market dynamics, also play a crucial role in determining prices.
Reducing the cost of groceries in Australia involves a combination of government policies, market practices, and consumer behaviours. These include:
Government Policies:
Providing subsidies for remote community stores can make fresh food more affordable.
Regulating Supermarket Practices: Increasing transparency in price-setting practices and addressing the market power of major supermarkets can help prevent price gouging.
Market Practices:
Supporting Local Producers: Encouraging the purchase of locally produced goods can reduce transportation costs and support local economies.
Implementing food waste reduction strategies can help lower overall costs. For example, storing food correctly and repurposing leftovers.
Consumer Behaviours:
Buying in Bulk can often reduce the per-unit cost.
Taking advantage of sales and discounts can lead to savings.
Growing fruits and vegetables at home can reduce dependency on store-bought produce.
Loving ugly foods, to save money.
One country being proactive in driving down grocery prices is France where the government negotiates with large food conglomerates to keep prices down.
France also has an Anti-Food Waste Law (2016) that forbids supermarkets from destroying unsold food products.
Instead, they must donate these items to charities. This reduces waste and helps provide affordable food to those in need.
Australia could do worse than follow this lead.
Dr Rajat Roy is Associate Professor of Marketing.