Food loss in the Hungarian food industry - Examining quantification problems and attitudes of managers and their impact on policy

Abstract

The food industry is estimated to be the second biggest generator of food losses after households. The novelty of this paper is that it focuses on this less analysed sector, conducting exploratory research based on a detailed primary survey among Hungarian food processors with a uniquely large sample of 175 respondents. A SPSS program was used to analyse the data, generating descriptive statistics, statistical tests for exploring relationships between variables and cluster analysis for classifying respondents based on their attitudes towards the problem. In-depth interviews (19) and a workshop were also applied, refining the results. Only half of the respondents maintain exact records of food loss. The leaders of the companies usually do not consider the generation of losses as a serious problem, but instead tend to see it as a natural phenomenon related to technological processes. Based on the cluster analysis carried out, the companies could be classified into two distinguishable groups. Larger companies perceived the loss to be a significantly more serious problem, they recorded it more accurately than the other group and they had more important motivations such as the desire to achieve cost reduction and better allocation of resources. Food processors face several barriers during food loss management: regulatory issues, the lack of a developed market for by-products, insufficient stakeholder collaboration along the food chain and currently, insufficient incentive to reduce losses. Reduction and better utilisation of food loss can only be achieved if there is a fundamental change in food loss regulation: incentives should be provided to drive companies to avoid losses and to make the best use of the by-products.

Keywords: Food Industry; Food Loss; Food Loss Management; Hungary; Measurement of Food Loss.