Target-Measure-Act: Less food Loss and Waste in Dutch banana supply chains

The growing recognition of the economic, social, and environmental consequences of Food Loss and Waste (FLW) has spurred a call to action among and in cooperation between stakeholders in the food system. The United Nations (through SDG 12.3) and the EU (through the Waste Framework Directive and the CSRD reporting directive) fully support reducing FLW. However, the question remains: Where should your company begin? This factsheet serves as a steppingstone in embracing the Target-Measure-Act approach. The information and statistics presented in this factsheet aim to empower you to target FLW in your food supply chain and formulate your objectives accordingly.

This factsheet presents the banana supply chain, the FLW percentages in the main supply chain stages, its destinations and impacts, and the causes and possible interventions to support FLW reduction through the Target-Measure-Act approach.

Read the full banana product factsheet

Banana market

Bananas ranked as the most popular fruit among Dutch consumers in the first half of 2021, closely followed by apples and oranges. As this tropical fruit does not grow in the Netherlands, the market is totally dependent on its import.
Imported bananas by the Netherlands come mainly from America (70% of total import) and Europe (30% of total import), and the main countries include Costa
Rica and Ecuador.

Figure 1: Import and export of bananas in the Netherlands (2021)

Not all of the imported bananas are actually consumed within the Netherlands. A significant portion – 74% of the total imported volume – is exported after ripening to neighbouring countries, especially within the European Union (Figure 1). This shows the pivotal role of the Netherlands in the distribution of fruits and vegetables to the rest of Europe

Bananas are among the top 5 fruits and vegetables in terms of their import value in the Netherlands, accounting for around 8% of the total import value of fruits and vegetables. In the context of global trade, the Netherlands accounts for 5% of the total volume of imported bananas worldwide and 4% of their total value. These substantial import and export volumes come with potentially significant Loss and Waste along the supply chain, underscoring the importance of addressing FLW.

FLW in the international banana supply chain

The banana supply chain consists of multiple actors that all add value to the product, for example by producing the bananas, transporting, or performing ripening. Every banana supply chain link differs, as individual companies are involved who all conduct different activities at their entity. In general, actors in the international banana supply chain include growers, exporters, importers and retailers. However, also different types of intermediaries can be active in the supply chain in the exporting countries, and actors can also perform multiple functions, such as being grower and exporter.

The FLW data collection process consisted of an inventory with quantitative
templates with questions on produced or processed volumes and losses, its
causes and destinations of lost products. The templates were distributed among
SIFAV members (importers and retailers), who in turn shared them with their
upstream partners. Partners included were growers, exporters and importers.
Data collected at the primary production stage include the activities production and harvesting of bananas, and post-harvest activities on-farm such as washing, sorting and packing. Activities at the export stage include all activities performed after farm gate, prior to shipment, which can include for example packing, storage and transport. The import stage includes all activities from overseas transport, arrival until delivery to the retail distribution centre and can include ripening, sorting, re-packing and delivering. Activities in the retail stage include the storage, transport and sales at the distribution centres and retail outlets.

Table 1 shows the average FLW percentages per supply chain stage as collected by SIFAV members, and the average FLW percentages found in literature. The banana production and export countries included in the SIFAV data were Ecuador, Peru, Colombia and Costa Rica. The reported SIFAV data is in line with the data reported in literature. At the primary production stage, the reported percentage of 3.8% does not differ from the literature value of 2.2% due to the variation in the data. Literature data for losses incurred at the export and import stage was not found. At the retail stage, the reported average of 4.3% is comparable to the average found in literature, which is 5.7%.

Table 1: Sample size, and FLW percentage + standard deviation for bananas

*This number includes default data, as provided by SIFAV.

Destinations of FLW in the banana supply chain

Bananas not suitable for human consumption are rejected, become part of the FLW side stream, and need a new destination other than human consumption. Figure 2 shows the destinations of these rejected bananas as reported in the SIFAV inventory. In the primary production and export supply chain stages animal feed is used as destination for the banana side streams. However, part of their banana side streams are also used for land application, landfill and other. At the import and retail supply chain stages the banana side streams are only used for anaerobic digestion or landfill.

Figure 2: Destinations of discarded bananas

Greenhouse gas impact of banana FLW

FLW does not only have a negative effect on economic factors, but also on social and environmental factors such as food security and climate change. As an example of environmental impact, the FLW associated greenhouse gas (GHG) emissions for the Dutch banana import and distribution are presented here, covering the activities primary production, transportation (from the country of origin to retail), and packaging. The primary production and transportation related emission factors are origin-dependent. Therefore, the FAO detailed trade matrix was used to determine the countries of origin, including a correction for re-export among European countries, for the banana imports to the Netherlands. From this import profile, an average emission factor for the primary production, export and import stages result. For distribution towards retail the volume for domestic consumption and the export volumes to various countries are used as input for the average emission factor for the retail chain stage. The packaging emission factors were derived from literature.

The resulting FLW attributed GHG emission factors for the bananas imported to the Netherlands based on SIFAV data are given in Table 2. The emissions per kg product increase to the end of the supply chain. In other words, one kg product wasted at the retail sector contributes to a larger extend to GHG emissions compared to one kg product lost at primary production.

Table 2: Impact factors in kg CO2-equivalents per kg bananas along the banana supply chain for the Netherlands

The FLW percentages from Table 1 are applied to the banana volumes of the Netherlands. Converted to impact, the chain stage division in CO2 footprint as in Figure 3 results. With the highest FLW % in the export chain stage, discarded bananas in this stage of the supply chain contribute the most to the GHG emissions along the chain.

Figure 3: Division of FLW associated GHG emissions along the supply chain for the Dutch banana import volume

Causes of FLW in each supply chain link

Table 3 shows the causes of FLW for bananas in the international supply chain, per supply chain stage. As bananas are a perishable food item, most causes are generic and also applicable to a variety of other perishable food items. In the primary production stage, the main root causes of FLW for bananas include pest damage, damage from weather events, cosmetic defects and inappropriate use of packaging. Main root causes of banana waste further up in the supply chain include rejection due to maturation.

Interventions to prevent and reduce FLW

Potential interventions for FLW reduction for bananas, per supply chain stage, are provided in Table 4. The interventions are classified into three categories: hardware, software and orgware. Addressing all three categories ensures a comprehensive approach to developing strategies to decrease FLW. Most potential interventions presented can be implemented in all type of international fresh fruit supply chains. Main interventions to tackle the root causes of FLW for bananas include pest-preventing measures and appropriate packaging in the country of origin, and a careful controlled ripening process to avoid over-ripening at the import stage of the supply chain. Root causes cannot always be tackled by simply investing in one intervention. Often losses found in one part of the supply chain are already caused further upwards in the supply chain. For example, bananas sorted out at arrival at the importer due to bruises received the bruises due to transport or the packaging that was used in the producing country. Therefore, it is needed to collaborate with other actors in the supply chain to efficiently reduce FLW.

Table 4: Potential interventions for FLW reduction per supply chain link

Take-home message

Facts & figures

The percentage of Food Loss and Waste (FLW) in the international supply chain of bananas to the Netherlands from primary production till and including retail is 17.4% in total, with the highest percentage of FLW occurring in the exporting country. Estimated FLW associated greenhouse gas emissions increase from 0.31 kg CO2-equivalents per kg bananas at primary production to 0.82 at retail for Dutch imports of bananas.
The main root causes of FLW for bananas include pest damage, damage from weather events, inappropriate packaging and loss due to maturation.
The main interventions for FLW reduction for bananas include pest-preventing measures, appropriate packaging, and carefully controlled ripening processes.

Where to begin?

Implement the TARGET-MEASURE-ACT strategy and make use of the tools of the FLW toolbox

Concrete actions and targets

Actions: : Set targets for your own organisation and monitor FLW volumes, discuss the causes of FLW, determine reduction strategies, allocate capacity, formulate a business case, discuss challenges with chain partners, and evaluate the results.
Targets: Connect your targets with the SDGs. Achieving targets is feasible when tackled jointly in the supply chain with support of a wider network of stakeholders.

Contact

Do you want to start with the Target-Measure-Act approach to monitor and reduce your Losses and Waste in the banana supply chain? Please do not hesitate to contact us.