McKinsey Quarterly 2023 Number 1

At most companies today, the unfortunate reality is that food loss is no one’s problem.

Enable true and lasting change At any company, food loss reduction won’t be treated as a strategic priority unless it has the sponsorship of the C-suite. Indeed, in an infor mal poll of a dozen industry leaders, two-thirds - pointed to weak governance as the biggest roadblock to the implementation of food loss programs in their companies. One of the most important enablers for signifi cant and sustained change, therefore, is a - strong governance model—with cross-functional accountability encompassing procurement, R&D, the supply chain, manufacturing, marketing, and finance; clear responsibilities and objec tives; and KPIs at the individual, functional, and - enterprise levels. Designating an owner for each food loss initiative and aligning on measures of success will help ensure progress. New per formance metrics might include, for instance, the - volume of food lost, the profit from upcycling, or the revenue gained from saving food that would otherwise be lost. Stakeholder management, too, is a critical enabler. Suppliers, consumers, and other participants in the value chain can be persuaded to become allies and supporters of loss reduction efforts rather than inhibitors. Manufacturers and grocers can create and raise awareness of the problem— and its extent—among farmers and suppliers to help them see food loss as an inefficiency instead of an inevitability. On the consumer side, targeted marketing programs and educational campaigns can help consumers understand how to reduce food loss, which could in turn enable the implementation of upstream measures, such as less-exacting cosmetic specifications for fresh produce.

At most companies today, the unfortunate reality is that food loss is no one’s problem. No indi vidual or team owns and champions the issue. In - a sense, companies have had the luxury of not having to pay too much attention to food loss.

McKinsey Quarterly 2023 Number 1

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