Can technology help prevent food waste?
I was born in Ukraine just before the collapse of the Soviet Union, and spent my childhood witnessing the severe crisis of a country transitioning from a planned to a market economy. There was literally no food to buy at the shops as supply chains collapsed. I learned first-hand what a disrupted food system looks like. Fortunately, Ukraine is rich in agriculture. My grandparents had a large garden where we grew fruits and vegetables for our own consumption with zero pesticides or sophisticated technology. That was the beginning of my connection to agriculture.
Challenging supply chains
I have spent over 13 years working in the agriculture sector. My introduction to the fresh produce sector came while working with berry producers in Ukraine, helping them market and meet quality requirements for Western European markets. I was astonished to see how risky and disorchistrated fresh produce supply chains are.
I was accustomed to the trade of soft commodities, where all products are clearly categorized into quality grades, and no trade takes place without a quality certificate from a third party.
In fresh foods, products are too perishable and deteriorate faster than any quality certificate can be issued. Furthermore, the quality specifications used by supermarkets mostly define how a product should look, not reflecting customer demand for taste or nutrition.
Here’s how that would look if all supply chains operated like this…
Imagine your kid asks for a pirate ship LEGOⓇ set for Christmas. The only way to get this set is to order it directly from the factory, and there’s no way to communicate that the product they ship must be a pirate ship. Moreover, LEGOⓇ blocks are made of candy and can easily melt in transit. Hence, you end up with a delivery of a strangely shaped, melted block of colors that once was a pirate ship. Your expectations are not realised, and you face the following outcome:
Unhappy child
Economic loss
Wasted resources
We are so accustomed to having our expectations met in purchases that this scenario may sound ridiculous. However, this is the daily reality for fresh produce companies. Customers order “good fruit” without being able to define their order in more detail. And — since fruits and vegetables perish at a rate that is difficult to predict — there is little certainty on what will arrive.
All of this boils down to a very alarming problem: food waste.
In addition to environmental concerns, the profitability of farmers and distributors must also be considered. They work around the clock to grow and deliver fruits and vegetables. Despite their efforts, they face escalating quality claims, rejections and price negotiations that threaten their profitability — even the very existence of their business.
Baskets of fresh strawberries (Picture: Unsplash)
A package of strawberries must move from field to store in 7-10 days — picked, packed, warehoused, loaded onto a truck, exported via plane or cargo ship, warehoused for import, then delivered to the correct restaurant or shop. There are at least 3 parties involved in this process. All of them need to know 1) what they are buying 2) their customers’ expectations, and 3) be able to communicate quickly.
Driving innovation in the fresh produce supply chain
Sharon Wulff and I founded Agrinorm to help fresh produce companies prevent quality issues earlier in the supply chain, ensuring that the right products are shipped to the right customers.
Today, Agrinorm is an advanced SaaS quality management platform backed by machine learning; creating a digital ecosystem in which companies can exchange information across organizational boundaries to optimize supply chain performance. Such well-orchestrated supply chains will be more efficient, profitable, competitive, and have a lower environmental footprint.
It all started with a proof of concept and prototype more than three years ago. One of the experiments was supported by the WFSC grant, where we compared the quality evolution for organic and conventional blueberries produced in Spain.
While the pandemic interrupted its original intent, the project helped us build connections to people on the ground. They continued providing us with valuable feedback and became our first customers once the beta system was developed.
A brighter future
In a perfect world, fruits and vegetables wouldn’t travel 1,000+ miles from field to shelf. But demand for year-round strawberries isn’t likely to diminish, and a modern problem requires an innovative approach. Food shouldn’t spoil on a dock somewhere because of an inefficient supply chain.
Suppliers must become more flexible and exchange detailed information more easily. If a farmer knows which variety performs best, he can plant more of it next year. A distributor who knows it rained in the field can better predict the shelf-life and choose the right channel to sell to.
Growing up in adversity painted a poignant and beautiful picture of human resilience, I learned first hand that “Whether you think you can, or you think you can't – you’re right” (H. Ford). I choose to believe that we at Agrinorm can make a significant impact on our food systems.
ABOUT THE AUTHOR
Daria Reisch is co-founder and CEO of Agrinorm. She has over 13 years’ experience in the agri-sector and is an expert in agricultural value chains. Daria started Agrinorm together with Dr Sharon Wulff in 2019. Its aim is to make technology serve big and small fresh produce companies, and to help them prevent quality issues, to become more profitable and competitive while reducing their environmental footprint.