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Potential Impacts on Sub-Saharan Africa of Reducing Food Loss and Waste in the European Union

21 Dec 2015

A focus on food prices and price transmission effects

Jointly drafted by FAO and LEI Wageningen UR, this paper uses scenario analyses to investigate how reductions in food loss and waste (FLW) in the European Union (EU) could influence prices in sub-Saharan Africa – as a source and destination of traded agricultural and food products. In addition to a baseline “business as usual” (BaU) scenario, four scenarios with 50-percent reductions are enacted using the Modular Applied GeNeral Equilibrium Tool (MAGNET).

The analysis provides insights on potential impacts in terms of medium- to long-term global and local price changes in sub-Saharan Africa and the mechanisms behind them – changes in production, consumption and trade patterns. It also provides insights into the potential welfare impacts.

The research shows that loss or waste of safe and nutritious food for human consumption is being prevented and reduced in the EU concurrent to actions in other regions. The potential intra- and inter-regional impacts on food prices and welfare therefore need to be further researched and projected.

The research also shows that high-level considerations of the socio-economic impacts of FLW need to be balanced with value chain analyses that include data on costs related to the prevention and reduction measures to be implemented for short-, medium- and long-term returns on investments along food supply chains, including at the end consumption level.

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