Preservation Technologies Are the Key to Driving Higher Margins and Avoiding $1 Trillion in Losses Across the Agrifood Value Chain

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Preservation Technologies Are the Key to Driving Higher Margins and Avoiding $1 Trillion in Losses Across the Agrifood Value Chain
TeroVesalainen / Pixabay

As we approach International Day of Awareness of Food Loss and Waste on September 29,  I wanted to make sure you saw the below from Lux Research on the need for improved technology to decrease food loss and waste. Lux Research Analyst and lead author of the “Preserving the Food Chain” report, Harini Venkataraman, Ph.D, shared the below commentary:

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Q2 2020 hedge fund letters, conferences and more

"Protection and preservation technologies are a significant part of optimizing profit margins in the food supply chain, while also contributing to meaningful reductions in food loss and waste. Especially in times of uncertain or fluctuating demand for foods, preservation tech takes center stage to help agrifood value chain players - from producers to retailers - cope with uncertainty. The 2020 International Day of Awareness of Food Loss and Waste focused on mitigating FLW points out that “Innovation, technologies and infrastructure are critical to increasing the efficiency of food systems and to reducing food losses and waste.” In line with this, our recent report “Preserving the Food Chain” analyzes major technology options and emerging solutions for preservation across the entire food supply chain to mitigate demand shocks, improve margins, and reduce overall FLW."

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Preservation Technologies Are the Key to Driving Higher Margins and Avoiding $1 Trillion in Losses Across the Agrifood Value Chain, Says Lux Research

Food loss and waste (FLW) currently causes an estimated $1 trillion in economic losses globally each year. This constitutes a major humanitarian crisis in addition to an economic one, leading the United Nations to set a goal of reducing global FLW by 50% by 2030. A new report by Lux Research, “Preserving the Food Chain,” outlines key protection and preservation technologies to help companies achieve significant reductions in both pre-consumer food loss and post-consumer food waste.

“Preservation and shelf life extension technologies are key across the agrifood and health ecosystems, something the pharmaceutical and pesticide industries have long understood” says Lux Research Analyst and lead author of the report, Harini Venkataraman, Ph.D. “We’re now seeing innovation and new solution development across the food supply chain, from pre-harvest preservation technologies to post-retail and in-home storage solutions.”

Read the full report here.

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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