Tackling food waste: The role of food suppliers’ investment in preservation technology and government intervention

Abstract

Investing in preservation technologies (PT) within the food industry has become increasingly important owing to global food crises. While many studies analyze the benefits and costs of investing in PT, there is a limited understanding of how market prices and food deterioration rates influence these investment decisions. Additionally, the impact of government interventions on this process has not been thoroughly explored. This study aims to address these knowledge gaps, motivated by data from interviews, by using optimization models to analyze food suppliers’ investments in PT amid varying market prices, transportation costs, and deterioration rates. Our findings identify specific conditions that drive PT investment, including scenarios where deterioration rates and market prices fall within certain ranges, and where low transportation costs align with high or moderate market prices. Moreover, government interventions can support PT investment by improving these conditions, though their effectiveness may be limited if suppliers lack access to affordable low-carbon PTs or face high costs. We also identify a breakeven point for social welfare, showing that excessive taxation can significantly reduce welfare. This study introduces a novel framework that integrates multiple elements to offer a deeper understanding of the motivations behind suppliers' investment decisions. It seeks to align supplier incentives with the goals of sustainable food supply chains, thereby fostering more effective policy strategies for tackling food waste. The insights gained will offer valuable guidance to practitioners and identify avenues for future research.