Aesthetic grading causes food losses without financially benefiting farmers: Micro-level evidence from China's fresh apple supply chain.

International literature is lacking quantified information about the impact of raising demands for attractive appearances and the private standards on food loss and associated effects on the economy, the environment and social issues. Given the global scale and significance to food consumption and health, fresh apples were selected for researching the issues. By focusing on China, the major production region of fresh apple in the world where the effects of aesthetic preference and shape abnormality are substantial, the present study aims to gain insights into the on-farm grading processes and different marketing channels for fresh apples in China. It was discovered that 35% of the volume in China's major production areas of fresh apples were graded by aesthetic characteristics such as ripeness, colour, fragrance, bruising, intactness and appealing appearance. About 17.1% of production on average were considered as food losses mainly caused by such grading schemes. Favouring 'perfect' appearance; however, the grading did not yield economic benefits for smallholders. Lastly, direct procurement by supermarkets had a depressive effect on the price of fresh apples at the farm gate. The study has a unique value for global debates and actions against food loss and waste as it quantifies on-farm post-harvest losses of fresh apples by different agri-food chain organizations in China with respect to mass and economic value.