Australian food retailers, notably Coles and Woolworths, generate $1.2 billion in profits each year through food wastage, states a recent study by The Australia Institute. These profits provide a significant incentive for these supermarket giants to hinder food waste reduction initiatives.
Progress on reforms, such as removing unnecessary ‘best before’ dates from products, has been sluggish. Australia now faces challenges in meeting its goal of halving food waste by 2030.
Key findings include:
- Australia wastes a staggering 7.6 million tonnes of food annually, equivalent to 152 Sydney Harbour Bridges.
- Households discarded food worth $19.3 billion in 2018-19, translating to an average cost of $2,000 to $2,500 per household.
- Supermarkets enjoy an estimated 6% profit margin on food retail, resulting in $1.2 billion in yearly profits from wasted food.
- This financial incentive has led food retailers to delay necessary reforms, such as those related to date labeling. Polling by The Australia Institute reveals strong public support for policies aimed at reducing food waste, including labeling reforms (78% support), relaxed cosmetic standards (72%), and curbside collection of food waste (75%).
According to Matt Grudnoff, Senior Economist at The Australia Institute, “The government must decide whether they are prioritizing consumers or supermarket profits. It’s high time for food labeling reform and other recommendations from the National Food Waste Strategy Feasibility Study to be implemented.”
In conclusion, Australian food retailers’ significant profits from food wastage have become a roadblock to essential reforms aimed at curbing food waste and reducing costs for consumers.