It’s a well-known statistic that around a third of global food production eventually ends up as food waste.[1] What’s less well known is that almost half of this 14% is lost or wasted before the food or beverage product makes it onto the supermarket shelf, bar or restaurant table or to the consumer at home.[2]
While there is a considerable amount of wastage during harvesting and production, a sizable proportion is lost during transit, storage and final distribution. Factors like weather, lost containers at sea, damaged packaging and pests play a major role in the losses.
Examples in recent years include:
Many firms are seeing shifts in their risk profiles, especially those with global supply chains.
Map your logistics chain: Make sure you know every link in the chain from farm to final delivery. Greater visibility can help you understand where shipments are most vulnerable, for example from weather and natural catastrophes, theft or fire.
Check your contracts: Contracts, especially those with logistics providers, are very detailed and often complicated. Carry out a contract review to make sure that liability for losses hasn’t been wrongly shifted on to your business.
Implement real time tracking: Track the location status of your shipments in real time using systems such as smart food labels. This technology also allows you to monitor the condition and freshness of goods in transit and storage.
Consider end-to-end insurance solutions: Stock throughput policies can provide door to door cover for goods from the source to end delivery with continuous cover during distribution. This continous cover includes:
Stock throughput eliminates gaps in cover and removes the need for separate policies for transit and storage. It also removes the need to include stock in property policies, which can help firms maximize property cover for their core buildings and assets.
The food, beverage and agriculture industry faces many emerging risks including loss and waste from farm to table. Firms face increasing risk of damage in transit and storage driven by factors from extreme weather, business disruption and theft. However, by mapping the logistics chain, monitoring goods on the move and reviewing their logistics contracts, they can reduce both food waste and financial risk.
WTW can support this process through risk analytics, contract reviews and tailored insurance cover.
