WASHINGTON — Artificially low food prices that distort markets contribute to the 30% of food that is currently wasted and lost around the world, according to a new report from the World Bank.
The report, “Addressing Food Loss and Waste: A Global Problem with Local Solutions,” notes that both producers and consumers avoid paying for the true cost of the environmental impact of agriculture. Government subsidies provided to both producers and consumers reduce the incentive for them to save food.
“Effectively, the prices no longer are market prices, which means they are not really incorporating the actual cost of production, and the actual cost of production means using the scarce environmental resources. If they get artificially priced in a way that it just doesn’t make it worth saving, right, if the price is too low we don’t bother, it’s just not worth the cost,” said Geeta Sethi, adviser in World Bank’s agriculture and food global practice.
About the author
Teresa Welshtmawelsh
Teresa Welsh is a Senior Reporter at Devex. She has reported from more than 10 countries and is currently based in Washington, D.C. Her coverage focuses on Latin America; U.S. foreign assistance policy; fragile states; food systems and nutrition; and refugees and migration. Prior to joining Devex, Teresa worked at McClatchy's Washington Bureau and covered foreign affairs for U.S. News and World Report. She was a reporter in Colombia, where she previously lived teaching English. Teresa earned bachelor of arts degrees in journalism and Latin American studies from the University of Wisconsin.
