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As food loss and waste persist – costing up to $1 trillion annually and contributing significantly to greenhouse gas emissions – the Middle East and global industries are adopting technology-driven solutions to combat inefficiencies. From precision farming to advanced cold chain systems, Samer Alawiah, managing director at Daikin UAE highlights the innovations that are reshaping the supply chain to meet UN targets for sustainability.

With an estimated value of $9.12 trillion in 2024, the global food industry is immense. The supply chain is vast and intricately interconnected, involving upstream, midstream, and downstream players – from growers and farmers to manufacturers, suppliers and retailers.

However, this complexity also brings substantial inefficiencies. Each year, approximately 500 million tonnes of food end up as waste, with an estimated 30-40% of global food supply lost or wasted across the supply chain. This food loss and waste is valued at between $600 billion and $1 trillion.

The environmental and economic impact of food waste

Amidst global hunger – affecting around 733 million people in 2023, or one in eleven worldwide – and the growing urgency of climate change, preventing high levels of food loss and waste has become essential.

Reducing waste across every stage of the supply chain, from production to consumption, is crucial to addressing the 8-10% of global greenhouse gas emissions linked to food loss and waste. Due to its significant environmental impact, food loss and waste reduction is a critical Sustainable Development Goal (SDG), with the UN advocating for a 50% reduction across production and supply chains by 2030.

Across the Middle East, governments have likewise adopted the strategic imperatives of the UN regarding food waste. The UAE, for example, has aligned its targets for food waste reduction with the UN through the UAE Food Waste Pledge. Numerous initiatives are now in place to reduce food loss and waste, including awareness and donation campaigns, as well as recycling and composting drives.

However, with 23% of waste occurring in the handling and storage level, 10% during processing and packing, and 13% in distribution and retail, more must be done at the supply chain level to ensure that food waste targets can be met.

Technological solutions driving sustainability

As awareness grows about the environmental and economic aspects of food loss and waste, we are seeing a surge of innovations aimed at driving sustainability across the global food supply chain.

The introduction of smart agriculture technologies, such as drone-based monitoring systems, automated irrigation and AI-driven analytics, is helping farmers make informed decisions. By monitoring weather patterns, soil conditions and crop health, farmers can minimize the risk of crop failure or spoilage due to environmental factors.

In the UAE, this trend is visible in the move toward vertical and precision farming. Produced closer to home, these innovations in modern growing methods reduce the need for long-distance transportation and decrease food loss during harvest due to the controlled environment in which they are grown.

These indoor growing methods are made possible by advanced HVAC-R solutions that regulate temperature, humidity and airflow, ensuring that crops receive optimal growing conditions year-round. Advances in energy-efficient HVAC-R systems are also helping to make indoor farming even more sustainable. Innovations such as inverter technology minimise energy use while maintaining the necessary conditions for crop growth.

These solutions not only reduce the carbon footprint of indoor farming but also improve its economic viability by lowering operating costs. These systems are especially important in the Middle East, where extreme heat and dry conditions outside make it challenging to grow food traditionally.

Innovations in farming, storage and distribution

When it comes to post-harvest management, storage and transportation conditions are critical to reducing food loss between their production source and end destination. Technologies including blockchain, IoT sensors, and advanced cold chain solutions ensure optimum conditions to prevent spoilage and rot throughout the distribution stage.

IoT sensors, for example, help maintain cold storage conditions by monitoring, adjusting, and reporting on temperature and humidity levels to ensure goods are stored in ideal conditions.

Meanwhile, blockchain allows for traceability and better inventory management, while HVAC-R systems maintain consistent, controlled temperatures throughout the supply chain, whether in storage facilities or during transportation. Together these tools provide an added layer of visibility and transparency throughout the supply chain, crucial for preserving the freshness of food and preventing spoilage throughout the supply chain.

As we look to the future, it is vital that we continue to adopt advanced technologies that help us solve the interconnected challenges of climate change and food loss and waste.

From innovative agricultural technologies to progressive storage and distribution solutions, the industry is being transformed by technologies that promote efficiency, transparency, and sustainability. From vertical farming to blockchain, IoT and low-refrigerant HVAC-R systems, these tools will be vital for meeting global food loss and waste reduction targets and supporting the sustainable development goals set forth by the United Nations.

To effectively tackle food loss and waste, a united effort from governments, industries, and consumers is essential. By harnessing technology and innovative practices, we can significantly reduce the environmental impacts of food production while advancing food security for all.

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