Tech is helping grocery stores waste less food. That’s a problem for food banks
First, the good news: Grocery stores are getting better at cutting food waste. AI tools can help better predict demand for each product, for example, and help a store reduce waste by more than a third. Other tech can help stores sell food before it expires. But there’s a catch—some food banks say that now they’re getting fewer donations. How retailers are getting better at wasting less Demand…
Grocery stores are making strides in reducing food waste through the use of artificial intelligence and other technological innovations. Predictive demand software, powered by machine learning algorithms, can accurately forecast sales based on factors such as weather forecasts and the timing of food assistance programs. Companies like Afresh and Guac claim to have helped prevent over 200 million pounds of food waste for their respective grocery departments.
Additionally, dynamic pricing strategies have been shown to cut waste by up to 21%. These advancements have led to a decrease in overordering, as stores can now order items directly through AI systems, resulting in less food being thrown away.
However, the increased efficiency in grocery stores has inadvertently contributed to a decline in food donations to food banks. Many food banks, such as Gleaners Food Bank of Indiana, are facing a tightening supply chain as demand for charitable food grows, causing them to increasingly purchase food instead of relying solely on donations.
In 2018, food banks spent only 16% of their budget on buying food, but this year, that number is expected to rise to 50%. Additionally, some food producers have adjusted their production methods in response to changing market demands, leading to less surplus food being donated.
The impact of these changes is particularly evident in supermarkets, which were once the largest source of donated food for food banks. West Seattle Food Bank, for example, has seen a 10% drop in donations from major grocery stores over the past six years. At the same time, the adoption of new efficiency tools has grown. Robbin Peterson, the development director for the food bank, notes that many stores have shifted away from keeping extra stock to maintain a full-looking shelf, opting instead for on-demand ordering systems.
Despite these challenges, there are signs of potential recovery. Some food banks have experienced temporary surges in donations due to factors such as heightened consumer concerns over food safety. However, the overall trend remains one of decreasing donations, with food banks feeling the strain of reduced funding and infrastructure damage from natural disasters.
While technology can help minimize waste, the growing demand for affordable groceries and decreasing federal food aid contributions are contributing factors to the dwindling number of food donations to food banks.
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