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FAO 2018. Food Loss Analysis: Causes and Solutions. Case Study On Food loss analysis: causes and solutions Case study on the maize value chain in the Democratic Republic of Timor-Leste Food loss analysis: causes and solutions Case study on the maize value chain in the Democratic Republic of Timor-Leste FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME, 2018 Required citation: FAO. 2018. Food loss analysis: causes and solutions - Case study on the maize value chain in the Democratic Republic of Timor-Leste. Rome. 44 pp. Licence: CC BY-NC-SA 3.0 IGO. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. ISBN 978-92-5-130665-9 © FAO, 2018 Some rights reserved. This work is made available under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 IGO licence (CC BY-NC-SA 3.0 IGO; https://creativecommons.org/licenses/by-nc-sa/3.0/igo/legalcode). Under the terms of this licence, this work may be copied, redistributed and adapted for non-commercial purposes, provided that the work is appropriately cited. In any use of this work, there should be no suggestion that FAO endorses any specific organization, products or services. The use of the FAO logo is not permitted. 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Jonhson iii Contents Foreword v Acknowledgements vi Abbreviations and acronyms vii Introduction to the case studies ix Executive Summary xiv Chapter 1 Introduction and background 1 Status, importance of the maize subsector 1 Inventory of activities and lessons learned from past and ongoing interventions in maize losses 4 Overview of the most important FSCs in the maize subsector; selection of FSC 5 Presumed food losses in the selected FSC 8 Chapter 2 The maize supply chain – situation analysis 9 Description of the selected maize supply chains 9 Marketing system in the maize supply chain 12 Actors in the supply chain: involvement, benefit, job creation and income 13 Chapter 3 Study findings and analysis 17 Description of the maize supply chain: risk factors 17 Critical loss points 18 Causes of losses and identified loss reduction measures 20 Chapter 4 Food loss reduction strategy – conclusions and recommendations 23 Impact of food losses in the maize supply chains 23 Food loss reduction measures 23 Cost-benefit analysis of identified food loss reduction measures 23 Conclusions 24 Bibliography 27 iv TABLES A Respondent characteristics xii B Relevant institutions and their roles in the maize subsector xiii 1.1 Maize production, consumption and maize import in Timor-Leste from 2010 to 2015 2 1.2 National production information for the maize subsector 3 1.3 Food safety management mechanisms 3 1.4 Past and current government interventions in the maize subsector 5 1.5 Type of training and assistance given to maize farmers in Lautem 5 1.6 Food supply chains in the rice subsector categorized by geographical area of production 6 1.7 Importance of maize supply chains at the national level 6 1.8 Importance of maize supply chains for their actors 6 1.9 Preliminary screening of maize losses in the selected FSC (Lautem district) 7 1.10 Detailed description of the maize supply chain – basics 11 1.11 Detailed description of the maize supply chain – social structures 14 1.12 Detailed description of the rice supply chain – Economics 15 1.13 Detailed description of the maize supply chain – Environment 15 1.14 Food Loss Risk Factors 17 1.15 Summary result matrix of maize losses 19 1.16 Budget calculation for maize loss reduction – using harvesting machines 24 1.17 Summary tables of maize losses, causes and solutions 25 FIGURES 1.1 Map indicating areas visited during the maize case study 1 1.2 National production information for the maize sector – actors and product flow 2 1.3 Yellow leaves shows the maize is ready to harvest 9 1.4 Maize that has become mouldy due to rains 10 1.5 Different maize storage facilities at the study sites 10 1.6 Traditional milling 11 1.7 Machine milling 11 1.8 The actors in the maize supply chain in Lospalos 12 1.9 Estimated loss along the food supply chain in the study area 18 1.10 Maize harvested manually 20 v Foreword Widescale global food losses and waste affect the sustainability and efficacy of food and nutrition systems, especially in the developing world. While food loss measurements are often limited by a dearth of data, high loss estimates in developing countries result from food supply chain failures. In 2011, the Food and Agriculture Organization of the United Nations (FAO) and the Swedish Institute for Food and Biotechnology published its Global Food Losses and Waste study which estimated that approximately one third of the total food produced for human consumption is either lost or wasted. While numerous studies have been undertaken to quantify food losses at the national level, information regarding the critical loss points, or areas where food loss in a specific food supply chain is most prevalent, is often unclear. Compounding the challenge, the underlying reasons for loss-inducing food supply chain failures also require further examination. In order to improve global, regional and local knowledge about the underlying reasons for food loss, as well as to assess where critical loss points occur, FAO undertook a series of case studies involving numerous food supply chains in developing countries. Utilizing a defined food loss and waste analysis framework, the Organization and its partners identified nationally-important food products, and commissioned local-level studies of the losses in these chains. The findings of the study will be used to develop technically, economically, environmentally and socially feasible solutions to reduce food losses. These solutions will be developed both in the chains examined, as well as in similar chains in other countries, with due considerations for economic parity, agro-ecology and social conditions. Maize is one of the most consumed food products in the Democratic Republic of Timor-Leste, and given that the majority of residents rely on subsistence farming, the crop is the most critical for food and nutrition security. Resultantly, supply chain inefficiencies in the maize subsector have rippling economic and social impacts throughout the country. These impacts are further exacerbated by an absence of large-scale maize industries or producers in the country. A critical examination of food losses in formal and informal maize supply chains is required in order to develop worthwhile solutions for farming communities across the island state. FAO and its partners are grateful for the financial support and partnership of the Government of Ireland, who through its support of the the United Nations Joint Project (UNJP), made funding available for this assessment and final report. vi Acknowledgements The authors of the study Acacio da Costa Guterres, Vicente de Paulo Correia and Adelino Pimentel Do Rego from the National University of Timor Lorosa’e (UNTL) would like to thank the Government of Ireland, the Food and Agriculture Organization of the United Nations (FAO) and the International Fund for Agricultural Development (IFAD) for providing funding and technical support to conduct this research project. Special thanks are also go to Mr Cephas Taruvinga (FAO), Ms. Myriam Annette (FAO) and Ms Paula Lopes da Cruz (FAO Country Representative for Timor-Leste), who provided valuable guidance and support for this research project. Their gratitude is extended to all staff at the Faculty of Agriculture, National University of Timor Lorosa’e (UNTL) for their support during the fieldwork.
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