International

FAO asks for investments in packaging sector in developing countries

Packaging

The companies are adviced to use the opportunity to invest in the packaging sector of low-income countries.

Posted on Jun 25 ,13:23

FAO asks for investments in packaging sector in developing countries

There is a high potential for investors willing to develop the packaging sector of low and medium income countries, says a UN's Food and Agriculture Organization expert.
The industry has developed well in the high-income markets offering solutions such as Convenient portion sizes, uniformity in "use by" and "best before" dates, and new packaging technologies that prolong shelf life, all of that being meant to reduce food losses.
Nevertheless, developing countries are confronted with a lack of modern technologies, the packaging sector evolving at its very basic level.

"Good-quality packaging materials that we take for granted – cans, bottles, Tetrapaks, and the like – are just not locally available in lower-income countries. In low-income countries, particularly in the small- and medium enterprise sector of agro-industry, food packaging is still at a very basic level of development", explained Robert van Otterdijk, FAO agro-industry officer, food loss and waste expert, while speaking at 7th Global Packaged Summit.

Not only are good-quality packaging materials unavailable, but there is a lack of equipment for filling the containers with food, Van Otterdijk said. Packaging materials would have to be imported, requiring investment beyond the means of most small companies, and making the final food products too expensive and uncompetitive with the products of larger manufacturers or foreign food companies.

"This situation is a big obstacle to value chain development and income generation in rural areas, where the agricultural raw materials are abundantly available," said van Otterdijk. "Fruits, vegetables, milk, meat, fish – these are the perishable foodstuffs that require processing and packaging to avoid food loss."

According to FAO, one-third of all food produced for human consumption is either wasted or lost. This amount of food would be enough to meet global food needs. However, research from FAO has shown that from an economic standpoint there is a high potential for the packaging industry itself to invest in developing countries.

"Considering the growing production and processing of food in developing countries and the correlated need for packaging materials and equipment, there must be a strong economic incentive for the packaging industry to invest in local manufacturing.", added van Otterdijk.

Food loss and waste is the subject of a special target under the globally agreed Sustainable Development Goals. The target is to reduce by half by the year 2030 the level of global food waste at the retail and consumer level, and reduce food losses along production and supply chains including post-harvest losses, informs FAO in a press release.

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