Table 1 Summary of impacts of reducing losses and waste in the market for a food commodity
| Â | Impact on market equilibrium | Welfare impacts in the commodity market | Factors of influence and impacts | |||
|---|---|---|---|---|---|---|
Reducing losses in supply | Price | Quantity | Consumers | Producers | Total | Extent of food losses relative to the size of the market |
Perfectly inelastic demand curve | - | Constant | + | Constant | + | If losses increase (decrease) with scale and price, then impacts are larger at higher (lower) scale and price |
Perfectly elastic demand curve | Constant | + | Constant | + | + | Impacts may be smaller if not all losses are avoidable |
Perfectly inelastic supply curve | - | + | + | ? (− in example) | + | If loss reductions involve costs then welfare impacts will be lower. This has a price increasing and quantity reducing effect. |
Perfectly elastic supply curve | - | + | + | Constant | + | Interactions within the supply chain and with other actors and/or markets ? |
Reducing waste in demand | Price | Quantity | Consumers | Producers | Total | Extent of food waste relative to the size of the market |
Perfectly inelastic demand curve | - | - | + | - | - | If waste increases (decreases) with scale and decreases (increases) with price, then impacts are larger at higher (lower) scale and lower (higher) price |
Perfectly elastic demand curve | - | - | Constant | - | - | Impacts may be smaller if not all waste is avoidable |
Perfectly inelastic supply curve | - | Constant | + | - | - | If waste reductions involve costs then welfare impacts will be lower. This has a price increasing and quantity reducing effect. |
Perfectly elastic supply curve | Constant | - | Constant | Constant | Constant | Consumer preferences: if consumers spend savings from reducing waste: positive impact on price, quantity and welfare of producers and consumers in other commodity markets |
| Â | Â | Â | Â | Â | Â | Interactions within the supply chain and with other actors and/or markets ? |