Source: PENNSYLVANIA STATE UNIVERSITY submitted to
OPPORTUNITIES FOR IMPERFECT FOOD: ANALYZING PREFERENCES ALONG THE AGRI-FOOD VALUE CHAIN
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
ACTIVE
Funding Source
Reporting Frequency
Annual
Accession No.
1029827
Grant No.
2023-67023-39107
Cumulative Award Amt.
$647,421.00
Proposal No.
2022-10647
Multistate No.
(N/A)
Project Start Date
May 1, 2023
Project End Date
Apr 30, 2026
Grant Year
2023
Program Code
[A1641]- Agriculture Economics and Rural Communities: Markets and Trade
Recipient Organization
PENNSYLVANIA STATE UNIVERSITY
408 Old Main
UNIVERSITY PARK,PA 16802-1505
Performing Department
(N/A)
Non Technical Summary
Reducing food waste is one of the most effective ways to improve food security and diminish the food system's carbon footprint. Approximately 20% of discarded food is wasted for cosmetic reasons, on account of being too misshapen, missized, or blemished to sell. This project aims to investigate opportunities for imperfect foods to enter the market and reduce food waste. Unlike previous literature, which focuses almost entirely on the consumer side of imperfect foods, we propose to analyze the entire value chain, covering not only consumers but also producers (e.g., growers and farmers), input suppliers, distributors, and retailers.In this proposed project, the main research objective is two-fold: (1) analyzing what drives suppliers to adopt imperfect food production; and (2) investigating what drives consumers to demand more imperfect food. We aim to examine current practices, potential, and perceptions of imperfect foods from the supply side using in-depth interviews and an industry survey with key value chain actors like growers, distributors, produce associations, and grocers. This will allow us to identify broad opportunities and challenges across the entire value chain. We aim to examine consumers' preferences and demand for fresh and processed imperfect produce using a national consumer online experiment and survey. Information on preferences and demand can bring more imperfect foods to market, which could decrease food waste while helping farmers sell their products.The ultimate goal of this project is to inform management practices and policy interventions that simultaneously increase the social acceptance of imperfect produce while aiding its production, in terms of improved efficiency and cost-effectiveness. Results from this project will help policymakers and entities interested in expanding food rescue programs providing a better understanding of what limits and what fosters imperfect food rescue. It will also provide actors in the imperfect food value chain with rigorous, empirical research into the fundamental factors that drive successes and failures in the expansion of sustainable production practices.
Animal Health Component
30%
Research Effort Categories
Basic
60%
Applied
30%
Developmental
10%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6015010301040%
6045010301030%
6075010301030%
Goals / Objectives
Reducing food waste is one of the most effective ways to improve food security and diminish the food system's carbon footprint. Approximately 20% of discarded food is wasted for cosmetic reasons, on account of being too misshapen, missized, or blemished to sell. The overarching goal of this project is to investigate opportunities for imperfect foods to enter the market and reduce food waste. We focus on the entire value chain of imperfect foods, covering producers, distributors, retailers, and consumers. To accomplish this goal, we formulate the following supporting objectives.In Objective 1, we document the status quo by summarizing current management practices relevant to the supply of imperfect produce. We do this using in-depth interviews with key value chain actors. The online and in-person in-depth interviews with the value chain actors will occur in months 10-15 of the project. The major outputs of this activity are insights and feedback from the value chain on opportunities, challenges, and best practices for offering imperfect foods, as well as main (and potential) channels to source and sell imperfect foods. The information gained from the in-depth interviews will allow us to paint a holistic picture of the current state of imperfect foods, as well as expected future directions.In Objective 2, we use an industry survey to identify factors that impact retailers' decisions to sell imperfect foods. We will conduct a national online survey of about 400 stakeholders in the produce industry in months 19-24. The questions in the industry survey will span across five major sections: (1) current industry practices and barriers for selling imperfect foods; (2) potential future industry practices for selling imperfect foods; (3) pros and cons associated with bringing imperfect foods to market; (4) perceptions of consumer preferences for imperfect foods; and (5) producer characteristics. Major outputs from this activity are data on current practices, adoption likelihood for imperfect produce selling practices, and perceptions about consumer demand. In months 25-29, we will prepare and analyze the empirical data, prepare summary statistics, and conduct multivariate statistics. The major output(s) from this activity will be the industry report.In Objective 3, we use a consumer survey to evaluate consumers' willingness to pay for fresh and processed imperfect foods. We investigate how people's decisions are driven by information on the potential social benefits of imperfect produce (e.g., reduced food waste, increased farmer supply, and climate change mitigation). In months 12-20, we will conduct an online survey experiment with a sample of 1,600 adults from the U.S. This study will enable us to determine the value consumers place on imperfect foods, including both fresh and processed varieties, based on product appearance. Further, the study will yield insight into how information impacts consumers' values for imperfect produce. By combining the results from consumer choice modeling with information about people's socio-demographics, attitudes, experiences, and perceptions, we will be able to demonstrate how consumer demand for imperfect produce depends on multiple factors.In Objective 4, we fuse all findings to develop and deliver outreach materials for value chain participants. To disseminate project results to industry stakeholders and academic audiences, we will host theproject website that will serve as the repository for all project-related activities. We will draft a technical report and manuscript(s), develop targeted extension publications, host webinars, and participate in conferences to present research findings to industry, government, and academics. The varied background of our industry contacts will ensure that we develop targeted and accessible outputs for all audiences. The ultimate goal is to inform management practices and policy interventions that simultaneously increase the social acceptance of imperfect produce while aiding its production, in terms of improved efficiency and cost-effectiveness.
Project Methods
For Objective 1: "Value chain studies--Challenges and opportunities for imperfect produce", we will first conduct desk research on the value chain of imperfect produce to develop a thorough understanding of the links in the chain, from farmers growing imperfect produce all the way through retailers selling imperfect produce to customers. After this initial phase, we will schedule and coordinate 20 in-depth interviews with different types of stakeholders (e.g., growers, distributors, produce associations, and grocers). During the interviews, we will discuss prior experiences supplying and/or advocating for produce that is misshapen, missized, or blemished; status quo management practices and tradeoffs surrounding imperfect foods (e.g., discard versus sell); current supply-side challenges related to bringing imperfect foods to market; current perceived demand-side challenges related to bringing imperfect foods to market, in tandem with perceived consumer perceptions of imperfect foods; expected barriers to imperfect foods, including economic and social barriers; potential future opportunities for imperfect foods, including expected channels to source and sell imperfect foods; current implementation of sustainable practices; and future expected use of sustainable practices. We will then clean and prepare the data collected from the in-depth interviews and analyze them using content analysis, and univariate and multivariate statistics. We will then present our findings and prepare manuscript(s). We will summarize the general opportunities and challenges related to bringing imperfect foods to market, as well as identify potential miscommunications across different links of the value chain. We will use the findings to establish best practices for selling imperfect produce, and we will aim to identify key market channels.In Objective 2: "Produce industry studies--Practices supplying imperfect produce", we will conduct an industry survey to evaluate status quo practices related to supplying imperfect foods on a national scale. Evidence on the economics of supplying imperfect foods is scarce, and we hope to fill this gap with our national online survey. The questions in the industry survey will span across five major sections: (1) current industry practices and barriers for selling imperfect foods; (2) potential future industry practices for selling imperfect foods; (3) pros and cons associated with bringing imperfect foods to market; (4) perceptions of consumer preferences for imperfect foods; and (5) producer characteristics. This will allow us to determine whether the practices that are currently adopted or considered by producers correspond to the practices that research suggests will provide the greatest effect on efficiency gains, reduction of food waste, and climate change mitigation. It will also allow us to assess the adoption likelihood for imperfect produce selling practices, and perceptions about consumer demand. This activity's major output(s) will be an industry report, and the development of recommendations for practices to sell imperfect produce. The recommendations will fuse findings from the national survey and the demand side to ensure that the strategies are both feasible and cost-effective.In Objective 3: "Consumer studies--Demand and WTP for imperfect produce", we will conduct an online choice experiment and survey with a sample of 1,600 adults from the US to determine the willingness to pay for fresh and processed imperfect products. We also analyze whether information treatments on the positive effects of purchasing and consuming imperfect produce can impact willingness to pay for imperfect foods. We hypothesize that participants will report a higher willingness to pay for imperfect produce when given the information treatments, especially for processed products for which imperfect appearance is not noticeable. In the online choice experiment survey, participants will face a series of choice questions, in which they will be asked to choose between "imperfect" and "perfect" versions of fresh and processed products at different prices. For the fresh product choice, participants will choose between an imperfect organic, a perfect organic, an imperfect standard, a perfect standard tomato, and a "no buy" option. For the processed product, participants will choose between labeled and unlabeled tomato sauce (with the label denoting that the product was made with "ugly" produce), again both in the organic and standard versions, and a "no buy" option. We offer participants the choice between organic and standard produce since we hypothesize participants are more willing to accept imperfections in organic produce. To study the impact of information on the willingness to pay for imperfect produce, we will then divide participants into random groups that will receive information on how imperfect produce can reduce food waste, help farmers, and benefit the environment. We will then analyze the data from the online choice experiment using Discrete Choice Models based on Random Utility Theory (McFadden, 1974). We will then prepare a manuscript summarizing the findings of the choice survey experiment and the survey. Objective 3 will enable us to determine the value consumers place on imperfect foods, including both fresh and processed varieties, based on product appearance. Further, the study will yield insight into how information impacts consumers' values for imperfect produce. By combining the results from consumer choice modeling with information about people's socio-demographics, attitudes, experiences, and perceptions, we will be able to demonstrate how consumer demand for imperfect produce depends on multiple factors.Objective 4: "Outreach: Disseminate research findings to stakeholders and academic audiences" consists of several efforts. First, we will host a project website that will serve as a repository for all project-related activities to disseminate project results to industry stakeholders and academic audiences. We will draft a technical report and manuscript(s), develop targeted extension publications, host webinars, and participate in conferences to present research findings to industry, government, and academics. The varied background of our industry contacts will ensure that we develop targeted and accessible outputs for all audiences.

Progress 05/01/23 to 04/30/24

Outputs
Target Audience:We have contacted several actors in theproduce value chain (e.g., growers, distributors, produce associations, and grocers). We have participatedin regional and national agricultural economics conferences and agribusiness-marketing meetings and started conducting in-depth interviews with some agricultural producers. Changes/Problems:Two investigators who were initially part of the project have changed institutions, and one former consultant from the project has now become an assistant professor and will have an increased role in the project. Due to these changes, we have requested a modification in the Principal Investigator. We will be working on creating new subawards with the involved institutions in the coming months. What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?We plan to conduct and analyse the data from the consumers' survey, and to continue conducting in-depth interviews with actors in the produce value chain.

Impacts
What was accomplished under these goals? We havedesigned and piloted the experimental survey for consumers. We have alsostarted contacting actors in the food value chain to document the status quo of the supply of imperfect produce.

Publications