The Bitter Bread Battle: Waste and Competition in China's Bakery Industry
**The Hungry Market: The Dark Side of Bread Waste in China** In recent years, the ever-rising cost of bread has become a hot topic in China. Alongside this, the issue of bakery stores reporting high rates of loss has attracted public attention, with some reporting losses as high as 50%. Pricey bread, coupled with shocking waste, has left many wondering what is going on.
1 March 2024
Industry insiders have explained that the shelf-life of baked goods is very short, often no more than four hours. After 24 hours, there is a risk of spoilage. Given the short shelf-life of these products, one might ask why bakeries do not simply produce less product?
The answer, as it turns out, lies in the desire for visually appealing, fully stocked shelves. This desire, driven to stimulate consumers' buying appetites and showcase the bakery's prowess, has become a significant contributor to food waste. From the bakery's perspective, a well-stocked shelf isn't just visually pleasing, it also serves to underscore the bakery's status and capacity. Furthermore, the fear of spoilage often drives bakeries to overproduce, aiming to offset losses from inevitable waste. The end result can be seen in a competitive market - bakeries are reluctant to reduce prices for fear of impacting regular sales and diminishing the perception of the brand.
Under China's Regulations on the Prevention and Control of Food Waste, severe food waste in food production and operations can result in admonishment of the legal representative or major responsible person by the county-level people's government's market supervision, business, etc. However, the challenge lies in defining what constitutes "serious food waste". Additionally, since the reporting of losses is self-administered, it's not uncommon for bakeries to sidestep the risk of being investigated for high loss rates. To reduce bread waste in bakeries, it's imperative for authorities to strengthen their oversight and strictly enforce food waste prevention and control laws.
This, however, is only part of the solution. The private sector also needs to shift its business mentality to minimize wasteful practices. One approach is to use precise market research to gauge consumer demand, thereby avoiding overproduction. Furthermore, through technological advancements, the lifespan of the products can be extended, resulting in less waste. Innovative sales approaches or repurposing unused bread can also be explored. The practice of maintaining high prices, built on the back of wasteful practices, ironically ends up branding the bakery as wasteful. In a competitive market, the 'thin profit, high sales' strategy is not just a recipe for success, it's also an effective way to demonstrate corporate responsibility and maintain brand image.
As a society, it's essential to interrogate our relationship with food. Waste is often driven by the throwaway culture we've cultivated. Initiatives like 'Love for Food, not Waste' have been launched across China to educate consumers about the environmental and socioeconomic costs of food waste. As we confront the issue of food waste in bakeries, it's crucial to explore how we, as consumers, can also contribute to reducing waste in food production and supply. The story of bread waste in China serves as a cautionary tale, revealing the dark side of the competitive market. Yet, it also underscores the need for a collective shift towards a more sustainable, less wasteful food culture. From the bakery to the consumer, it's time for us all to take responsibility.