Up to 30 per cent of what’s produced on Australian farms ends up wasted but one mushroom grower is finding an innovative way to try to make every stem count.

With the cost of living crunch continuing to bite, Australia’s appetite to reduce food waste is firmly on the table.

A proposal to incentivise farmers and supermarkets to donate surplus food instead of dumping it is expected to be debated in the Senate this week.

Up to 30 per cent of what’s produced on Australian farms ends up wasted, but one mushroom farmer in Melbourne is already trying to make every stem count.

“We’ve been working very closely with my buyer to limit any wastage … so we then adjust our supply volumes,” Georgia Beattie from Bulla Park told AAP.

“I’ve either got too many mushrooms or not enough.”

Atop a mushroom mound, this waste warrior knows more can be done, and described the plans to incentivise farmers to donate surplus food as a “game-changer.”

She also plans to build a zero waste studio at her farm at Buller’s Rest in Melbourne to give her mushrooms and other produce a second life.

The drying facility aims to maintain the nutritional profile of the fruit or vegetable while also increasing its shelf life.

“The problem I have is perishability so rather than having to find a home for the mushrooms in three or four days – otherwise they go to waste – I’ve then got this option to dry them,” she said.

Bulla Mushrooms is positioned close to the distribution centre where farmers drop their goods.

And the plan is for the multi-million dollar zero waste facility, helped in part by a grant from its customer Coles, to eventually open to all nearby farmers.

“Sometimes what happens at a (distribution centre) is a product’s rejected because it got there too late, or it’s not within spec, so I’m happy to take them and dry them.”

Ms Beattie, who also sits on the board of the food charity Second Bite which rescues and redistributes food, wants a rethink on how fresh produce is treated.

The studio idea has won the support of Second Bite CEO Daniel Moorfield.

“By having a facility that can actually convert it into something which would allow it to be used for a longer period of time, that’s so important,” he said.

Data shows more than a billion kilograms of fresh food and vegetables are wasted on Aussie farms every year.

The world needs to produce 60 per cent more food to feed a growing population by 2050, according to the United Nations.

“Anything we can do to take that food surplus that Australian farmers produce and actually give it to those in need would be so good,” Mr Moorfield said.

Almost half of all Australians interviewed in a national survey for the charity last September admitted to skipping at least one meal a week due to economic reasons.

“Our need is worse than ever, people are more cognisant of food waste and what they can do to reduce it,” he said.

The zero waste facility, which is to be powered by solar and wind, could be up and running by as early as the end of 2025.

—AAP