Food loss and waste (FLW) is the greatest contributor to the inefficient use of land, water, and energy resources for food production and causes about half of total greenhouse gas emissions from our global agri-food system. Recycling FLW into animal feed is the most valuable resource recovery option that must be used as part of the transformation into more circular, sustainable, and resilient agri-food systems. Food loss and waste occurs in all countries and at all stages of the food supply chain beginning at the farm level and ending at the post-consumer level, but the amount, types, and causes of FLW at each stage vary by geographic region and economic status of countries. The major barriers to using FLW in animal feed include lack of government policy and economic incentives; lack of infrastructure for collection, processing, and distribution; and feed safety laws and regulations associated with animal-derived FLW sources. Most FLW is derived from plants, and the feeding value can be enhanced by co-ensiling and fermentation. Heat processing animal-derived FLW at 100 °C for 20 minutes destroys nearly all disease-causing agents. Greater use of FLW in animal feeds is needed to overcome the ecosystem costs associated with intensive livestock and poultry production.