The ugly fruit movement is much bigger than that, and has its own markets and sale areas. Farmers (often in collaboration with startups (not all for-profit)) will divert this produce to sell to the middle-class people worried about this, since they pay more than the jam makers, but at the end of the market day some will throw away leftovers which are not worth the time to haul back, sort, etc. So it can actually increase food waste.