From experience, a lot of this stuff gets redirected to jail and prison kitchens where the labor is free or cheap. Then those guys get to spend their days cutting out eyes and sprouts and sorting the ones full of maggots out as best they can (they're not 100% effective). And then they get served to the denizens.

[the jail I was at would regularly receive entire 40ft semi trucks filled with wet bags of potatoes that were rotting and covered in flies]