Taking all of your organic food scraps, including coffee grounds and eggshells (excluding meat, bones, skin and lard) and throwing it in layers on a compost pile eventually breaks it down and becomes nutrient-rich fertilizer. You must keep the amounts in proportion and add grass clippings and other yard debris as well, but when done right you are helping to complete the cycle of life. This is one of the best ways to dispose of (food) waste.
Read more: http://www.doityourself.com/stry/5-different-types-of-waste-disposal-systems-explained#b#ixzz38bxrly00