I work in the food packing industry, why they never liked wonky veg was very simple, the older style of packaging machines did not work with wonky veg, its also harder to clean and comes with a higher damaged rate.
THE CUSTOMER DID NOT WANT IT.
All of it went into the commercial ingredients any way or pet food. There never was waste with open contracts and sales.
Wonky veg and bleating farmers and the like only really started when the supermarkets started dealing direct with a whole farm or a growers coop. Here the farmer would agree to supply so many tons of say carrots per week at a set certain size. Its easier to the buyer and seller if you quantify what you want in the first place. Supermarkets would specify the colour they wanted the carrots to be, the size shape and condition. The farmer gets a contract with a pre agreed price and volumes required. In theory its a good idea.
Where it goes wrong is that its impossible for anyone to grow perfect veg every day. So a lot can fall outside the specified size and shape. But since the farmer has a contract to sell all his veg to the supermarket, he is left with huge piles of wonky veg he cant sell or give away as its the property of say tescos.
The technology of the food packers has improved to the point they can now handle this veg.
ITS A CHEAP SALE WITH A HIGH PROFIT, after all its just waste veg thats already paid for out of the contract that the farmer cant sell. But you the supermarket can agree an out of contract specification waste value. Theres a higher profit line to Morrison's to wonky veg than standard carrots due to the purchase prices. Yes thats right, wonky veg is a great earner for super markets. After all if it did not make a profit they would not sell it.
If you look into the sale of whole sale commercial food ingredients items. you will find huge amounts of very very weird stuff available.