According to the 2023 edition of the State of Food and Agriculture compiled by the Food and Agriculture Organisation of the UN (FAO) covering 154 countries, the current agrifood systems in place impose huge hidden costs to health, environment and society, equal to at least USD10 trillion annually.
The largest hidden costs (more than 70%) are driven by unhealthy diets leading to obesity and causing labour productivity losses, a factor which is particularly high in upper and middle income countries.
One fifth of the total costs are environment related from green house gas and nitrogen emissions, land use change and water use. This is a global problem and the scale is probably underestimated.
The report makes the case for more regular and detailed analysis by governments and the private sector of the hidden or ‘true’ costs of agrifood systems via true cost accounting, followed by actions to mitigate these harms.
The report urges governments to use true cost accounting to transform agrifood systems to address the climate crisis, poverty, inequality and food security.
For further information, visit https://www.fao.org/newsroom