World

Unhealthy eating causes $8 trillion in hidden costs annually


A report by the Department of Food and Agriculture (SOFA) confirms that the hidden costs of getting food from farm to table amount to about $12 trillion annually.

Of this, about 70% – $8 trillion – arises from unhealthy diets and is linked to NCDs, far outweigh the costs associated with environmental degradation and social inequality.

The true cost of food

SOFA 2024 builds on last year’s edition, which found that hidden costs exceeded $10 trillion, to provide even more in-depth analysis.

The researchers used a realistic costing approach to map out the full range of costs and benefits associated with food production, distribution, and consumption, including so-called “costs and benefits.” hidden benefits” are not reflected in the market price.

The report details how global hidden costs are primarily driven by health-related hidden costs, followed by environmental hidden costs, in more industrialized agri-food systems.

When considering the health impact, 13 dietary risk factors have been identified, including not eating enough whole grains, fruits, and vegetables; consuming too much sodium; and eat lots of red and processed meat.

A woman fleeing violence in Sudan's capital Khartoum shows wheat she grew in Al Dabbah, in the north of the country.

© WFP/Abubakar Garelnabei

A woman fleeing violence in Sudan’s capital Khartoum shows wheat she grew in Al Dabbah, in the north of the country.

Differences between systems

The report also reveals how hidden costs manifest themselves in different types of agri-food systems around the world, which have transitioned from traditional to industrial, with varying results.

The researchers used a framework to classify them into six distinct groups – protracted, traditional, expanding, diversified, formalized and industrial – thus allowing a clear understanding of the target about their unique challenges and opportunities.

Environmental impact, social costs

the environmental impact Unsustainable agricultural practices also contribute significantly to the hidden cost burden, the report said.

Costs associated with greenhouse gas emissions, nitrogen runoff, land use change and water pollution are especially high in countries with diverse agricultural systems, estimated to be as high as $720 billion.

Although formalization and industrial and formal agrifood systems also face significant environmental costs, countries facing protracted crises bear relatively the highest environmental costs. , equivalent to 20% of Gross Domestic Product (GDP).

Meanwhile, poverty, malnutrition and other problems social costs most prevalent in traditional agri-food systems and those affected by protracted crises, accounting for 8 and 18% of their GDP, respectively.

Fresh fruits and vegetables on display at Boqueria market in Barcelona, ​​​Spain.

© FAO/Alessia Pierdomenico

Fresh fruits and vegetables on display at Boqueria market in Barcelona, ​​​Spain.

Change is transformative

SOFA 2024 calls for collective action to transform agri-food systems and transform them more sustainable, more resilient, more comprehensive and more effective.

FAO General Manager Dongyu Qu emphasized that this change is fundamental to achieving the goal Sustainable development goals (SDG).

The choices we make now, the priorities we set and the solutions we implement will determine our collective futurehe said.

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