How can the hidden costs and benefits of agrifood systems be effectively incorporated into decision-making for transformation?
Agrifood systems provide vital benefits to society, not least because they produce the food that nourishes us, provide jobs to over a billion people and shape cultural identities. Nevertheless, they also contribute to climate change, natural resource degradation, and biodiversity loss, while failing to ensure access to a healthy and affordable diet for everyone. The complexity and interdependencies of agrifood systems make it challenging for decision-makers to incorporate the costs and benefits they generate into decision making.
The 2023 edition of FAO’s flagship publication “The State of Food and Agriculture 2023” (SOFA 2023) has the theme “Revealing the true cost of food to transform agrifood systems”. By introducing the concept of the hidden costs and benefits of agrifood systems and providing a framework through which these can be assessed, this report aims to initiate a process that will better prepare decisions-makers for actions to steer agrifood systems towards environmental, social and economic sustainability. The report presents the results of national-level true cost accounting (TCA) assessments for 154 countries, and estimates that the global quantified hidden costs of agrifood systems amount to 10 trillion 2020 PPP dollars in 2020 or more (approximately 10 percent of global GDP). This underlines the urgent need to factor these costs into decision-making to promote agrifood systems transformation towards sustainability.
The SOFA 2023 report also affirms that, while the global estimates of the hidden costs quantified in the report are useful to raise awareness on the magnitude of the challenge, more research and evidence are needed for the design and the implementation of concrete actions and investments to address the hidden costs and enhance the benefits of agrifood systems. This should be done through targeted assessments based on TCA, which take into account the local contexts to refine the national estimates and consider the costs of different paths of transformation.
Given the relevance of this topic, for the first time since the launch of the SOFA publication in 1947, FAO is dedicating two consecutive issues to the same theme. The SOFA 2024 will showcase the flexibility of TCA in its application to different scopes, from an entire agrifood system down to a single product. Through a wide range of case studies, it will demonstrate the importance and challenges of incorporating the hidden costs into decision-making to evaluate different policy and management options to transform agrifood systems for the better. Its ultimate goal is to better prepare decisions-makers for actions to steer agrifood systems towards environmental, social and economic sustainability.
The SOFA team invites stakeholders to share illustrative examples (case studies) of existing or ongoing assessments of hidden costs and benefits of agrifood systems to ensure a wide range of coverage around the globe and across sectors. We also encourage contributions that elaborate on how such assessments have been used to inform decision-makers and other stakeholders in implementing transformative actions towards sustainable agrifood systems.
Contributions can include (but are not limited to) validation of the preliminary assessment of hidden costs presented in SOFA 2023, assessments of how the TCA approach can be tailored to the priorities of policymakers in different contexts and identification of areas for further analysis. Recognizing the complexity of covering all hidden cost dimensions, this call for submissions also targets contributions/case studies that look at two or more aspects of the hidden costs under environmental, social or health categories. These can include hidden cost sources such as water scarcity, greenhouse gas emissions, health consequences of unhealthy dietary patterns, or social consequences (including poverty and undernourishment) in a specific location of a country/region.
The final aim is to collect relevant inputs, key messages, and country level case studies to contribute to the writing process of SOFA 2024 (to be published in November 2024). The SOFA team will review and select pertinent case studies to feature in the report considering the relevance and contributions to diversity (geographic, sectoral and methodological) of each case.
The call is open until 29 January 2024.
How to take part in this call for submissions:
1. Using the submission template
To take part in this Call for submissions, please register to the FSN Forum, if you are not yet a member, or “sign in” to your account. Please download the submission template in any of six UN languages (English, French, Spanish, Russian, Arabic and Chinese) and upload the completed form in the box “Post your contribution” on this webpage. Please keep the length of submissions limited to 2,000 words and feel also free to attach relevant supporting materials.
2. Using an Artificial Intelligence (AI)-based interviewer application
Instead of using a submission template, would you like to try using an Artificial Intelligence (AI)-based interviewer application to provide your contribution? The questions in an AI-based interviewer application are similar to the submission template, but the flow would be managed in a more dynamic way as in qualitative in-person interviews, such as Key Informant Interviews (KII). Please note that the AI interface is only available in English, and you may stop and resume your qualitative AI survey experience at any time. If you would like to experience a real-world-like qualitative interview by providing your input through an AI based interviewer application, please click here.
For any technical support regarding downloading or uploading the submission form, or using the AI application please send an email to [email protected].
We look forward to receiving your valuable contributions, which will undoubtedly enhance the content of SOFA 2024.
Co-Facilitators:
Andrea Cattaneo, Senior Economist and Editor of The State of Food and Agriculture (SOFA), Agrifood Economics and Policy Division (ESA)
Aslihan Arslan, Economist, SOFA, ESA
Ahmad Sadiddin, Economist, SOFA, ESA
Theresa McMenomy, Economist, SOFA, ESA
Elisa Ranuzzi, Intern, SOFA, ESA
Please read the article on more FAO publications on the SOFA topic here.
- Read 70 contributions
How can the hidden costs and benefits of agrifood systems be effectively incorporated into decision-making for transformation?
Developing countries are hardly affected by overpopulation, climate change, disease burden and conflict. They almost dependent on agrofood which still under production efficiency hampered by aforementioned challenges. Wider range of agriculture inputs are also imported and used without cost benefit analysis, health risk assessment and risk of resistance.
Thus, need to assess and provide these hidden costs and benefits of agrifood systems to be effectively incorporated into decision-making for sector and community transformation in Africa, particularly in over growing populated Ethiopia.
A holistic approach should be used because there are several ways to effectively incorporate the hidden costs and benefits of agrifood systems into decision-making for transformation. One of these ways is to conduct a cost-benefit analysis including the hidden costs and benefits, for example, environmental and social impacts. Second way is to use a decision-making framework by incorporating these factors, such as the triple bottom line or the sustainability triple helix. And lastly, it is also important to involve stakeholders in the decision-making process, including farmers (small holders inclusive), consumers, and local communities. By incorporating these hidden costs and benefits into the decision-making process, agrifood systems can be transformed in a more sustainable and equitable way. This means that decisions about food production, distribution, and consumption will take into account the environmental, social, and economic impacts of agrifood systems. This transformation will help to ensure that food is produced in a way that is environmentally friendly, provides fair compensation for farmers, and promotes healthy and affordable food for consumers. It will also help to ensure that the benefits of agrifood systems are shared more equitably across all stakeholders mentioned above.
Dr. Muhammad Bello Garba
SSUES, Sokoto - Nigeria
How can the hidden costs and benefits of agrifood systems be effectively incorporated into decision-making for transformation?
Effectively incorporating the hidden costs and benefits of agrifood systems into decision-making for transformation requires acknowledging both tangible and intangible factors. Known elements include visible economic expenses, such as production and transportation costs, which can be readily quantified. However, the challenge lies in capturing the hidden costs, such as environmental degradation and health impacts, which often elude standard accounting methods. Recognizing these hidden impacts necessitates a shift towards holistic valuation frameworks that consider ecological, social, and health dimensions. What remains unknown is a universally accepted methodology for quantifying and valuing these hidden dimensions consistently. The lack of standardized metrics hinders the seamless integration of these factors into decision-making processes. Developing comprehensive and standardized approaches to assess both the costs and benefits, along with fostering a broader understanding of their interconnectedness, is essential for steering agrifood systems towards sustainability and resilience.
Hence, incorporating hidden costs and benefits of agrifood systems requires holistic valuation, considering environmental and societal impacts. Standardized metrics are crucial for consistent assessment, fostering informed decision-making for sustainable transformation.
Au moins 10.000 milliards de dollars par an. C'est le montant des coûts cachés des systèmes agroalimentaires actuels, calculé par l'Organisation des Nations unies pour l'alimentation et l'agriculture (Food and agriculture organisation, FAO), dans un rapport publié ce lundi 6 novembre. L'impact de ces systèmes sur la santé, l'environnement et la société, équivaut ainsi à presque 10% du produit intérieur brut (PIB) mondial, alerte la FAO.
Plus de 70% des frais occultes liés à la production de biens et de services agroalimentaires sont dus à des régimes alimentaires trop riches. Or, ils causent des maladies chroniques non-transmissibles, et donc, une perte de productivité de la main-d'œuvre, alerte un rapport de l'Organisation des Nations unies pour l'alimentation et l'agriculture (FAO). Un cinquième de ces coûts sont environnementaux.
L'étude, menée dans 154 pays, chiffre notamment les frais occultes de ces systèmes : émissions de gaz à effet de serre et d'azote, utilisation de l'eau, effets sur la conversion des terres et sur la pauvreté, pertes de productivité générées par de mauvais régimes alimentaires. Résultat, plus de 70% de ces coûts sont dus à une alimentation trop riche en produits ultra-transformés, en sucres et en graisses. Or, ceux-ci sont à l'origine d'obésité et d'autres maladies chroniques non-transmissibles, générant des pertes de productivité de la main-d'œuvre. Ces coûts sont particulièrement importants dans les pays à revenus élevés et à revenus intermédiaires de la tranche supérieure, observe la FAO.
SUSTAINABLE AGRICULTURE/FOOD WASTE IS NEITHER A RISKY NOR AN UNCERTAIN/IMPOSSIBLE BUSINESS SINCE 1975 AT LIAQAT CORP (PVT) LTD, BY FIELD-BASED MOBILE COMMERCIAL INNOVATIVE INDUSTRIALIZATION FOR ZERO FOOD WASTE AT TECH TRANSFER BASIS.
- Effectively incorporating the hidden costs and benefits of agrifood systems in Pakistan, particularly in Khyber Pakhtunkhwa (KP), into decision-making for transformation requires a comprehensive and multi-stakeholder approach. Here are key steps to achieve this:
- 1. Comprehensive Cost-Benefit Analysis (CBA):
- Conduct a thorough CBA that goes beyond direct economic impacts. Include environmental, social, and health-related costs and benefits associated with agrifood systems.
- Assess the positive externalities, such as ecosystem services, biodiversity conservation, and cultural values linked to traditional agricultural practices.
- 2. Stakeholder Engagement:
- Involve diverse stakeholders, including farmers, local communities, researchers, policymakers, and representatives from the private sector, in the decision-making process.
- Understand the perspectives and priorities of different stakeholders to ensure a holistic view of the hidden costs and benefits.
- 3. Data Collection and Research:
- Invest in research to gather region-specific data on hidden costs and benefits. This should include environmental degradation, health impacts, and socio-economic factors.
- Collaborate with research institutions and local organizations to enhance the quality and relevance of data.
- 4. Technology Integration:
- Leverage technology for data collection and monitoring. Remote sensing, IoT devices, and data analytics can provide real-time information on environmental impacts and agricultural productivity.
- Use digital platforms to disseminate information and gather feedback from farmers and communities.
- 5. Policy Integration:
- Integrate findings from comprehensive CBAs into policy frameworks at local, provincial, and national levels.
- Advocate for policies that incentivize sustainable and regenerative agricultural practices while internalizing the hidden costs associated with conventional methods.
- 6. Capacity Building:
- Build the capacity of local communities and farmers to understand and adopt sustainable practices.
- Provide training on modern and sustainable farming techniques that reduce hidden costs and enhance overall system resilience.
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7. Climate-Resilient Agriculture:
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- Develop and promote climate-resilient agricultural practices that consider the changing climate patterns in the region.
- Invest in research and technology that enables farmers to adapt to climate-related challenges, reducing the vulnerability of agrifood systems.
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8. Incentivize Sustainable Supply Chains:
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- Work with supply chain actors, including retailers and processors, to create and implement sustainability standards.
- Reward and incentivize adherence to environmentally friendly and socially responsible supply chain practices.
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9. Community-Based Initiatives:
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- Encourage and support community-based initiatives that focus on sustainable agriculture and food production.
- Facilitate the establishment of local cooperatives and farmer groups to share knowledge and resources.
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10. Green Financing:
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- Explore opportunities for green financing and investment in sustainable agriculture.
- Collaborate with financial institutions to create financial instruments that support eco-friendly farming practices.
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11.Policy Innovation:
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- Foster innovation in policy-making by exploring novel approaches to address hidden costs and benefits.
- Pilot programs and policy experiments to test the effectiveness of new strategies before scaling up.
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12. Adaptive Management:
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- Implement adaptive management strategies that allow for continuous learning and adjustments based on evolving conditions.
- Establish feedback mechanisms that involve stakeholders in the ongoing improvement of policies and practices.
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13. Crisis Preparedness:
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- Develop contingency plans and strategies to address agrifood system challenges during crises, such as pandemics or extreme weather events.
- Ensure that transformation initiatives are resilient to shocks and can quickly recover from disruptions.
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14. Research and Development:
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- Allocate resources for ongoing research and development to stay abreast of emerging issues and opportunities in agrifood systems.
- Support innovation that leads to the development of sustainable and technologically advanced farming practices.
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15. Policy Advocacy:
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- Engage in policy advocacy at various levels to create an enabling environment for sustainable agriculture.
- Collaborate with NGOs, think tanks, and advocacy groups to amplify the impact of the transformation agenda.
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16. International Certification:
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- Work towards obtaining and maintaining internationally recognized certifications for sustainable and organic agriculture.
- Access global markets by aligning with international standards, fostering economic opportunities for local farmers.
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By incorporating these strategies, policymakers and stakeholders can navigate the complexities of agrifood systems in Pakistan, with a specific focus on Khyber Pakhtunkhwa, and make informed decisions that lead to transformative and sustainable outcomes.
- 1. Comprehensive Cost-Benefit Analysis (CBA):
How can the hidden costs and benefits of agrifood systems be effectively incorporated into decision-making for transformation?
Agrifood systems have numerous hidden costs and benefits that impact social, environmental, and economic aspects. Incorporating these into decision-making involves several strategies:
Life Cycle Assessment (LCA): This method evaluates the environmental impacts of a product or system throughout its life cycle. It assesses inputs, outputs, and environmental impacts, aiding in understanding hidden costs like carbon emissions, water usage, etc.
Cost-Benefit Analysis (CBA): CBA assesses the monetary and non-monetary costs and benefits associated with agrifood systems. It helps in quantifying impacts that might not be immediately apparent, such as ecosystem services, health implications, or social welfare.
Transparency and Stakeholder Engagement: Encouraging transparency in the supply chain and engaging stakeholders—farmers, consumers, policymakers, and NGOs—helps identify and understand hidden costs and benefits better.
Policy Integration: Creating policies that internalize externalities—like imposing taxes on pollution or incentivizing sustainable practices—can better reflect the hidden costs and benefits within agrifood systems.
By integrating these approaches, decision-makers can have a more comprehensive understanding of the hidden complexities within agrifood systems, allowing for more informed and sustainable transformations
I have attached a paper I wrote with two colleagues for the University of Barcelona journal. It provides a policy option for the encouragement of regenerative farming. It is aimed at the European Union where farming has received generous subsidies for more than 70 years. In spite of this I think it has wider application as a mechanism to encourage regenerative farming in countries where such funding it not possible.
Incorporating the hidden costs and benefits of agrifood systems into decision-making is pivotal for the transformation towards sustainability. Agrifood systems are integral to human society, providing food, employment, and cultural identity. However, their impacts extend far beyond these visible benefits, encompassing environmental degradation, climate change, and social inequities. To address these challenges, a comprehensive approach that integrates these hidden costs and benefits into policy and practice is essential.
The True Cost of Agrifood Systems
The concept of True Cost Accounting (TCA) is instrumental in revealing the real value of agrifood systems. TCA quantifies the environmental, social, and economic impacts often overlooked in conventional analysis. For example, while agrifood systems contribute significantly to global employment, they also play a role in exacerbating climate change through greenhouse gas emissions. Similarly, while they provide essential nourishment, certain practices lead to biodiversity loss and resource depletion.
Environmental Costs
One of the most pressing issues in agrifood systems is their environmental impact. These systems are major contributors to greenhouse gas emissions, primarily through deforestation, livestock farming, and the use of fossil fuels in agriculture. Moreover, intensive farming practices result in soil degradation, water depletion, and pollution. To internalize these costs, decision-makers must implement policies that promote sustainable farming techniques, such as regenerative agriculture, which enhances biodiversity, improves soil health, and sequesters carbon.
Social and Health Costs
The hidden social and health costs of agrifood systems are equally significant. Unhealthy dietary patterns, encouraged by the availability of cheap, processed foods, lead to a rise in diet-related diseases. Additionally, there is a social disparity in food access, with undernourishment prevalent in some regions while others face the challenges of overconsumption and waste. Policies aimed at creating a more equitable food system are necessary, focusing on improving access to healthy foods and reducing food waste.
Economic Implications
The economic implications of these hidden costs are substantial. The current model of agrifood systems, which often prioritizes short-term gains, overlooks long-term sustainability. This approach can lead to increased expenses in the future, such as higher healthcare costs due to diet-related diseases or the costs associated with environmental remediation. Transitioning to sustainable practices, though initially more costly, can lead to long-term economic benefits, including job creation in sustainable agriculture sectors and reduced healthcare spending.
Policy Integration and Stakeholder Collaboration
Integrating TCA into policy development is crucial. This requires collaboration between government, industry, civil society, and consumers. Governments can implement policies that incentivize sustainable practices, such as subsidies for organic farming or taxes on carbon emissions. Businesses, on the other hand, can adopt sustainable practices in their operations and supply chains, driven by consumer demand for responsible products.
Consumer Awareness and Behavior
Consumer behavior plays a vital role in transforming agrifood systems. Educating consumers about the environmental, social, and health impacts of their food choices can motivate more sustainable consumption patterns. This shift in consumer demand can drive change in the agrifood industry, leading to more responsible production practices.
Case Studies and Practical Applications
To illustrate the application of TCA in different contexts, various case studies can be explored. For instance, a study in a water-scarce region could assess the impact of different irrigation techniques on water conservation and crop yield. Another case study might evaluate the health and social consequences of shifting from a meat-based diet to a plant-based one in a specific community.
Challenges and Future Directions
Despite the potential of TCA, there are challenges in its implementation. These include the difficulty of quantifying certain costs and benefits, the need for comprehensive data, and resistance from stakeholders accustomed to the status quo. Further research and development of methodologies for TCA are necessary to overcome these challenges.
In conclusion, effectively incorporating the hidden costs and benefits of agrifood systems into decision-making is a complex but essential task. It requires a holistic approach, encompassing environmental, social, and economic aspects. By adopting True Cost Accounting and engaging various stakeholders in this process, it is possible to transform agrifood systems into sustainable models that benefit both people and the planet. The journey towards this transformation will involve challenges, but the potential rewards - a sustainable, equitable, and healthy food system - are immense.
Hello,
Regarding your request for information for SOFA 2024: Chemical agriculture has failed as food is depleted in nutrients and soils, as well as being toxic & acidified, are depleted in organic matter, moisture, microbes & worms.
My 2018 meta-analysis showed average loss by about 83% - https://www.mdpi.com/2571-8789/2/2/33/htm .
Other meta-analyses found non-organic food depleted by up to 50% in nutrients with higher toxins & heavy metal burden - doi: 10.1017/S0007114514001366 ; DOI: 10.1080/09637486.2021.1981831.
Crop yields - despite counterclaims - are the same, or lower, in chemical farming which has been well proven at Rohamsed - https://vermecology.wordpress.com/2023/08/29/critical-decline-of-minera… .
Regarding SDGs, these will continue to fail without proper and solid soil foundation. Image source – https://vermecology.files.wordpress.com/2021/03/image-27.png from https://vermecology.wordpress.com/2021/03/09/triage-time/. Official global SDGs mention “soil” only twice in passing – www.globalgoals.org/goals/15-life-on-land/ (“forest” gets 15 hits, “water” 4!); many of the deadlines are by 2020 and all have failed.
Soil erosion & species extinction rates are now at extremes which should be priority issues.
Regards, Rob Blakemore PhD; VermEcology.
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