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
In order to effectively incorporate the hidden costs and benefits of agri-food systems into decision-making for transformation in Vanuatu, it is essential to conduct comprehensive cost-benefit analyses. This involves identifying and quantifying both the visible and invisible impacts of agricultural practices, such as environmental degradation, health implications, and social equity considerations. By utilizing tools such as economic valuation, life cycle assessments, and multi-criteria decision analysis, decision-makers can gain a more holistic understanding of the implications of different agricultural approaches. Furthermore, engaging with diverse stakeholders including farmers, consumers, and policymakers is crucial for capturing the full range of costs and benefits associated with agri-food systems. Additionally, building capacity for data collection and analysis within Vanuatu will be essential for ensuring that decision-making processes are informed by robust evidence. Ultimately, by integrating these hidden costs and benefits into decision-making processes, Vanuatu can work towards sustainable and resilient agri-food systems that deliver positive outcomes for both people and the planet.
Dear FSN Community,
As we are currently working on shaping SOFA 2024, I would like to express our sincere gratitude for the valuable contributions we have received so far, both through the submission template and the Artificial Intelligence (AI)-based interviewer application. We are closely following the submissions and expect to see an increased pace of promising submissions, such as the ones coming from TMG-Think Tank for Sustainability and the Food Insecurity Observatory. Your valuable inputs are truly appreciated!
We currently have case studies covering more than 20 countries (including those we have commissioned) and are aiming to increase our coverage in general and specifically of Latin America and the Caribbean (LAC) Region. If you have not yet submitted your contribution or if you know of colleagues in the LAC region who could provide valuable insights, we invite you to share this call for submissions with them.
I would like to kindly remind that the extended submission deadline is January 29th.
Thank you and we look forward to receiving your submissions!
Aslihan
Dear madam/Sir
I hope first of all I am congratulate to the (FSN) Coordinator body, I am engaging long time in agriculture's media sector, how I can contribution my role in agriculture sectors. I came from yet still Agriculture family background. How can the hidden costs and benefits of agrifood systems be effectively incorporated into decision-making for transformation ?
I recognize the about the agriculture value how is important for men. I wish in terms of play role in agriculture sector from my side.
Many many thanks FSN Coordinator body' All of world FSN Members.
Giving me opportunity space of consultation Our dignified institution from the United Nations Food and Agriculture Organization (FAO).
With best regards,
Dhanbahadur Magar
Online portal : www.krishijournal.com.np
Veuillez trouver ci-joint mon dossier de candidature sur comment intégrer efficacement les coûts et les avantages cachés du système agroalimentaire dans la prise de décision en vue de la transformation.
Candidat: NZANGUE Faustin Médard
Centrafrique
Tanguy R. C. DJAKA YARISSI
Réalisateur de films documentaires
submitted by Dr Jemina Moeng on behalf of the team.
Input by the Department of Agriculture, Land Reform and Rural Development (DALRRD) Food Security Team
Introduction: Hidden costs are like a vicious cycle as they cost more in the future than in the present, making attempts to achieve sustainable development impossible.
To effectively incorporate the hidden costs and benefits of agrifood systems into decision-making requires:
- Recognition of the strengths and weaknesses in the current food systems, what purpose they serve, who they serve and whether they enable progress towards achieving the national goals.
- The most affected populations by hidden costs of agrifood systems should be identified e.g. the vulnerable, rural and peri urban. The food insecurity and vulnerability assessments should be constantly undertaken. These assessments should further analyse coping mechanisms of people that should be understood for informing agrifood systems decisions and proper targeting of the most affected.
- All role players in agrifood systems including all spheres of government, business, non-government actors, researchers and communities must integrate and streamline policies and legislation and national frameworks based on the agreed upon hidden costs and benefits of agri-food systems.
- The point of departure is recognition of the power of collective action and a need to forge powerful partnerships and creating mutually reinforcing and appropriate interventions.
- Inclusion of Traditional Leaders in cases of rural settings is critical to ensure that the communal areas and communities are consulted upon, noting that indigenous knowledge will enrich the policy process for transformation.
Thank you
CDFS Team
Good morning,
Please find attached the Food Insecurity Observatory's submission for the
How can the hidden costs and benefits of agrifood systems be effectively incorporated into decision-making for transformation?
For any questions or issues, please feel free to contact us ([email protected]).
Davide Marino, Italy, [email protected]
Bianca Minotti, Italy, [email protected]
Thank you
Kind regards,
Prof. Davide Marino
With appreciation to SOFA for its preliminary assessment of Hidden Cost in Agri food system, following points are offered:
- Though the TCA framework in SOFA 2023 is confined to Agri Food system, the aspect of Hidden Cost is ingrained in entire economic system. Hidden cost, connoting “demerit good” produced in other sectors of economy, possibly may not over score the most essential merit good of healthy and active life produced by Agri food system. The Hidden Cost is likely to be cascading and spilling over with expanding urbanization, changing food habits, transportation, trade, food preservation, processing and packaging. Therefore, the exercise of TCA, assessment of Hidden Cost and its spillover may be seen in the context of entire economic system.
- In the above context, the SOFA 2023 exercise coincides with the sustainable development agenda and It will be useful to reflect convergence in endeavors to control hidden cost and quests for SDGs. The aspect of Hidden Cost is related to SDG target 12.2 “ Achieve the sustainable management and efficient use of natural resources” and its indicator 12.2.1 “Material footprint per capita, and per GDP”, with 3600 coverage of eco system in dimensions of bio mass, fossil fuel, metal and non metal ores material footprints. Similarly, SDG target 2.4 for ensuring sustainable food system will be resulting in decline in hidden cost and its 11 elements composite indicator 2.4.1 “Proportion of agricultural area under productive and sustainable agriculture” is similar to the factors of Hidden Cost.
- There are some consistency observations. The Agri food Hidden Cost estimated for 2020 in PPP USD is about 10% of world GDP (in PPP 2020). Agri GVA on the other hand (about 4 Trillion USD nominal) was correspondingly about 4% of world GDP. This may be implying that hidden cost in Agri food system far exceeds the GVA of Agri food system. Secondly, the SOFA analysis reveals that Hidden Cost increased by 13% during 2016 to 2022. In the corresponding period, the real and nominal agri GVA (in USD $) increased by about 17% and 37% respectively. In the similar vein, the trend of global Total Factor Productivity (TFP) index of Agriculture (data source ERS USDA) has gradually increased from 101 in 2016 to 106 in 2021 (base 2015). Thus, the exercise of estimation, trend and control of hidden cost opens opportunity for coherence in policy analysis and decision support.
TMG – Think Tank for Sustainability is a partner in the Horizon Europe project PLAN`EAT on the topic of transitioning to sustainable and healthy dietary patterns in Europe. Under this project, TMG is currently building together with True Price an open-access European Database on the True Cost of Food consumed in the EU. The database includes details on production methods, country of origin, environmental, social, and health impacts, as well as the related costs of raw or minimally processed food consumed in the EU. Once completed, the database will serve as a valuable open-access tool for comparing the TCA of various food items, empowering stakeholders to make well-informed decisions.
Pour les coûts cachés des systèmes agroalimentaires, il faut aussi s'appuyer sur les pratiques qui reposent sur des enjeux de durabilité : réhabiliter l'approche systémique, les systèmes agroécologiques.
Voir mon article pour le congrès européen des économiste agricoles (EAAE 2023) : "Promote agroecological principles" pp. 10-12 - III - 1.
In developing country like Nigeria, a holistic approach should be used because there are several ways to effectively incorporate the hidden costs and benefits of agri-food 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, agri-food 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 agri-food 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 agri-food systems are shared more equitably across all stakeholders mentioned above.
Dr. Muhammad Bello Garba
SSUES, Sokoto - Nigeria
This activity is now closed. Please contact [email protected] for any further information.