Hidden costs of agrifood systems and recent trends from 2016 to 2023


Book Description

This background paper to The State of Food and Agriculture 2023 examines the annual hidden costs of agrifood systems across 2016–2023 for 154 countries. Hidden costs include environmental hidden costs from greenhouse gas emissions, nitrogen emissions, land-use transitions, and blue water withdrawals; social hidden costs associated with undernourishment and poverty; and health hidden costs from unhealthy dietary patterns. The expected value of hidden costs is around 13 trillion 2020 purchasing power parity (PPP) dollars. This is equivalent to approximately 10 percent of global gross domestic product (GDP) PPP in 2023 and around 35 billion 2020 PPP dollars per day. Environmental hidden costs averaged around 3 trillion 2020 PPP dollars over the 2016–2023 period; health-related costs averaged 9.3 trillion 2020 PPP dollars; and social hidden costs averaged 560 billion 2020 PPP dollars. Health hidden costs are the largest across all world regions, apart from sub-Saharan Africa, where costs from poverty and undernourishment prevail. Hidden costs also report an upward trend from 2016 to 2023, driven primarily by health hidden costs.Overall, hidden costs place a disproportionate burden on low-income countries.Left unchecked, these hidden costs will depress future growth and development. However, these hidden costs do not reflect the GDP PPP loss that may be avoided by transitioning to more sustainable agrifood systems. In other words, while these may be avoidable, the quantified hidden costs do not indicate the costs of transitioning to alternative systems. Subsequent studies are needed to quantify these.




The State of Food and Agriculture 2023


Book Description

Agrifood systems generate significant benefits to society, including the food that nourishes us and jobs and livelihoods for over a billion people. However, their negative impacts due to unsustainable business-as-usual activities and practices are contributing to climate change, natural resource degradation and the unaffordability of healthy diets. Addressing these negative impacts is challenging, because people, businesses, governments and other stakeholders lack a complete picture of how their activities affect economic, social and environmental sustainability when they make decisions on a day-to-day basis. The State of Food and Agriculture 2023 looks into the true cost of food for sustainable agrifood systems. The report introduces the concept of hidden environmental, health and social costs and benefits of agrifood systems and proposes an approach – true cost accounting (TCA) – to assess them. To operationalize the TCA approach, the report proposes a two-phase assessment process, first relying on national-level TCA assessments to raise awareness and then moving towards in-depth and targeted evaluations to prioritize solutions and guide transformative actions. It provides a first attempt at national-level assessments for 154 countries, suggesting that global hidden costs from agrifood systems amount to at least to 10 trillion 2020 PPP dollars. The estimates indicate that low-income countries bear the highest burden of the hidden costs of agrifood systems relative to national income. Despite the preliminary nature of these estimates, the analysis reveals the urgent need to factor hidden costs into decision-making for the transformation of agrifood systems. Innovations in research and data, alongside investments in data collection and capacity building, are needed to scale the application of TCA, especially in low- and middle-income countries, so that it can become a viable tool to inform decision- and policymaking in a transparent and consistent way.





Book Description




Accounting for the hidden costs of agrifood systems in data-scarce contexts


Book Description

This background paper to The State of Food and Agriculture 2023 reviews the methods used, as well as the data required, to estimate the hidden environmental, social and health costs associated with agrifood systems. The studies analysed are based on the true cost accounting approach, which can facilitate improved decision-making by policymakers, businesses, farmers, investors and consumers. The reviewed studies demonstrate that hidden costs of agrifood systems are considerable, and that action is needed at global, national and local levels. To apply true cost accounting at the country level, the methods developed must be downscaled and the data limitations overcome. This review goes through each cost category – environmental, social and health – and proposes approaches to deal with them, with a focus on country-level estimates and analysis, especially in data-scarce countries. Where data are not available or time is limited, methods combining secondary data are suggested. In some cases, the suggestion is to collaborate with research centres.The paper further argues that, when addressing hidden costs in agrifood systems, trade-offs may arise, which may require the use of more complex tools, such as partial and general equilibrium models, to analyse their impacts on different areas. In general, the extent of the compromise will be minimized if there are at least as many policy instruments as there are objectives. For example, if a country seeks to restore fish stocks and address rural poverty, restricting catch alone could increase poverty in the artisanal fishing community. Adding income support, however, could allow both objectives to be met.




True cost accounting applications for agrifood systems policymakers


Book Description

This background paper to The State of Food and Agriculture 2023 introduces true cost accounting (TCA) as an approach to measure and value the costs and benefits generated by agrifood systems in order to facilitate improved decision-making. The paper is based on a systematic review of existing TCA approaches and of relevant case studies in agrifood systems. Guidance on conducting TCA is provided, especially in relation to data collection. The paper ends with a discussion on scaling and harmonizing TCA for agrifood systems transformation. Based on a systematic literature review, the paper describes seven TCA approaches and identifies nine case studies deemed most relevant to policymakers in agrifood systems. It then proceeds to describe the different stages and steps needed to undergo a TCA study, such as: setting the boundaries of their assessment; determining the materiality of indicators; and estimating data points that are not readily available. The latter is particularly important given that a lack of (robust) data at low cost is potentially the main barrier to applying and scaling up TCA, especially in middle- and low-income countries.Because a TCA study requires a substantial amount of data to be collected, it is important to start with the data that are available and use this to determine which data points are crucial to answering a given policy question, to then focus on refining the available data points and filling in missing data points that are essential to the analysis. Another important bottleneck to scaling up TCA is the issue of harmonization, which the paper argues is impeded by the number of approaches available. As future steps for scaling up TCA, harmonization by integrating methodologies and adopting shared principles, ideas and requirements, is thus recommended.




OECD-FAO Agricultural Outlook 2021–2030


Book Description

The Agricultural Outlook 2021-2030 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations. It brings together the commodity, policy and country expertise of both organisations as well as input from collaborating member countries to provide an annual assessment of the prospects for the coming decade of national, regional and global agricultural commodity markets. The publication consists of 11 Chapters; Chapter 1 covers agricultural and food markets; Chapter 2 provides regional outlooks and the remaining chapters are dedicated to individual commodities.




The State of Food Security and Nutrition in the World 2020


Book Description

Updates for many countries have made it possible to estimate hunger in the world with greater accuracy this year. In particular, newly accessible data enabled the revision of the entire series of undernourishment estimates for China back to 2000, resulting in a substantial downward shift of the series of the number of undernourished in the world. Nevertheless, the revision confirms the trend reported in past editions: the number of people affected by hunger globally has been slowly on the rise since 2014. The report also shows that the burden of malnutrition in all its forms continues to be a challenge. There has been some progress for child stunting, low birthweight and exclusive breastfeeding, but at a pace that is still too slow. Childhood overweight is not improving and adult obesity is on the rise in all regions. The report complements the usual assessment of food security and nutrition with projections of what the world may look like in 2030, if trends of the last decade continue. Projections show that the world is not on track to achieve Zero Hunger by 2030 and, despite some progress, most indicators are also not on track to meet global nutrition targets. The food security and nutritional status of the most vulnerable population groups is likely to deteriorate further due to the health and socio economic impacts of the COVID-19 pandemic. The report puts a spotlight on diet quality as a critical link between food security and nutrition. Meeting SDG 2 targets will only be possible if people have enough food to eat and if what they are eating is nutritious and affordable. The report also introduces new analysis of the cost and affordability of healthy diets around the world, by region and in different development contexts. It presents valuations of the health and climate-change costs associated with current food consumption patterns, as well as the potential cost savings if food consumption patterns were to shift towards healthy diets that include sustainability considerations. The report then concludes with a discussion of the policies and strategies to transform food systems to ensure affordable healthy diets, as part of the required efforts to end both hunger and all forms of malnutrition.




Agriculture & Food Systems To 2050: Global Trends, Challenges And Opportunities


Book Description

This book features a comprehensive foresight assessment, exploring the pressures — threats as well as opportunities — on the global agriculture & food systems between now and 2050. The overarching aim is to help readers understand the context, by analyzing global trends and anticipating change for better planning and constructing pathways from the present to the future by focusing on the right questions and problems. The book contextualizes the role of international agricultural research in addressing the complex challenges posed by UN 2030 Agenda and beyond, and identifies the decisions that scientific leaders, donors and policy makers need to take today, and in the years ahead, to ensure that a global population rising to nine billion or more combined with rising incomes and changing diets can be fed sustainably and equitably, in the face of the growing climate threats.




Integrated Organic Farming Systems: Approach for Efficient Food Production and Environmental Sustainability


Book Description

Researchers and policy planners are in search of a solution to address the twin challenges of maximizing agricultural production while maintaining/ improving ecosystem sustainability. Enhancing farm productivity is needed in certain regions of the world to satisfy local food consumption and farmers' needs. Linear economy-based-input intensive conventional agriculture (CAPS) has increased production output but has not made agriculture more sustainable. Henceforth, a farming system that aims to reduce the adverse impact on the environment, as well as enhance agricultural productivity by reducing environmental footprint and improving soil health and economic wellbeing is needed in the present day. Integrated organic farming systems (IOFS) involve residue recycling, bio-intensive cropping, high-tech horticulture, mushroom, dairy, poultry, fishery, apiary, etc can improve the ecosystem health and augment the income and livelihood security of the growers. Worldwide, IOFS are gaining popularity due to improved ecosystem services and improving farm productivity and livelihood security. Hence, IOFS- a circular economy-based (reuse-recycle-repair) agricultural production system can be alternatives to energy-intensive inputs based on CAPS. Hence, there is an urgent need to select suitable IOFS models with proper resource optimization for productivity maximization and better ecosystem sustainability. Undoubtedly IOFS reduces energy use from synthetic agrochemicals but food production in IOFS is highly dependent on fossil fuel energy that must be addressed urgently. Despite the enormous positive outlooks, there are several challenges in the adoption of IOFS models. The IOFS is a multiproduct-oriented production system that needs multi specialties and marketing. Capacity building and infrastructure development are also great challenges in adopting IOFS. Moreover, the development of IOFS models is highly individualistic, and location-specific production systems need proper resource optimization and characterization. Hence, the development of site-specific IOFS models to maintain food quality with productivity improvement is a genuine issue to the researchers, which needs to be addressed. Papers (original research/review/letter to the editors) spanning across the discipline related to the IOFS development in sustainable ways are encouraged for inclusion in this research topic. Papers should explicitly cover ecosystem restoration, farm productivity, and profitability and could have a specific focus on the following areas: -the IOFS models for enhancing productivity and environmental quality through an integrated management approach aiming at the maximization of use efficiencies -the management of biomass waste to restore the soil fertility, and ecosystem services the effect of integrated management practices on greenhouse gas emissions and energy use -Critical approaches for climate-smart food production systems




The State of the World's Biodiversity for Food and Agriculture


Book Description

The State of the World's Biodiversity for Food and Agriculture presents the first global assessment of biodiversity for food and agriculture worldwide. Biodiversity for food and agriculture is the diversity of plants, animals and micro-organisms at genetic, species and ecosystem levels, present in and around crop, livestock, forest and aquatic production systems. It is essential to the structure, functions and processes of these systems, to livelihoods and food security, and to the supply of a wide range of ecosystem services. It has been managed or influenced by farmers, livestock keepers, forest dwellers, fish farmers and fisherfolk for hundreds of generations. Prepared through a participatory, country-driven process, the report draws on information from 91 country reports to provide a description of the roles and importance of biodiversity for food and agriculture, the drivers of change affecting it and its current status and trends. It describes the state of efforts to promote the sustainable use and conservation of biodiversity for food and agriculture, including through the development of supporting policies, legal frameworks, institutions and capacities. It concludes with a discussion of needs and challenges in the future management of biodiversity for food and agriculture. The report complements other global assessments prepared under the auspices of the Commission on Genetic Resources for Food and Agriculture, which have focused on the state of genetic resources within particular sectors of food and agriculture.