Agrifood systems play a crucial role in society, providing food security and employment for over a billion people worldwide. However, unsustainable practices in these systems contribute significantly to climate change, natural resource depletion, and the unaffordability of nutritious diets. Decision-makers often lack comprehensive insights into the economic, social, and environmental impacts of agrifood activities. The State of Food and Agriculture 2023 examines the concept of hidden costs and benefits associated with agrifood systems. It introduces true cost accounting (TCA) as an approach to assess these hidden impacts.
Key Messages
- The report proposes a two-phase TCA assessment process: initial national-level assessments to raise awareness, followed by detailed evaluations to prioritize solutions and drive transformative actions.
- Preliminary assessments across 154 countries suggest global hidden costs from agrifood systems exceed 10 trillion 2020 PPP dollars.
- Low-income countries are disproportionately affected by these hidden costs relative to their national incomes.
- There is an urgent need to integrate these hidden costs into decision-making processes to facilitate the transformation of agrifood systems.
- Scaling the application of TCA requires innovations in research, data, and capacity building, particularly in low- and middle-income countries.
- This effort aims to enable transparent and consistent decision- and policymaking in agrifood sectors worldwide.
