True cost accounting. Could this provide a catalyst for the transformation of the global food system?
Peter J. BattAbstract
True cost accounting (TCA) provides a holistic and systemic approach to evaluating the hidden costs of our prevailing food system on the environment, health and society. Globally, Food and Agriculture Organisation (FAO) estimates that these hidden costs currently approach some USD 12.7 trillion per annum, with FAO and the Food Systems Economics Commission (FSEC) estimating the cost of rectifying the damage to be between USD 200 and 500 billion per annum to 2050. Fortuitously, there is an increasing international recognition of the need to transform agrifood systems towards greater efficiency, resilience, inclusiveness and sustainability as a necessary condition for realizing the 2030 Agenda for Sustainable Development. TCA can contribute to this process by assisting governments, businesses and other stakeholders in making more informed decisions to improve sustainability.
Significance of the study
What is already known on this subject?
Evaluating the performance of food systems purely on the basis of productivity per unit area ignores significant environmental, biodiversity, health, and social costs. True Cost Accounting (TCA) is increasingly recognized as a framework for capturing these hidden impacts.
What are the new findings?
This article highlights the scale of hidden agrifood system costs and discusses how TCA can support more informed decision-making and accelerate the transition to sustainable agrifood systems.
What are the expected impacts on horticulture?
Horticulture is well placed to benefit from the transition to more healthy diets and TCA can help demonstrate the broader value of horticultural products.