We are so accustomed to food being cheap, at least in developed countries, that we hardly ever think how that is possible. I see whole chicken priced at ~3.5€/kg at retailers in Spain. To put that in perspective, that's about two "cafe con leche" at a standard cafeteria here. That price includes everything from raising the chicken, feed costs, processing costs, logistics costs, retail costs and margins at every stage. No wonder that in the EU, majority of the farmers do not make living income without the CAP subsidies.
Truth is, if we apply true cost accounting for food, the global cost of the agrifood system in 2020 was up to US$12.7 trillion more than consumers paid at retail. That’s equivalent to about 10% of global gross domestic product, or $5 per person per day worldwide.
1. #Environmental Costs - Industrialised farming to achieve scale and reduce unit economics with massive #monocultures and #CAFOs has led to #deforestation, nitrogen runoff, #ammonia emissions, water pollution, algal blooms and dead aquatic zones, #methane emissions from food waste #landfills an combined represent about 20% of the global hidden costs of food production. Other environmental costs, such as those associated with biodiversity and pesticide exposure were not even included in the SOFA analysis.
2. #Health Costs - For wealthy countries, 84% of hidden costs derive from unhealthy dietary patterns, such as eating large quantities of red #meat and heavily #processed #foods. Due to the connection between soil and gut #microbiome and impact on various physical and mental health issues, this cost might be even higher. Not to mention the exposure of farmers to harmful #pesticides and chemicals leading to various cancers, Parkinson's disease, etc. Our food is making us sick!
3. Social Costs - 50% of the hidden costs of food in low-income countries are social costs that stem from poverty and undernourishment. Incomes of poor people who produce food in low-income countries would need to increase by 57% for these workers to obtain sufficient revenue and calories for productive lives. Even in rich countries, farming relies on undocumented and low-paid workers.
So, should food cost more? Not necessarily. And I agree with the author of the article that the most effective way to address the hidden costs of food would be to change government policies that provide $540 billion in agricultural subsidies worldwide every year. Of this amount, 87% goes to support production systems that produce cheap food, fiber and biofuels but also generate social and environmental harms. Examples include subsides that promote chemical fertilizer and pesticide use, overuse of natural resources and cultivation of emission-intensive commodities.
Instead, the subsidies should be linked to outcomes of better quality of food, soil health, biodiversity, etc
#Regenerativeagriculture can help do that and we need the transition right now.
Vice President, Project Management at Trusted Media Brands, Inc.
6moForget the size the color is amazing!!!