Global Forum on Food Security and Nutrition (FSN Forum)

Call for submissions

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.

This activity is now closed. Please contact [email protected] for any further information.

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I am attaching the template with the pro forma information added and the spreadsheet pertaining to the submission files a few moments ago. Ironically, spreadsheets are not acceptable forms of documents for uploads to the FAO consultation website, so I have converted it to a PDF.

Dear SOFA Team

Global Dairy Platform is pleased to submit comments regarding the recent report on True Cost Accounting. 

Thank you very much for the opportunity to provide feedback on this well done report.

The Global Dairy Platform (GDP) is pleased to have the opportunity to comment on the concept of True Cost Accounting, and its potential to serve as a catalyst to more sustainable global food systems in the future. As we seek ways to generate healthier,  more just, and environmentally sustainable means of producing and consuming foods, we believe that True Cost Accounting can serve as an important metric for assessing the hidden costs, both positive and negative, associated with food and diet production and consumption practices.

A key issue, from our perspective, lies in the definition of the terms “better”, “healthier”, and “sustainable”, and the means we will use for defining these terms. This is more than a semantical consideration; defining foods as healthy or unhealthy, or a production system as sustainable, and assigning costs to these factors based on pre-determined  definitions is a key point that can potentially elevate or undercut the concept of True Cost Accounting, and its utility.

Diet, health, and the environmental implications of food production is a Rubik’s Cube of possibilities. A food that is deemed unhealthy in one context (i.e., a higher animal sourced food diet in an overweight, over-fed population) may be healthy or possibly lifesaving in another (a malnourished, protein-deprived population). We run the risk of “throwing the baby out with the bath water” when we label foods as heathy or unhealthy in a reductionist manner, not considering the context in which these foods are consumed. Similarly, can we deem production of animal sourced foods to be unsustainable in locales in which land used by grazing animals is largely non-arable or unsuitable for growing crops? And how will we balance tradeoffs of growing food that may have a bit higher environmental cost in a region where that food has great cultural significance, or is a significant source of income for a large swath of the population? Attaching costs to foods or diets in a system that is not always black and white has its pitfalls, which need to be well thought out.

Further, nutrition science is ever changing, and foods deemed unhealthy based on current science may be considered healthy as new science emerges, or existing data are re-evaluated. Much of our uncertainty about what constitutes healthy from unhealthy eating is related to the fact that conducting quality nutrition research is difficult. Controlling all the aspects of a person’s life necessary to truly isolate and ascertain the effects of specific foods and diets is almost impossible, often forcing nutrition researchers to rely on short term, not-well-controlled studies or observational data never meant to assess cause and effect relationships.

For several years a  high carbohydrate, low saturated fat and cholesterol diet was considered best (particularly in a Western diet context) for mitigating non communicable disease risk. Newer data, however, indicates that eating high carbohydrate diets with impunity carries health risks of their own, and consuming particular fat sources against a backdrop of a high carbohydrate diet can carry risks that don’t exist when those fats are eaten as part of a lower carbohydrate diet.

In a similar vein, research on the environmental impacts of particular foods or diets is in its relative infancy, and much of our perceive knowledge of what connotes a high or low GHG producing diet is derived from models and estimates that are highly imperfect.

All of this begs the question of how we will or can accurately assign true costs to particular foods or diets without acknowledging the margin of error inherent in doing so. In this regard, True Cost Accounting may be more well suited as a conceptual framework  on how we should produce and consume foods, rather than as a final arbiter of “good” and “bad.”  

Other issues we believe require addressing as the concept evolves are 1) the lack of information on cultural aspects of sustainable food systems (how do we deal with foods deemed less than optimal from a True Cost Perspective, but that have been cultural staples for millennia)? 2)  will the True Cost concept unfairly impact poor people who won’t be able to afford particular foods once a true “cost” is added to that item? 3) who will be the arbiters of what ultimately constitutes the true cost of a food item or diet, particularly when decisions may need to be made based on partial or imperfect science? 4) how nimble will a True Cost Accounting system be to adapt and change as our scientific understanding of the variables change?

None of the issues we’ve raised here should suggest that GDP is not supportive of the concept of True Cost Accounting, or what it endeavors to achieve. We are, however, grateful that the concept will undergo a multiphase  assessment process, first raising awareness of the idea before moving towards evaluations to prioritize solutions and guide actions. We believe the concept requires a great deal more deliberation and “pressure testing” before it can be fully enacted. GDP is interested in participating in discussions as the idea moves forward, and to assist in its development in any way possible.

Sincerely,

Mitch Kanter, PhD

Global Dairy Platform

Mr. LUBEGA JONATHAN

Sothern and Eastern Africa Trade Information and Negotiations Institute (SEATINI)
Uganda

Dear SOFA team, 

Please see my submission below.

Use of dangerous agrochemicals: The increased use of dangerous agrochemicals in Uganda presents adverse effects on environmental safety and human health. Uganda is required to update and register agricultural chemicals as mandated under the legal framework- Section 4 of Agricultural Chemicals (Control) Act, 2007 and as according to the updated register (As of October, 2021), agrochemicals containing mancozeb as an active ingredient are listed and still traded to date.

The increased use of and trade in highly hazardous agro-chemicals is partly attributed to the absence of the Regulations to facilitate enforcement of the legal framework, porous borders that open up to the sell and trade of dangerous agrochemicals. Worse still, small scale farmers lack knowledge on the application, dangers of agrochemicals for instance, a study in Uganda showed that 24.5% of farmers were not aware of any health risks of spraying tomatoes close to harvest time, almost 50% of farmers (45.8%) sprayed their tomatoes less than a week to harvest time, 29.2% sprayed their tomatoes on harvesting, with intentions to extend the shelf-life while 50% did so to attract consumers.[1] Another study conducted in 2015 shows how farmers sprayed tomatoes 6 times beyond the manufacturer’s recommended dosage and harvested these tomatoes 2–3 days after the last spraying session compared to the recommended pre-harvest interval of 4–7 days.[2]

The continuous use of agrochemicals in the agrifood system by small holder farmers undermines the achievement of Sustainable Development Goals especially, eradicating extreme poverty for all people everywhere. This is because most of the would be profit is spent in procuring and applying agrochemicals.

With this in consideration, the SOFA report should demystify the double standards in the export and trade in and use of dangerous agrochemicals in developing and low income countries. In December 2020, the E.U parliament classified mancozeb as toxic for reproductive category 1B and also it concluded that non-dietary exposure to mancozeb cannot be considered negligible. Subsequently, the approval of active substance mancozeb was not renewed under Article 1.

It is our considered submission that whereas the use of agro-inputs in the food system is important for food productivity, the negative impacts outweigh the positives with reference to the hidden cost. Agrochemicals are leading to illnesses among farmers, cause climate crisis, unsafe food among other costs. The report should demystify the dangers of agrochemical use and suggest the sustainable agriculture practices like agroecology for small scale farmers. It should reflect the urgent call for the implementing and developing legal frameworks to promote sustainable agrifood systems.  

Land: There is a lot of speculation on sustainable land use in Uganda. A large percentage of land in Uganda is privately owned and hence many small scale farmers have limited access to land. This has created a growing trend of land fragmentation and accessing land for rent. This has created an environment of human rights violations over land matters, low productivity. Renting costs are not considered in determining the true cost of food. On the same note, despite Uganda having a well streamlined legal framework on land matters, many people especially the vulnerable/rural small scale farmers still face violations in form of destruction of food, and illegal evictions by large investors for plantations hence leaving many landless and/or with small portions of land for agriculture.

To comprehensively protect farmers and their interests in land, decision makers should monitor and implement land laws and curb any sort of violations over land. Decision makers should also develop policies to promote issuance of premium prices/incentivize small scale agrifood producers.

 

[1] Atuhaire A., Tackling pesticide exposure in sub-Saharan Africa: a story from Uganda. Outlooks on Pest Management, 2017. 28(2): p. 61–64.

[2] Kaye E., et al., Mancozeb residue on tomatoes in Central Uganda. Journal of Health Pollution, 2015. 5(8): p. 1–6. 

Dr. Stephen Thornhill

Department of Food Business & International Development, University College Cork, Ireland
Ireland

Congratulations to the SOFA team on this excellent report

This is a much-needed report to help kick-start and speed up the process of food system transformation.

The assessment of externalities throughout our food system is a vital exercise in helping to identify priority implementation measures to effect the necessary changes. It will also be a valuable resource to add to the teaching of externalities in our food economics classes.

Please find attached a report providing some brief feedback on the report and answers to some of the questions listed on the template form,

best regards

Dr Stephen Thornhill, University College Cork, Ireland.

Ceci implique une analyse approfondie des impacts sociaux, environnementaux et économiques. Cela peut se faire en adoptant des pratique durable en évaluant des empruntes écologiques en favorisant la transparence dans la chaine d’approvisionnement et en encourageant l’innovation technologique respectueuse de l’environnement.

L’intégration des couts peut se faire à plusieurs niveaux de la chaine alimentaire incluant la production agricole, la transformation, la distribution et la transformation alimentaire.

 

Cordialement,

Dear SOFA team,

We are glad to submit the official contribution of the Ministry of Agriculture and Livestock of Brazil, below.

In addition, please find attached a publication that describes the ABC Plan, a policy of Brazil regarding low carbon agriculture. Please, feel free to contact us for further inquires.

Best regards.

 

Although the costs of agrifood systems are constantly (and asymmetrically) emphazided during most of the discussions regarding the sustainability of the process, we do believe it is absolutely crucial to call attention to the distinguished benefits of such complex and essential human activity. For instance, agrifood systems are the main providers of calories and nutrients for human beings’ requirements, generate jobs worldwide and can participate as an important, strategic mechanism to balance Greenhouse Gas (GHG) emissions.

Notwithstanding the fact that the present call announces that it seeks to "discover the true impacts, both positive and negative, of global agrifood systems", their beneficial aspects have not been explored accordingly. As a matter of fact, only unfavorable effects of the activity were portrayed by FAO’s flagship publication “The State of Food and Agriculture 2023” (SOFA 2023) (https://www.fao.org/documents/card/en/c/cc7724en) and even the Call for Submissions (https://assets.fsnforum.fao.org/public/resources/2023-12/EN_TOPIC_SOFA2…). It is important to mention that although the SOFA 2023 edition does state in the introductory note that “Agrifood systems generate significant benefits to society, including the food that nourishes us and jobs and livelihoods for over a billion people”, the entire SOFA document is massively and exclusively focused on negative impacts of agrifood systems.

It is very much in this sense that we have critical concerns regarding the TCS (True Cost Accounting) approach methodology as the backbone of SOFA 2023. Leaving benefits aside (or even if only to be partially considered in second rounds or phases of the exercise) does not guarantee, at all, that transformative actions on agri-food systems can be adequately assessed or evaluated after consideration of hidden costs through TCA.

Moreover, as we could gather from the TCA definitions and meanings of hidden costs and hidden benefits as well as in the Executive Summary of SOFA 2023 (on pages xviii, xx, xxiii, for instance, and also, in other parts of the full SOFA document), these seem far from what would be considered as valid, more strictly correct, or really useful according to the classical literature of Cost-Benefit Analysis - CBA. In the literature of CBA (cf. Dasgupta et al., UNIDO Guidelines for Project Evaluation, for instance), all costs and benefits (visible, invisible, hidden, true, etc) of projects, activities, or programmes, must be considered properly in a sound analysis.

In sound CBA’s, costs are “sacrificed/foregone benefits”. As such, benefits (among which the hidden benefits of the SOFA TCA approach) must be appropriately valued, and cannot be just, or merely, reduced to a “negative” “reflection” of costs (negative hidden costs) as in the proposed TCA approach. Therefore, some of the affirmatives on the usefulness of TCA, such as, for instance, the one contained on page xxiii of the Executive Summary are very questionable – “… A comprehensive assessment of costs and benefits with TCA can also help businesses mobilize financial resources for the transition to sustainability ….”. The exact meaning of the statement remains to be clarified: (i) a comprehensive assessment of costs and benefits with TCA, meaning comprehensively assessing costs and benefits as per the definitions, meanings and methods of TCA? Or (ii) a comprehensive assessment of costs and benefits as contained, for example, in a sound CBA, but also using TCA? If (ii) is the chosen meaning, then a sound CBA seems more recommendable, and may suffice.

Despite these precautious remarks and considering that a second phase for SOFA may be forthcoming with more in-depth assessments targeting specific components or sectors of agri-food systems, we believe that Brazilian agriculture research institutions and other stakeholders would be willing to participate and contribute in this future process.

Having said that, through the document attached, we present a thriving, robust, and ambitious public policy, named ABC (Low-Carbon Agriculture) Plan, applied in Brazil and focused on sustainability and food security to harmonize sustainable development with mitigation and adaptation strategies against climate change throughout the rural production sector. This initiative, which also considers economic, environmental and social aspects, should work as an illustrative, distinctive example of (hidden) benefits of agrifood systems. Indeed, its focus makes the ABC Plan a global benchmark, unique in its scope, breadth and reach.

To explore existing case studies of agrifood systems benefits, the reading of the whole document entitled “ABC Plan: Ten years of success and a new sustainable form of agricultural production” is highly recommended. Both Chapters 3 (“Expanding results in the adoption of ABC technologies and GHG mitigation foreseen in the ABC Plan”) and 5 (“The ABC program as a finance instrument for climate-sustainable agriculture”) summarize and clarify some distinguished cases.

We believe that the ABC Plan is a very good example of transformative actions towards sustainable agrifood systems applied by Brazil and illustrates, quite remarkably, how decision-makers and other stakeholders are implementing the strategy and impacting the benefits of such systems. Hopefully, this initiative will inspire decision-makers elsewhere to adopt similar programmes to foster sustainable agrifood systems worldwide, to guarantee food security and nutrition for a growing global population, providing livelihoods to those along the food supply chain in an environmentally sustainable way (OECD, 2023). Furthermore, irrigation practices, considered within the ABC+ Plan, are also widely discussed as a key strategy for adapting agriculture to climate change to guarantee production as they contribute to avoid crop failures due to water stress caused by extreme weather events. Regarding mitigation, irrigated systems are effective in controlling GHG emissions, as they alter soil microbial activity and substrate supply, as long as the water use in irrigation is optimized, according to a broad review by Sapkota et al. (2020). In addition, studies on organic carbon levels in Brazilian sandy soils show that they can be reestablished to levels observed in native vegetation, after a long period under irrigation, and accumulate an expressive quantity of C per ha per year as compared to rainfed areas (Campos et al., 2020; Dionizio et al., 2020). Maintaining soil moisture increases carbon stock in the soil, as soils rich in organic matter retain more nutrients, increasing yield, while promoting carbon sequestration and storage. Finally, irrigation enables the use of “fertirrigation”, which allows the use of animal waste.

Moreover, agricultural subsidies should be considered as an important aspect of hidden costs as, according to OECD, “Producer Support Estimate” (PSE), the annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, in 2020-22, was USD 234 billion (EUR 208 billion), per year on average, in OECD countries (Agricultural Policy Monitoring and Evaluation 2023).

References

Dasgupta, P., Marglin, S., Sen, A.K. Guidelines for Project Evaluation (New York: UNIDO, 1972).

OECD (2023), Agricultural Policy Monitoring and Evaluation 2023: Adapting Agriculture to Climate Change, OECD Publishing, Paris, https://doi.org/10.1787/b14de474-en.

Saptkota, A, Haghverdi, A, Avila, CCE, and Ying, SC. Irrigation and greenhouse gas emissions: a review of field-based studies. Soil Syst. V.4, n.20, Apr. 2020. DOI:10.3390/soilsystems4020020

Campos, R, Pires, GF, and Costa, MH. Soil carbon sequestration in rainfed and irrigated production systems in a new Brazilian agricultural frontier. Agriculture, v. 10, n. 156, May 2020. DOI:10.3390/agriculture10050156

Dionizio, EA, Pimenta, FM, Lima, LB, Costa, MH. Carbon stocks and dynamics of different land uses on the Cerrado agricultural frontier. PLoS ONE v. 15, n. 11, Nov. 2020. DOI: https://doi.org/10.1371/journal.pone.0241637.