Hidden costs of agrifood systems

The State of Food and Agriculture 2024 report by FAO refines the global estimates of hidden agrifood system costs across 156 countries, introducing a typology of six agrifood system types rather than geographic classifications. Building on the 2023 report, this update incorporates data from 2020 and 2021, including greenhouse gas and nitrogen emissions, poverty indicators, and land-use change. By focusing on updated FAO and UN sources, the 2024 report provides a more unified basis for assessing costs.
Despite methodological updates, the economic risks from agrifood systems remain consistent with the 2023 findings. Low-income countries bear the highest relative costs – over 30 percent of their GDP – while costs decrease with income. The report cautions that rising hidden costs from agrifood systems will impede economic growth unless addressed, as agrifood system impacts, such as nitrogen pollution and productivity losses from unhealthy diets, challenge global sustainability. Policymakers are encouraged to address these risks with tailored policies to protect growth, underscoring that reducing agrifood sector impacts differs fundamentally from the decarbonization pathway demanded of other sectors.