The hidden cost of global food: $12 trillion annually

The world's agri-food systems generate huge hidden costs, estimated at $12 trillion per year, according to a report by the Food and Agriculture Organization of the United Nations (FAO). Modern diseases such as stroke, diabetes and cardiovascular disease account for 70% of this total, or more than $8 trillion, exceeding the financial impact of environmental degradation and social inequalities.

• The impact of diet-related diseases

The FAO report (also available at https://www.fao.org), produced in collaboration with 156 countries and published under the title State of Food and Agriculture (SOFA) 2024, highlights the central role of diet in determining health. The highest health costs are associated with 13 dietary risk factors, including a diet low in whole grains, fruits and vegetables, and

excessive consumption of sodium and processed red meat. These risks differ significantly across the six agri-food systems analyzed in the report.

• Unsustainable agriculture and the environmental burden

Beyond health, unsustainable agricultural practices contribute significantly to the hidden costs. FAO estimates that greenhouse gas emissions, nitrogen leaching, land use change and water pollution generate costs of approximately $720 billion, particularly in countries undergoing agricultural diversification.

• Poverty and malnutrition, a social burden

Social costs, which include poverty and malnutrition, are more pronounced in traditional agri-food systems or those affected by protracted crises. These social costs range from 8% to 18% of the countries' national GDP, underscoring the importance of addressing inequalities for sustainable development. FAO Director-General QU Dongyu stressed that the transition to a sustainable agri-food system requires both individual initiatives and political support and strategic investments: "Highlighting hidden costs is essential to guide policies and investments towards more sustainable agriculture." The FAO report draws attention to the urgent need to transform agri-food systems to reduce their economic, social and environmental impacts. A better understanding of hidden costs can help develop more effective policies that support both global health and environmental protection.