The true cost of food: what are the negative impacts of prevailing diets, and how can they be mitigated?

Editorial

The current global food system is failing to ensure that every individual has the fundamental right to adequate and nutritious food, as advocated by Article 25 of the Universal Declaration of Human Rights (United Nations, 1948). Scientific literature shows that predominant diets are gradually replacing traditional food practices, generating significant negative social, environmental and health externalities (Klaus et al., 2024). These deleterious effects manifest themselves throughout the food chain, generating costs for society. For the most part, these costs are not reflected in the price of food. These real costs are referred to as the “hidden costs of food” in several studies carried out in different countries and on a global scale (Hendriks et al., 2023).

In 2023, the FAO’s “The State of Food and Agriculture” report provided an estimate of these costs.

The hidden costs of the world’s food systems amounted to 12,700 billion US dollars in 2020, representing almost 10% of global GDP.
FAO, 2023

Furthermore, studies agree on the importance of health costs (Rastoin, 2023). Indeed, current dietary practices are contributing to an increase in the prevalence of obesity and non-communicable diseases such as cardiovascular pathologies, diabetes and certain types of cancer. These effects lead to exponential healthcare expenditure, turning these diets into a major factor in the deterioration of public health and a growing burden on public finances.

Developing prevention through diet is a potential strategy for mitigating these “hidden health costs”. It has now been shown that adopting healthier dietary habits, in particular increasing fruit and vegetables consumption, plays a crucial role in reducing the risk of certain cancers, cardiovascular disease and type 2 diabetes (Aune et al., 2017; Grosso et al., 2017; Wang et al., 2016).

This month, the Global Newsletter on Fruit and Vegetables examines the health issues associated with current food systems and related dietary habits from an economic perspective.

The first article (Braun and Hendriks, 2023) presents an assessment of the “hidden costs” associated with current food systems. The authors suggest adopting True Cost Accounting (TCA) to correct the market failures generated by these externalities. The challenges and complexities associated with its implementation are highlighted.

The second article (Colaprico et al., 2024) explores the health and economic implications of improved dietary habits, using the Mediterranean diet as an example. The study also highlights the challenges associated with accessibility to the Mediterranean diet, particularly for the most disadvantaged populations. This article suggests public policies to facilitate its wider adoption.

The third article (Liu et al., 2023) focuses on the effectiveness and equity of economic policies aimed at changing dietary behavior in Canada. This work analyzes the impact of taxes on sugary products (beverages and food) and subsidies on fruit and vegetables, in terms of public health, health costs and socio-economic inequalities.

Together, these articles offer an analysis of the social-economic impacts of diets and the public policies aimed at mitigating them. They highlight the hidden costs of the current food system, as well as the multiple benefits of healthier diets. Finally, these studies assesses the effectiveness of economic and social policies designed to reduce these costs and promote sustainable dietary behavior.

Jean-Louis Rastoin
Institut Agro, Montpellier
About the author

Jean-Louis Rastoin, an agricultural engineer with a doctorate in economics and a degree in management science, is honorary professor of economics and business management at the Institut Agro Montpellier and a research associate at UMR MoiSA.
Founder, director and scientific advisor of the UNESCO Chair in “Alimentations du monde” and of the academic journal “Systèmes alimentaires/Food Systems”. He is a member of the French Academy of Agriculture. His teaching and research focus on the economics, management and governance of food systems, foresight and the strategies of their stakeholders and territories.

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