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November 10, 2024 – In a newly released report, the Food and Agriculture Organization (FAO) of the United Nations warns that hidden costs of global agrifood systems, totaling approximately $12 trillion annually, are heavily impacting health and the environment. Of these hidden costs, $8.1 trillion—or about 70 percent—stem from unhealthy diets linked to non-communicable diseases (NCDs) such as heart disease, stroke, and diabetes.
The FAO report, which covers data from 156 countries, reveals the substantial financial burden of dietary-related health issues. It emphasizes that health-related hidden costs from the global agrifood system far surpass costs associated with environmental damage and social inequality. These hidden costs include medical expenses, lost productivity, and the human toll of NCDs, which are closely connected to modern dietary patterns.
“The choices we make now, the priorities we set, and the solutions we implement will determine our shared future. Real change begins with individual actions and initiatives, supported by enabling policies and targeted investments,” said FAO Director-General QU Dongyu. “The transformation of global agrifood systems is fundamental to achieving the Sustainable Development Goals (SDGs) and securing a prosperous future for all.”
The report underscores that diet-related health costs are partly due to insufficient intake of whole grains, fruits, and vegetables and an overconsumption of sodium, red meat, and processed foods. These dietary risk factors contribute significantly to NCDs, a growing global public health challenge.
Environmental and Social Costs on the Rise
Beyond health, global agrifood systems impose substantial environmental costs, including greenhouse gas emissions, nitrogen runoff, land-use changes, and water pollution due to unsustainable agricultural practices. Social costs associated with poverty and food insecurity, which impact 8-18 percent of GDP in some nations, also present major challenges. These issues are most pronounced in traditional agrifood systems, highlighting the urgent need for integrated approaches to humanitarian aid, development, and peacebuilding.
A Call for Value-Driven Transformation
In its conclusions, the FAO report calls for a value-driven transformation of global agrifood systems. This transformation aims to make systems more sustainable, resilient, inclusive, and efficient by focusing on health and environmental outcomes rather than solely on economic metrics like GDP.
The FAO hopes that its findings will drive policymakers and stakeholders to prioritize interventions that reduce health risks, address climate change, and improve food security for a more sustainable future.
