State of Food and Agriculture 2024

Hidden costs within global agrifood systems amount to approximately twelve trillion US dollars annually, according to the report State of Food and Agriculture 2024, entitled Value-driven transformation of agrifood systems and published by the Food and Agriculture Organization of the United Nations (FAO) in November 2024. Of this figure, around 70 per cent arise from unhealthy dietary patterns and are linked to alarming non-communicable diseases (NCDs) such as heart disease, stroke and diabetes, far exceeding the costs related to environmental degradation and social inequalities.

This the first time the publication has focused on the same theme for two consecutive years, highlighting the urgent need for agrifood system transformation to ensure a sustainable future. It builds on the 2023 edition to provide an even more in-depth analysis, utilising true cost accounting to expose the full range of costs and benefits associated with food production, distribution and consumption, including those that are not reflected in market prices – the so-called “hidden costs and benefits”. The report updates those cost estimates, divides them by agrifood system types, and charts a course for transformative change in our agrifood systems.

In examining health impacts, the report identifies 13 dietary risk factors. These include insufficient intake of whole grains, fruits and vegetables, excessive sodium consumption and high intake of red and processed meats, with notable differences across various agrifood systems.

Beyond dietary risks, the environmental impact of unsustainable agricultural practices contributes substantially to the hidden cost burden.  Costs associated with greenhouse gas emissions, nitrogen runoff, land-use changes, and water pollution are particularly high in countries with diversifying agrifood systems – where rapid economic growth is coupled with evolving consumption and production patterns – reaching an estimated USD 720 billion. Formalising and industrial agrifood systems also face significant environmental costs. However, countries affected by protracted crises bear the highest relative environmental costs, equivalent to 20 per cent of their Gross Domestic Product.

Overall, the report calls for a value-driven transformation of agrifood systems to make them more sustainable, resilient, inclusive and efficient. This requires going beyond traditional economic measures like GDP by utilising true cost accounting to recognise hidden costs. With this approach, decision-makers can make more informed choices that enhance the societal value of agrifood systems, acknowledging their essential roles in food security, nutrition, biodiversity conservation and cultural identity. Achieving this transformation also demands bridging sectoral divides, aligning policies across health, agriculture, and the environment, and ensuring that the benefits and costs are equitably shared among all stakeholders.

(FAO/ile)

More information:

• Visit the reports website
• Read more and download the report on the FAO website