FOODCoST

One of the central problems is that these costs are externalised, which means they are not reflected in the market prices and, therefore, are also not reflected in the decision-making of actors in food value chains.

Preliminary research estimates that, on a global scale, the current costs left out of food processes can reach two times the market value of food. As long as sustainably produced foods for healthy diets are more expensive and less profitable than unsustainably produced and less healthy foods, efforts to implement sustainable food systems are unlikely to succeed.

Solving the externalities problem implies measuring them and making them comparable with monetary market value. All actors in the food value chain should be aware of the “true” cost of food. Internalising these externalities based on less distorted cost and price information is fundamental to facilitating market-based responses and contributing to more sustainable production and healthier consumption patterns.