Hidden costs of food production, agrifood systems

We’ve come a long way in the global battle against poverty and malnutrition. Yet, a complete eradication of hunger remains impossible as long as escalating global challenges are not addressed. From global pandemics, worldwide market crises, climate change, biodiversity loss, worsening poverty and numerous calamities, it is time for radical new approaches to the way we produce our food if we are to achieve Zero Hunger.

Dealing with these multiple challenges and feeding the growing global population will require radical new approaches to the way we manage the many intricate relationships that bring food to our plates, what we call agrifood systems. Agrifood systems yield many benefits – they nourish us, provide livelihoods and promote economic growth and at the same time strengthen cultural identities. However, they can also damage the environment, the social fabric and people’s health; such “hidden costs” of agrifood systems are seldom accounted for but are borne by the society as a whole.

The United Nations Food System Summit (UNFSS) in 2021 and, more recently, the UNFSS+2 Stocktaking Moment earlier this year, underlined the importance of fully understanding and reinforcing the positive contributions, value and complexities of agrifood systems, and the need to transform them to realize the 2030 Agenda for Sustainable Development and decrease hunger and poverty worldwide.

Since then, the Food and Agriculture Organization (FAO) of the United Nations has been instrumental in gathering and publishing data and evidence on agrifood systems to foster better informed decision-making. FAO’s latest flagship publication, The State of Food and Agriculture 2023, published on Nov. 6, is dedicated to uncovering the true impacts, both positive and negative, of global agrifood systems, to guide decision-making towards increased sustainability.

Hidden costs of agrifood in the Philippines

The report has found that, in the Philippines, the hidden costs of our agrifood systems are equivalent to 9 percent of gross domestic product (GDP). This is a huge amount, although comparable to that in other middle-income countries. Unhealthy dietary patterns leading to diseases and lower labor productivity are the main culprit. In total, these represent more than 70 percent of the total hidden costs, followed by environmental costs mostly from nitrogen (18 percent) and greenhouse gas (6 percent) emissions.

These results are worrying and beg for a moment of reflection. How can the Philippines, a country blessed with natural abundance and described by many, including the national hero Jose Rizal himself, as an “Eden” on earth, have such large hidden costs, especially from unhealthy diets? How can we ensure our agrifood systems live up to their potential and provide healthy diets to all? A comprehensive approach is necessary – one developed in collaboration with all relevant stakeholders from government, business and civil society.

Initiatives are already underway, as listed by the Philippine Development Plan 2023-2028. FAO, with its vast experience in working on optimizing agrifood systems, stands ready to support these initiatives of the government.

Addressing the unique challenges of the Philippines’ agrifood systems requires specificity and a deep understanding of the local values and knowledge that shape the local agrifood system. As the cornerstone of agrifood systems, farmers and fishers, especially smallholders, should be supported to enhance their business skills in order to supply affordable and nutritious food. Internal market access remains a significant hurdle. Working with traders and retailers to provide a better value to the national production is essential, as is leveraging digital innovation to improve market reach by smallholders and thus food supply in terms of both greater quantity and quality.

This journey is one we must embark on together. This is a daunting task, but with a pragmatic, united and holistic approach, bolstered by good quality data and knowledge, the Philippines can work towards a future where sustainable and equitable agrifood systems are not just aspirational goals, but tangible realities that will benefit all of society, help decrease hunger and combat poverty while providing healthy food for all.

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Lionel Dabbadie is the Food and Agriculture Organization representative in the Philippines.