True cost accounting for cocoa, coffee, maize, livestock, palm oil, rice, soybeans and wheat

Drogo, F.; Ignaciuk, A.; Neves, B.; Ilicic, J.;

True cost accounting for cocoa, coffee, maize, livestock, palm oil, rice, soybeans and wheat

An overview of key commodities under the Global Environment Facility’s Food Systems, Land Use and Restoration Impact Program

Copyright licence

Year of publication 2025

Place of publication Rome, Italy ;

Pages 52 p.

Author Drogo, F.; Ignaciuk, A.; Neves, B.; Ilicic, J.;

Publisher FAO ;

Product type Book (stand-alone)

Category Technical report

ISBN 978-92-5-140055-5

Full item page

To cite or share https://doi.org/10.4060/cd6549en

Synopsis (short abstract) Agrifood systems impose significant environmental, social, and health-related externalities that are not reflected in market prices, contributing to unsustainable development and threatening planetary boundaries. True Cost Accounting (TCA) is an emerging tool for quantifying these "hidden costs" and informing policy reforms toward more sustainable food systems. This document supports the Food Systems, Land Use and Restoration (FOLUR) Impact Program by synthesizing TCA-based evidence for eight key commodities: cocoa, coffee, maize, livestock, palm oil, rice, soy, and wheat. It identifies major externalities such as GHG emissions, biodiversity loss, water and soil degradation, child labor, and insufficient farmer incomes, and highlights mitigation strategies including agroforestry, climate-smart practices, and organic farming. While data availability varies across commodities and regions, the evidence suggests that external costs can far exceed market values, particularly in livestock and cocoa sectors. The findings are intended to support FOLUR country teams and stakeholders in shaping policies for nature-positive production and consumption, and to inform public communication and advocacy efforts.

Last updated 28/08/2025

Cite this content as:

Drogo, F., Ignaciuk, A., Neves, B. & Ilicic, J. 2025. True cost accounting for cocoa, coffee, maize, livestock, palm oil, rice, soybeans and wheat – An overview of key commodities under the Global Environment Facility's Food Systems, Land Use and Restoration Impact Program. Rome, FAO.

https://doi.org/10.4060/cd6549en

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Language English

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