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Are healthy diets affordable? Using new data on retail prices and diet costs to guide agricultural and food policy

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    Repurposing food and agricultural policies to deliver affordable healthy diets, sustainably and inclusively: what is at stake?
    Background paper for The State of Food Security and Nutrition in the World 2022
    2023
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    The analysis presented in this report examines the impacts of repurposing food and agricultural fiscal support and border support on the cost and affordability of healthy diets and several other key socioeconomic, nutritional and climate indicators. The impacts are estimated at the global level, as well as for various income groups and geographic regions. Scenarios include repurposing fiscal support to producer support targeted to high-priority foods (those where current levels of consumption are below that of recommended levels) and to consumer subsidies targeting high-priority foods.
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    Cost and affordability of healthy diets across and within countries
    Background paper for The State of Food Security and Nutrition in the World 2020. FAO Agricultural Development Economics Technical Study No. 9
    2020
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    Price and affordability are key barriers to accessing sufficient, safe, nutritious food to meet dietary needs and food preferences for an active and healthy life. In this study, the least-cost items available in local markets are identified to estimate the cost of three diet types: energy sufficient, nutrient adequate, and healthy (meeting food-based dietary guidelines). For price and availability the World Bank’s International Comparison Program (ICP) dataset is used, which provides food prices in local currency units (LCU) for 680 foods and non-alcoholic beverages in 170 countries in 2017. In addition, country case studies are developed with national food price datasets in United Republic of Tanzania, Malawi, Ethiopia, Ghana and Myanmar. The findings reveal that healthy diets by any definition are far more expensive than the entire international poverty line of USD 1.90, let alone the upper bound portion of the poverty line that can credibly be reserved for food of USD 1.20. The cost of healthy diets exceeds food expenditures in most countries in the Global South. The findings suggest that nutrition education and behaviour change alone will not substantially improve dietary consumption where nutrient adequate and healthy diets, even in their cheapest form, are unaffordable for the majority of the poor. To make healthy diets cheaper, agricultural policies, research, and development need to shift toward a diversity of nutritious foods.
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    Methods and options to monitor the cost and affordability of a healthy diet globally
    Background paper for The State of Food Security and Nutrition in the World 2022
    2022
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    FAO is focusing its attention on the pursuit of healthy diets and transformations of agrifood systems to ensure healthy diets are affordable for all. Measuring and systematically monitoring the cost and affordability of healthy diets and making progress towards ensuring the affordability of healthy diets is of upmost importance and is urgently needed. To this end, FAO is committed to institutionalize the computation of the least-cost healthy diet, and the corresponding affordability indicator, and to publish updated estimates in the annual The State of Food Security and Nutrition in the World report, as well as provide the full data series on FAOSTAT. This background paper to The State of Food Security and Nutrition in the World 2022 report presents the new methodological refinements applied in the estimation of the average cost of a healthy diet. This is an important methodological update as it results in a more robust indicator that provides greater transparency and supports long-term systematic monitoring utilizing annually updated price data. The paper then explores potential mechanisms and data sources for monitoring globally the cost of a healthy diet.

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