Global agrifood systems feed us and sustain the livelihoods of many. However, these systems are at a pivotal moment, facing unprecedented challenges that demand innovative solutions and collective action. The 2024 edition of The State of Food and Agriculture builds on the groundbreaking work of the previous edition, delving deeper into the hidden costs of our agrifood systems and charting a course for transformative change.
In 2023, we revealed that the global hidden costs of agrifood systems exceeded 10 trillion US dollars at purchasing power parity in 2020. This year, we refine our understanding of these costs, particularly in the realm of health, and explore how they manifest in different agrifood system types worldwide. Our findings underscore the urgency of action. From the burden of non-communicable diseases in formalizing and industrial agrifood systems, to the persistent challenges of undernourishment in traditional ones, the hidden costs of our agrifood systems touch every corner of the globe.
Agrifood systems, which employ an estimated 1.23 billion people globally, are deeply interconnected, yet all actors do not share equally the burden of hidden costs and the transformation that is needed. Despite their critical role in providing employment, agrifood systems do not always ensure an acceptable standard of living and quality of life. Vulnerable populations, including the poor and food insecure, small-scale value chain actors, women, youth, persons living with disabilities, and Indigenous Peoples, often bear the greatest burden of social hidden costs in these systems. Inequalities and power imbalances are deeply embedded in our agrifood systems.
Addressing these challenges requires tailored solutions for diverse agrifood systems. The innovative agrifood systems typology adopted for this report reveals that different systems face unique challenges and require targeted interventions. It is crucial to address the double burden of malnutrition in transitioning agrifood systems and to tackle the health and environmental hidden costs of industrial agrifood systems with context-specific strategies. Agrifood systems in countries and territories in protracted crisis stand out for their significant burdens of environmental and social hidden costs, underlining the importance of incorporating long-term solutions into exit strategies and/or crisis response.
The importance of true cost accounting (TCA) and stakeholder engagement cannot be overstated. By applying TCA and fostering inclusive stakeholder dialogue, we can identify effective levers for reducing hidden costs and creating more efficient, inclusive, resilient, sustainable and healthy agrifood systems. This approach enables us to make informed decisions that benefit both people and the planet.
Transforming our agrifood systems also requires unprecedented collaboration between policymakers, producers, consumers and financial institutions. Producers, who are on the front line of the impacts of the climate crisis, bear a significant share of the burden while facing challenges to adopt sustainable practices. Mechanisms need to be put in place to ease their financial and administrative burdens, thereby incentivizing transformational change. There is a need to ensure that the benefits and costs of transformation are equitably distributed among stakeholders in agrifood value chains.
Businesses and investors in agrifood systems also have critical roles to play. Agribusinesses range from micro- and small enterprises to global corporations, and their influence can drive sustainable practices across supply chains. Consumer demand for healthier, sustainable and fair production practices is a significant driver of change. Similarly, the investment community must incorporate environmental and social responsibility into their operations, recognizing that “business as usual is a high-risk proposition” in the face of a changing climate.
Consumers, the largest group of agrifood actors globally, can drive transformative change through their purchasing decisions. Dietary shifts to address the low consumption of fruits and whole grains and the overconsumption of sodium are key in all agrifood systems categories, whereas the overconsumption of processed and red meat is particularly relevant in industrial agrifood systems. Addressing these dietary risks would tackle not only health hidden costs, but also a significant portion of environmental costs through land-use change and input use, based on the dependencies captured in this report. Accumulating evidence suggests that interventions to build consumer agency and shape consumer preferences and procurement practices can spur change across food supply chains, promoting sustainability and health.
These insights provide a strategic guide for action, underscoring the urgent need for transformative change in global agrifood systems. The transformation of our agrifood systems is fundamental to achieving the Sustainable Development Goals and securing a prosperous future for all. It requires us to bridge sectoral divides, align policies across health, agriculture and the environment, and ensure that the benefits and costs of change are equitably distributed, including across generations.
As we move forward, it is important to remember that real change begins with individual actions and initiatives. A smallholder farmer adopting sustainable practices, a community coming together to support value generation in local agrifood systems, or a consumer choosing to buy fair trade products that are sustainably produced – all these actions contribute to the larger goal. These individual actions need to be further incentivized through enabling policies and targeted investments. Each of us has a role to play, and our collective efforts can drive the transformation needed to build a better future through the four betters: better production, better nutrition, a better environment and a better life – leaving no one behind. Let us be inspired by the stories of those who are already making a difference and come together to create a global movement for sustainable and inclusive agrifood systems.
The journey ahead will be challenging, but the potential rewards are immense. By embracing the insights and recommendations of this report, we can build agrifood systems that nourish both people and the planet, today and for generations to come. The time for action is now, and the path forward is clear. Let us seize this moment to transform our agrifood systems and create a more sustainable, healthier and inclusive world for all.
