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1、THE STATE OF FOOD AND AGRICULTURE 2024FAOVALUE-DRIVEN TRANSFORMATIONOF AGRIFOOD SYSTEMSFOOD AND AGRICULTURETHE STATE OF 2024COUNTRY NOT SPECIFIED.Variety of healthy foods for filling arepas,a typical Latin American dish.COVER PHOTOGRAPH nehophoto/SThis flagship publication is part of The State of th
2、e World series of the Food and Agriculture Organization of the United Nations.Required citation:FAO.2024.The State of Food and Agriculture 2024 Value-driven transformation of agrifood systems.Rome.https:/doi.org/10.4060/cd2616enThe designations employed and the presentation of material in this infor
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13、copyrightfao.org.ISSN 0081-4539Food and Agriculture Organization of the United NationsRome,2024FOOD AND AGRICULTURETHE STATE OF VALUE-DRIVEN TRANSFORMATION OF AGRIFOOD SYSTEMS2024CONTENTSFOREWORD vMETHODOLOGY viiACKNOWLEDGEMENTS viiiABBREVIATIONS xGLOSSARY xiiCORE MESSAGES xviiEXECUTIVE SUMMARY xixC
14、HAPTER 1 CREATING VALUE IN AGRIFOOD SYSTEMS THROUGH AN INTEGRATED APPROACH 1How can true cost accounting help unpack the complexity of agrifood systems?2Refining the hidden cost estimates 5Contextualizing agrifood systems witha typology 8Value-driven transformation for different actors and agrifood
15、systems 12Layout of the report 13CHAPTER 2 ADDRESSING HIDDEN COSTS AT THE NATIONAL LEVEL 17Elaboration of the agrifood systems typology 18Hidden cost burden varies by agrifood systems category 19Dietary risks causing non-communicable diseases by agrifood systems category 21Institutional and fiscal c
16、apacity by agrifood systemscategory 22Global scenarios offer insights based on strong assumptions 26Case study:scenarios for desired outcomes of national agrifood systems 28Processes for identifying specific actions for agrifood systems transformation 32Conclusions 38CHAPTER 3 INCENTIVIZING CHANGE F
17、ROM WITHIN FOOD SUPPLY CHAINS 41Food supply chains:the ongoing state of transformation 42An equitable role for producers in agrifood systems transformation 51Capitalizing on agribusinesses supply chain leverage for transformation 55The strategic role of financial institutions 60Conclusions 63CHAPTER
18、 4 HARNESSING THE ROLE OF CONSUMERS TO TRANSFORM AGRIFOOD SYSTEMS 65Factors shaping consumer food demand 66Impacts of consumption patterns 68Reshaping and redirecting consumerdemand 70Conclusions 85CHAPTER 5 NAVIGATING THE CHALLENGES TO SETTING POLICY AND INVESTMENT PRIORITIES FOR GLOBAL AGRIFOOD SY
19、STEMS TRANSFORMATION 87Distributional challenges,barriers to change,and how these can be addressed 88Stakeholder engagement is fundamental to achieving a true systems approach totransformation 90Public policy for public goods 91Financing local and global transformation 94Conclusions 97ANNEXES 99ANNE
20、X 1List of countries by agrifood systems typologycategory 100ANNEX 2Statistical tables 102ANNEX 3Summary of selected global studies on agrifoodsupport policy reform 116NOTES 118|ii|TABLES 1 Desired outcomes that are most effective in decreasing the hidden cost subcategories by country,2050312 Levers
21、 for channelling purchasing power to healthier and more sustainable diets763 Distributional challenges and mechanisms to address spatial and temporal divides between agrifood systems actors for transformation89A2.1 Environmental,social and health hidden costs(million 2020 PPP dollars)102A2.2 Health
22、hidden costs by dietary patterns (million 2020 PPP dollars)108A3 Existing global studies on agrifood support policy reform116 BOXES 1 Understanding true cost accounting:a two-phase assessment32 Can and should the hidden benefits of agrifood systems be quantified?How?43 Tracing pathways from hidden c
23、osts to impacts 64 Global Burden of Disease data85 Refining and breaking down global health hidden costs in order to identify levers96 Challenges of agrifood systems in protracted crisis countries and territories257 Description of the machine-learning exercise to link food availability to food intak
24、e 308 The need to go to subnational level for tailored country-level true cost accounting assessments339 The challenges and opportunities of stakeholder consultations as part of tailored true cost accounting assessments:insights from Switzerland3510 TEEBAgriFood stakeholder consultations and success
25、 stories:examples from India and Brazil3711 Unlocking potential:the value of addressing the hidden costs of gender gaps inagriculture4912 Hidden costs of coffee production in East African value chains5013 Environmental stewardship among small-scale fisheries5214 Farmer protests in Europe5315 True co
26、st accounting of community-managed natural farming in India5416 The World Banana Forum Commission on Living Wages and Income5517 Retailers call for living wages in the bananasector5818 Introducing true costs at the supermarket checkout:PENNYs initiative60 FIGURES 1 Global map of the agrifood systems
27、 typology112 Rankings of variables used to create the agrifoodsystems typology113 Global agrifood systems actors134 Levers for agrifood systems transformation145 Country income groups within agrifood systemscategories196 Quantified hidden costs by agrifood systems category207 Quantified hidden costs
28、 as a share of gross domestic product by agrifood systems category218 Dietary non-communicable disease risks of under-and over-consumption of foods and nutrients by agrifood systems category239 Selected agrifood systems indicators by agrifood systemscategory2410 Distribution of farm size by agrifood
29、 systemscategory4311 Agricultural value added as a share of gross domestic product and per worker by agrifood systems category4412 Emissions per unit of agricultural land and per unit of value added by agrifood systems category4513 Primary and secondary food production characteristics across agrifoo
30、d systems categories 4614 Employment in agrifood systems by sex and category,202147|iii|CONTENTS19 Investing in sustainable agrifood systems in the Kingdom of the Netherlands 6120 Investing in agroecological businesses in EastAfrica6221 Economic access to energy-sufficient versus healthy diets6722 A
31、ddressing the social hidden costs of agrifood systems through the right to food6823 Assessing diet quality through 24-hour recalls and associations with overweight and obesity and diet-related non-communicable disease risk factors7124 The Cost of Hunger methodology for Africa andLatin America7325 He
32、althy diets are essential,but not sufficient toeliminate stunting7426 The hidden health,environmental and social value of supporting breastfeeding7527 Policies reinforcing healthy food environments:the case of Chile8128 New York Citys procurement policy experience:policy enablers and challenges8429
33、Sodium intake trends:balancing product reformulation and consumer behaviour9130 Guidance for national governments on true cost accounting9331 Reducing emissions from deforestation and forest degradation reducing hidden costs by financing economically viable and sustainable practices 9532 Levelling t
34、he playing field:European Union Corporate Sustainability Due DiligenceDirective96|iv|FOREWORDGlobal 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.The202
35、4 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 10trilli
36、onUSdollars 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 disease
37、s 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 act
38、ors 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-s
39、cale 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
40、 diverse agrifood systems.Theinnovative 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
41、 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 soluti
42、ons 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,res
43、ilient,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 ar
44、e 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 t
45、o 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
46、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 a
47、s 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 a
48、re key in all agrifood systems categories,whereas the overconsumption of processed and|v|FOREWORDred 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 lan
49、d-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 insight
50、s 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
51、 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 f
52、armer 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 incentivi
53、zed 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
54、 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 repo
55、rt,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.Qu Dongyu
56、FAO Director-General|vi|METHODOLOGYPreparation of The State of Food and Agriculture 2024 took place in tandem with that of the 2023 edition,1 with both reports built on the theme of the true cost of food.An advisory group representing all relevant technical units of the Food and Agriculture Organiza
57、tion of the United Nations(FAO)was formed,alongside a panel of external experts,to assist the research and writing team.The advisory group convened from 22 to 24 March 2023,both virtually and in Rome,to review the draft of the 2023 edition andoutline the scope of the 2024 edition.This report drew up
58、on an extensive review of case studies on the hidden costs of agrifood systems.Theidentification of case studies relied on a two-step approach.The first step aimed to move the needle on true cost accounting(TCA)applications,especially in regions and countries not receiving as much attention.Through
59、an open call for proposals on case studies from 6 to 27 October 2023 and in consultation with the FAO Regional Offices,FAO commissioned a total of seven studies as background papers for this report.Second,it gathered case studies through a call for submissions,entitled“How can the hidden costs and b
60、enefits of agrifood systems be effectively incorporated into decision-making for transformation?”,on the Global Forum on Food Security and Nutrition between 5 December 2023 and 29January 2024.Thisresulted in 70 responses.2 The platform also allowed for inputs through a pilot artificial intelligence-
61、based interviewer application,which mimicked a key informant interview,following the steps of Chopra and Haaland(2023).3 The call for submissions also accepted case studies that look at two or more aspects of the hidden costs under environmental,social or health categories.Out of all the responses,a
62、 total of 28case studies were assessed as relevant to feature in this report.Through these steps,FAOcreated an inventory of TCA case studies,incorporating additional examples identified by the research and writing team through literature review and those shared by the advisory group.aThe team presen
63、ted the drafts of the first three chapters to the advisory group and panel of external experts in advance of a workshop held both virtually and in Rome from 3 to 5April 2024.With guidance from the workshop,the report was revised and the final chapters completed.The revised draft was sent for comment
64、s to the management team of FAOs Economic and Social Development stream,and to other FAO streams and the FAO Regional Offices for Africa,Asia and the Pacific,Europe and Central Asia,LatinAmerica and the Caribbean,and the Near East and North Africa.Comments were incorporated in the final draft,which
65、was reviewed by the Director of FAOs Agrifood Economics and Policy Division,theFAO Chief Economist and the Office of the Director-General.a The inventory of case studies is available upon request.|vii|ACKNOWLEDGEMENTSThis edition of the report is dedicated to the memory of Terri Raney(1 August 1956
66、2 September 2024),former FAO Senior Economist and Editor of The State of Food and Agriculture from 2003 to 2015.The State of Food and Agriculture 2024 was prepared by a multidisciplinary team from the Food and Agriculture Organization of the United Nations(FAO),under the direction of David Laborde,D
67、irector of the Agrifood Economics and Policy Division,and Andrea Cattaneo,Senior Economist and Editor of the publication.Overall guidance was provided by Mximo Torero Cullen,Chief Economist,and by the management team of the Economic and Social Development stream.RESEARCH AND WRITING TEAMAslihan Arsl
68、an,Theresa McMenomy,ElisaRanuzzi,Ahmad Sadiddin and Miguel Benitez Humanes.BACKGROUND PAPERS Annet Adong(University of Bonn),Ricardo Arguello(independent consultant),Miguel Benitez Humanes(FAO),John Chavarro Diaz(Pontificia Universidad Javeriana Pontifical Javierian University),Bezawit Beyene Chicha
69、ibelu(University of Bonn),Wanderson Costa(National Institute for Space Research),Davide Cozza(Sustainable Development Solutions Network SDSN),Kevin De Luca(Research Institute of Organic Agriculture FiBL),Yonas Getaneh(Alliance of Bioversity International and the International Center for Tropical Agr
70、iculture),Alexandre Kberle(Potsdam Institute for Climate Impact Research PIK),Lukas Kornher(University of Bonn),Steven Lord(University of Oxford),Aline Mosnier(SDSN),Adrian Mueller(FiBL),Javier Navarro(Commonwealth Scientific and Industrial Research Organisation CSIRO),Yirgalem Nigussie(Policy Studi
71、es Institute),Fernando Ordua-Cabrera(International Institute for Applied Systems Analysis IIASA),Vartika Singh(PIK),Alison Smith(University of Oxford),Frank Sperling(CSIRO)and Yiorgos Vittis(IIASA).ADDITIONAL EXTERNAL CONTRIBUTIONS Harold Alderman(International Food Policy Research Institute IFPRI),
72、Phil Baker(Deakin University),Mauricio Bellon(Arizona State University),Camila Corvaln(University of Chile),Felipe Dizon(World Bank),Nadia El-Hage Scialabba,Susan Horton(University of Waterloo),Milagros de Hoz(New York City Mayors Office of Food Policy),Salman Hussain(United Nations Environment Prog
73、ramme UNEP),Becca B.R.Jablonski(Colorado State University),Thijs de Lange(Wageningen University&Research),Roger Mathisen(Alive&Thrive),Kathleen Merrigan(Arizona State University),Alexander Mueller(TMGResearch gGmbH),Tuan Nguyen(Alive&Thrive),Suzanne Palmieri(Arizona State University),Olivia Riemer(T
74、MG Research gGmbH),Tia Schwab(New York City Mayors Office of Food Policy),Kyoko Shibata Okamura(World Bank),Julie P.Smith(Australian National University)and Marco Springmann(University of Oxford).ADDITIONAL FAO INPUTS Alessandro Albani,Jorge Armijos,Maria Belen Herrera,Federico Drogo,Serena Fortuna,
75、Patrizia Fracassi,Michelle Gaffey,Yonca Gurbuzer,Giles Hanley-Cook,Adriana Ignaciuk,Annarita Macchioni Giaquinto,Erdgin Mane,Lynnette Neufeld,Bernardete Neves,Natalia Piedrahita,Carla Ramirez and Naoko Takahashi.FAO ADVISORY GROUPAstrid Agostini,Koffi Amegbeto,Sandra Caprile,Diana Carter,Federico Dr
76、ogo,Aziz Elbehri,Serena Fortuna,Daniela Godoy,May Hani,Joanna Ilicic,David Laborde,Erdgin Mane,Bernardete Neves,Victor Prada,Marco Sanchez Cantillo,Naoko Takahashi,Francesco Tubiello,Tamas Vattai,Fleur Wouterse and Dmitry Zvyagintsev.|viii|PANEL OF EXTERNAL EXPERTS Reinier de Adelhart Toorop(Impact
77、Institute),Annet Adong(University of Bonn),Abed Al Kareem Yehya(American University of Beirut AUB),Harold Alderman(IFPRI),Lauren Baker(Global Alliance for the Future of Food GAFF),Anna Beerli(Federal Office for Agriculture FOAG),Muhammad Bilal(Westminster International University in Tashkent WIUT),J
78、oao Campari(World Wide Fund for Nature),Bezawit Beyene Chichaibelu(University of Bonn),Tim Crosby(Thread Fund),Kevin De Luca(FiBL),Angelina Frankowska(European Commission),Salome Gelashvili(International School of Economics at TSU Tbilisi State University),Ghinwa Harik(American University of Beirut
79、AUB),Sue Horton(University of Waterloo),Salman Hussain(UNEP),Amanda Jekums(Global Alliance for the Future of Food),Alwin Kopse(FOAG),Lukas Kornher(University of Bonn),Steven Lord(University of Oxford),William Masters(Tufts University),Kathleen Merrigan(Arizona State University),Aline Mosnier(SDSN),A
80、lexander Mueller(TMG Research gGmbH),Adrian Muller(FiBL),Raghav Puri(University of Cornell),Nilufar Rashitova(WIUT),Martin Reesink(Rabobank),Olivia Riemer(TMG Research gGmbH),Saskia Sanders(FOAG),Harpinder Sandhu(Federation University),Marta Santamaria(Capitals Coalition),Marco Springmann(University
81、 of Oxford),Roy Steiner(Rockefeller Foundation),Akhtem Useinov(WIUT),Claire van den Broek(Impact Institute),Bart van Veen(Impact Institute),Martine van Weelden(Capitals Coalition),Marcel Vernooij(IDH Sustainable Trade Initiative),Jenn Yates(True Cost Accounting Accelerator),Yiorgos Vittis(IIASA)and
82、Rami Zurayk(AUB).ANNEXES The annexes were prepared by Aslihan Arslan,Theresa McMenomy and Elisa Ranuzzi with assistance from Steven Lord(University of Oxford).PRODUCTION SUPPORT Poilin Breathnach(consulting editor),Alejandra Jimenez Tabares,Sara Vaz and Daniela Verona.Translations were delivered by
83、the Language Branch of the FAO Governing Bodies Servicing Division.The Publications and Library Branch of the FAO Office of Communications provided editorial support,design and layout,as well as production coordination,for editions in all six official languages.|ix|ABBREVIATIONSAMRantimicrobial resi
84、stanceBMIbody mass indexBRICBrazil,Russian Federation,India andChinaCBAcostbenefit analysisCFPPCity Food Policy ProjectCMFcommercial milk formulaCNFcommunity-managed natural farmingCSDDDCorporate Sustainability Due Diligence DirectiveCSIROCommonwealth Scientific and Industrial Research OrganisationC
85、SRcorporate social responsibilityDALYdisability-adjusted life yearESGenvironmental,social and governanceFABLEFood,Agriculture,Biodiversity,Land-Use and EnergyFAOSTATFAOs Corporate Database for Substantive Statistical DataFBDGsfood-based dietary guidelinesFiBLResearch Institute of Organic Agriculture
86、FOAGFederal Office for AgricultureFSDPFull Sustainable Development PathwayFSECFood System Economics CommissionFSN ForumGlobal Forum on Food Security andNutritionFSTfood systems transformationGAFFGlobal Alliance for the Future of FoodGBDGlobal Burden of DiseaseGCFRPGhana Cocoa Forest REDD+ProgrammeGD
87、Pgross domestic productGDQSGlobal Diet Quality ScoreGFPGood Food PurchasingGHGgreenhouse gasGIZGerman Agency for International CooperationHDPhumanitariandevelopmentpeaceIDHSustainable Trade Initiative IFPRIInternational Food Policy ResearchInstituteIIASAInternational Institute for Applied Systems An
88、alysisIPCIntegrated Food Security PhaseClassificationLCAlife cycle assessmentLMIClower-middle-income countryMDBmultilateral development bankNCDnon-communicable diseaseNDBnational development bankNSRINational Salt Reduction InitiativeOECDOrganisation for Economic Co-operation and DevelopmentPDSPublic
89、 Distribution SystemPHpublic healthPIKPotsdam Institute for Climate ImpactResearchPNpublic nutritionPPPpurchasing power parityREDDreducing emissions from deforestation and forest degradation in developing countries|x|SBTiScience Based Targets initiativeSDGsSustainable Development GoalsSDSNSustainabl
90、e Development SolutionsNetworkSSBsugar-sweetened beverageTCAtrue cost accounting TEEBThe Economics of Ecosystems andBiodiversityTIFSTransformational Investing in FoodSystemsUNDPUnited Nations Development ProgrammeUNEPUnited Nations Environment ProgrammeUPAurban and peri-urban agricultureUPFsultrapro
91、cessed foodsVATvalue added taxVoPValue of ProductionWBFWorld Banana ForumWFPWorld Food ProgrammeWHOWorld Health OrganizationWIUTWestminster International University inTashkentWURWageningen University&Research|xi|GLOSSARYAgrifood systems.Cover the journey of food from farm to table including when it
92、is grown,fished,harvested,processed,packaged,transported,distributed,traded,bought,prepared,eaten and disposed of.They also encompass non-food products that constitute livelihoods and all of the people,activities,investments and choices that play a part in getting us these food and agricultural prod
93、ucts.In the FAO Constitution,the term“agriculture”and its derivatives include fisheries,marine products,forestry and primary forestry products.1Agrifood systems transformation.For the purpose of this report,agrifood systems transformation is the process by which the functioning of agrifood systems i
94、s changed to make them more efficient,inclusive,resilient and sustainable for better production,better nutrition,a better environment and a better life,leaving no one behind.2 Agricultural support.The monetary value of gross transfers to agriculture from consumers and taxpayers arising from governme
95、nt policies that support agriculture,regardless of their objectives and economic impacts.3 Capital.The economic framing of the various stocks in which each type of capital embodies future streams of benefits that contribute to human well-being(see also“stock”,“human capital”,“natural capital”,“produ
96、ced capital”and“social capital”).4Human capital.The knowledge,skills,competencies and attributes embodied in individuals that facilitate the creation of personal,social and economic well-being.4Natural capital.The stock of renewable and non-renewable natural resources that combine to yield a flow of
97、 benefits to people.5,6Produced capital.All manufactured capital,such as buildings,factories,machinery and physical infrastructure(e.g.roads,water systems),as well as all financial capital and intellectual capital(e.g.technology,software,patents,brands).4Social capital.Networks,including institution
98、s,together with shared norms,values and understandings that facilitate cooperation within or among groups.4Corporate social responsibility(CSR).A business model that enables a company to be socially accountable to itself,stakeholders and the public.Through CSR,companies consciously assess and manage
99、 their economic,social and environmental impacts,going beyond compliance with regulatory requirements and extending into actions that further social good,beyond the interests of the firm and the requirements of law.7Cost.In common usage,a cost is the monetary value of goods and services that produce
100、rs and consumers purchase.However,there are situations where such a definition is not helpful.Economists distinguish between the following types of costs:Abatement cost.The monetary cost to reduce a hidden cost from capital change.Can also refer to the minimal monetary cost of reducing hidden costs
101、to a certain level given a costed portfolio of actual or potential abatement measures.8External cost.A cost incurred by individuals or a community as a result of an economic transaction in which they are not directly involved.The difference between private costs and the total cost to society of a pr
102、oduct,service or activity is called an external cost.9Hidden cost.Any cost to individuals or society that is not reflected in the market price of a product or a service.It refers to external costs(i.e.a negative externality)or economic losses triggered by other market or policy failures.Private cost
103、.Costs paid by a consumer to purchase a good or by a firm to purchase capital equipment,hire labour or buy materials or other inputs.These costs are included in production and consumption decisions.9|xii|Social cost.The decrease in economic value to society from a capital change.Estimated in monetar
104、y terms by an economic valuation of the decrease.8Costbenefit analysis.A process for calculating and comparing the benefits and costs of a given policy or project,based on assigning a monetary value to all the associated activities.It is used to evaluate the feasibility or profitability of projects
105、and public policy interventions.It aggregates the costs and benefits in different periods to a single value using a discount rate,assigning lower weight to the costs and benefits as they happen further into the future.4Decision-makers.Those who determine or influence which,when,where and how levers,
106、such as policies and investments,are activated.They include key private,public and civil society agrifood systems actors,as well as donors,governments,local authorities,international organizations and academia.Dietary pattern.The combination of foods that form diets in context and time.Dietary patte
107、rns are contextual,driven by factors of food access and affordability,but also by culture,traditions,values,preferences and other considerations.Healthy diets.Diets comprising four key aspects:diversity(within and across food groups),adequacy(sufficiency of all essential nutrients compared to requir
108、ements),moderation(foods and nutrients that are related to poor health outcomes)and balance(energy and macronutrient intake).Foods consumed should be safe.10Dietary risk factors.The estimated burden of non-communicable diseases for adults aged 25 and older associated with consumption of fruits,veget
109、ables,legumes,whole grains,nuts and seeds,fibre,seafood omega-3 fatty acids,omega-6 polyunsaturated fatty acids,calcium,milk,sodium,red meat,processed meat,sugar-sweetened beverages and trans fats.These dietary risk factors can be harmful(e.g.sugar-sweetened beverages),meaning they increase the risk
110、 of disease;protective(e.g.fruits and vegetables);or with mixed effects depending on the amount consumed and the disease outcome in question.11Disability-adjusted life year(DALY).A universal metric that allows researchers and policymakers to compare very different populations and health conditions o
111、ver time.DALYs equal the sum of years of life lost and years lived with disability.One DALY equals one lost year of healthy life.DALYs allow us to estimate the total number of years lost due to specific causes and risk factors atthe national,regional and global levels.12Elasticity.Price elasticity o
112、f demand gives the percentage change in the demand of a good per percentage change in the price of the same good.Price elasticity of demand is almost always negative,but is generally expressed in absolute value(without sign).When the price elasticity of demand is above 1(in absolute value terms),dem
113、and is said to be“elastic”,that is,demand changes proportionally more than price.When the price elasticity of demand is below 1(in absolute value terms),demand is said to be“inelastic”,that is,it changes proportionally less than the price.13 For example,soft drinks are typically considered an elasti
114、c food item,because if the price increases,demand decreases significantly,as consumers can easily switch to other beverages,whereas bread is considered inelastic because even if prices increase,demand decreases only slightly,as it is astaple food item.Environmental,social and governance(ESG).Refers
115、to the three pillars environmental issues,social issues and corporate governance of reporting frameworks aimed at capturing all the non-financial risks and opportunities inherent in a companys day-to-day activities.There is no standard ESG reporting framework,but reporting is typically done by publi
116、shing a sustainability report and,increasingly,by disclosing data online.14Externality.A positive or negative consequence of an economic activity or transaction that affects other parties without this being reflected in the price of the goods or services transacted.4|xiii|GLOSSARYFiscal space.The sc
117、ope a government has to undertake discretionary fiscal policy(e.g.agricultural support)within existing budgetary plans without endangering market access and debt sustainability.15Food literacy.The knowledge to understand and evaluate food-related information associated with the social aspects of foo
118、d:how it is produced,where it comes from,who grows it and how these things affect our health.16Food security.A situation in which all people at all times have physical and economic access to sufficient,safe and nutritious food that meets their dietary needs and food preferences for an active and hea
119、lthy life.10Food supply chain.A connected series of activities encompassing the primary production of food from crops,livestock,forestry,fisheries and aquaculture,along with the value-adding activities of storage,transportation,processing,wholesale,retail and food service.This definition differs fro
120、m that of“food value chains”as proposed by FAO(2014)by excluding food consumption and disposal.17Flow.A cost or benefit derived from the use of various capital stocks.4Gender wage gap.Difference between the average daily male and female wages for the same type of work as a percentage of the average
121、male wage.18Hidden benefit.Positive impact on society of a product or economic activity that is not reflected in its market price.19Institutional procurement.The long-term process of acquiring goods and services that are essential to institutional operations.Procurement focuses on building strong an
122、d mutually beneficial relationships between buyers and suppliers.Unlike purchasing,procurement processes consider the value of the transaction as a whole,not just the price of the goods or services.20Malnutrition.An abnormal physiological condition caused by inadequate,unbalanced,or excessive intake
123、 of macronutrients and/or micronutrients.Malnutrition includes undernutrition(child stunting and wasting,and vitamin and mineral deficiencies)as well as overweight and obesity.10Market failure.A situation in which the allocation of goods and services by a free market is not efficient,often leading t
124、o a net loss of economic value to society,that is,the full benefits of the use of social resources are not realized.There are many types of market failure,including demerit goods,externality,market power,missing markets and public goods.Materiality.Generally defined as a measure of how important a p
125、iece of information is when making a decision,21 or the importance,worth or usefulness of something.22 In the context of true cost accounting,it reflects significant economic,environmental and social impacts that substantially influence the assessments and decisions of stakeholders.An impact may be
126、considered material if measurement and communication of the impact have the potential toalter decision-making processes.22Double materiality.Applied to the private sector(i.e.businesses and investors),it is the principle that businesses and investors must disclose not only how they are affected by s
127、ustainability issues,such as climate change(“outside in”),but also how their activities impact society andthe environment(“inside out”).Non-communicable diseases(NCDs).Medical conditions that are not transmissible directly from one person to another.They tend to be of long duration and are the resul
128、t of a combination of genetic,physiological,environmental and behavioural factors.23 The main types of NCDs are cardiovascular diseases,cancers,chronic respiratory diseases and diabetes.24Nudge.Any form of choice architecture that alters peoples behaviour in a predictable way without restricting opt
129、ions or significantly changing their economic incentives.25|xiv|Nutritious foods.“Safe foods”that contribute essential nutrients,such as vitamins and minerals(micronutrients),fibre and other components,tohealthy diets that are beneficial for growth,health and development and guard against malnutriti
130、on.In nutritious foods,the presence of nutrients of public health concern,such as saturated fats,free sugars and salt/sodium,is minimized,industrially produced trans fats are eliminated and salt is iodized.10Political economy.The social,economic,cultural and political factors that structure,sustain
131、and transform constellations of public and private actors and their interests and relations over time.It affects the type of political and institutional reform needed to enable and facilitate policy support.26,27Public goods.Products that one individual can enjoy without reducing the amount availabl
132、e to others(e.g.roads,public parks,clean air and other basic societal goods).In other words,they are non-rivalrous and non-excludable.28 The private sector has little incentive to produce public goods,resulting in underproduction and market failure.Purchasing power.A measure of the amount of goods a
133、nd services that can be purchased with agiven amount of money.Prevalence of undernourishment.Percentage ofthenational population experiencing undernourishment,as calculated by FAO etal.(2022).10,29Resilience.The ability of individuals,households,communities,cities,institutions,systems and societies
134、to prevent,anticipate,absorb,adapt and transform positively,efficiently and effectively when faced with a wide range of risks,while maintaining an acceptable level of functioning,without compromising long-term prospects for sustainable development,peace and security,human rights and well-being for a
135、ll.30Scenarios.Representations of possible futures for one or more components of a system,including alternative policy or management options.31Simulations.Quantified scenarios generated using simulation models that are simplified representations of reality that use mathematical formulations to asses
136、s potential impacts and/or generate projections.Such projections can be used for backcasting(e.g.what policy mix is required to reach a stated objective)and forecasting(e.g.how close to the objective a given policy mix would deliver).32 Examples of simulation models include global economic models or
137、 Excel-based calculators such as the FABLE Calculator.Stock.The physical or observable quantities and qualities that underpin various flows within the system,classified as being produced,natural,human or social(see also“capital”).4Stunting.Low height-for-age,reflecting a past episode or episodes of
138、sustained undernutrition.In children under five years of age,stunting is defined as height-for-age less than 2 standard deviations below the WHO Child Growth Standards median.10 Sustainable diets.Diets with low environmental impacts and which contribute to food and nutrition security and to healthy
139、life for present and future generations.Sustainable diets are protective and respectful of biodiversity and ecosystems;culturally acceptable;accessible,economically fair and affordable;nutritionally adequate,safe and healthy;while optimizing natural and human resources.33True cost accounting(TCA).A
140、holistic and systemic approach to measuring and valuing the environmental,social,health and economic costs and benefits generated by agrifood systems to facilitate improved decisions by policymakers,businesses,farmers,investors and consumers.34True pricing.The process of incorporating hidden costs i
141、nto transactions to improve transparency and decision-making.The goal of true pricing is to eliminate or reduce hidden costs as much as possible and ensure affordable and healthy food is accessible to people,in alignment with the right to food.35|xv|GLOSSARYUndernourishment.The condition in which an
142、 individuals habitual food consumption is insufficient to provide the amount of dietary energy required to maintain a normal,active,healthy life.For the purposes of this report,hunger is defined as being synonymous with chronic undernourishment.The prevalence of undernourishment is used to measure h
143、unger.10Undernutrition.The outcome of poor nutritional intake in terms of quantity and/or quality and/or poor absorption and/or poor biological use of nutrients consumed as a result of repeated instances of disease.It includes being underweight for ones age,too short for ones age(stunted),dangerousl
144、y thin for ones height(wasted)or deficient in vitamins and minerals(suffering from micronutrient deficiency).10Voluntary standards.Non-mandatory rules,guidelines or characteristics about a product or a process developed by private-sector actors,representatives of civil society or public-sector agenc
145、ies.Wasting.Low weight-for-height,generally the result of weight loss associated with a recent period of inadequate dietary energy intake and/or disease.In children under five years of age,wasting is defined as weight-for-height less than 2 standard deviations below the WHO Child Growth Standards me
146、dian.10|xvi|1Using true cost accounting(TCA),The State of Food and Agriculture 2023 presented preliminary estimates of the global hidden costs of agrifood systems and stressed the urgent need to address them.This edition refines these estimates,confirming that the global quantified hidden costs of a
147、grifood systems exceed 10trillion dollars at 2020 purchasing power parity(PPP).Strategic actions are needed by all actors to enhance the value of agrifood systems to society.2Unhealthy dietary patterns related to non-communicable diseases account for 70percent of all quantified hidden costs.Thebigge
148、st global risk factors are low intake of whole grains,high intake of sodium,and low intake of fruits.Dueto data constraints,undernutrition costs(wasting,stunting,and micronutrient deficiency)were not calculated,making these figures for health hidden costs a lower bound.3This report adopts an agrifoo
149、d systems typology with six categories protracted crisis,traditional,expanding,diversifying,formalizing and industrial.Based on this typology,it analyses the quantified hidden costs for 153 countries,covering 99 percent of the worlds population.Industrial and diversifying agrifood systems account fo
150、r the highest global quantified hidden costs(amounting to 5.9 trillion 2020PPP dollars),and these are dominated by health hidden costs.4No single transformational strategy exists,given the diversity of possible policy interventions and investments.In the historical transition from traditional to ind
151、ustrial agrifood systems,both outcomes and hidden costs vary.While there is scope for improving efficiency and safety,care must be taken to avoid exacerbating power imbalances,environmental and social hidden costs,and unhealthy dietary transitions.5 Environmental hidden costs are largest in diversif
152、ying agrifood systems(720 billion 2020PPPdollars),followed by formalizing and industrial.However,countries in protracted crisis are the most burdened by environmental hidden costs,when considered as a share of their gross domestic product(GDP)(20 percent).6 Social hidden costs are prevalent in tradi
153、tional and protracted crisis agrifood systems,accounting for 8 and 18 percent of GDP,respectively.These costs driven by undernourishment and poverty emphasize the importance of raising livelihoods and bridging the humanitariandevelopmentpeace nexus.7 Health hidden costs are relevant across all agrif
154、ood systems categories.The leading dietary risk related to non-communicable diseases is low consumption of whole grains in all agrifood systems except protracted crisis and traditional,where the greatest risk is low intake of fruits and vegetables.8In countries and territories with formalizing and i
155、ndustrial agrifood systems,diets high in red and processed meat as well as sodium are significant.Food-based dietary guidelines need to take into account such patterns to more effectively promote healthy diets that decrease health hidden costs.9Transforming agrifood systems to reduce hidden costs wi
156、ll improve well-being.However,the distribution of benefits and costs will be uneven across different stakeholders,countries and time frames.10Everyone has a role to play in driving agrifood systems transformation.It is crucial to integrate efforts made within agrifood systems suchas those made by th
157、e public and private sectors,research institutions and civil society.CORE MESSAGES|xvii|CORE MESSAGES11In increasingly global food supply chains,power imbalances often shift the burden of change onto vulnerable parties such as producers,who end up facing higher regulatory costs and downward price pr
158、essures.In contrast,the benefits of change may be reaped by parties who avoid or pass on additional costs.It is possible to minimize business disruption by staying ahead of anticipated regulatory change and adopting early on sustainable and fair practices.12 Consumers can influence agrifood systems
159、through their purchasing decisions by choosing products that are sustainably produced and healthy.Financial incentives,information and educational programmes,and regulations can support this shift,ensuring that even vulnerable households can participate in and benefit from these changes.13 The signi
160、ficant purchasing power of institutions can be leveraged to reshape food supply chains and improve food environments.Byencouraging consumption of sustainable and nutritious foods,these institutions can influence consumption patterns over generations.This impact can be further enhanced when paired wi
161、th comprehensive food and nutrition education.14Targeted TCA assessments of agrifood systems carried out across varying levels from product and value chain to national can help public and private decision-makers assess priorities and manage trade-offs.Strong consultative engagement ofagrifood system
162、s stakeholders identifies effective and fair actions.|xviii|EXECUTIVE SUMMARYFor the first time,in 2024,The State of Food and Agriculture builds on the previous years edition,which quantified the preliminary global hidden costs of agrifood systems using true cost accounting(TCA)a systems approach th
163、at captures the environmental,social,health and economic impacts,both visible and invisible,of agrifood systems.Using publicly available data for 154 countries,The State of Food and Agriculture 2023 revealed that the global hidden costs of agrifood systems were highly likely to have exceeded 10 tril
164、lion dollars at purchasing power parity(PPP)in 2020.This preliminary figure would probably be even higher without the data constraints preventing the quantification of several relevant hidden cost components for those 154 countries.A notable finding was that global hidden costs are largely driven by
165、 health hidden costs,followed by environmental hidden costs,in upper-middle-and high-income countries.Social hidden costs from poverty and undernourishment are predominant in low-and lower-middle-income countries.Against this backdrop,global visions for transforming agrifood systems are on the rise.
166、Such transformation requires a deeper understanding of national agrifood systems and their hidden costs to identify clear policy levers.Consequently,The State of Food and Agriculture 2024 refines the global estimates presented in the 2023 edition,providing a detailed breakdown of the health hidden c
167、osts for 156 countries,and moves forward,including targeted TCA assessments through case studies.Targeted TCA assessments enable stakeholder consultation and the identification of policy levers needed to address the main drivers of hidden costs,and are,therefore,a fundamental precondition to success
168、ful transformation on any scale.GLOBAL QUANTIFIED HIDDEN COSTS OFAGRIFOOD SYSTEMSRevising and refining the 2023 estimatesThe quantification of hidden costs in the 2023 edition of this report amounted to 12.7trillion 2020 PPPdollars in 2020,of which more than 9trillion(or 73percent)were due to health
169、-related costs.Because of the overwhelming share of health hidden costs associated with dietary patterns that lead to obesity and non-communicable diseases(NCDs),this 2024 edition makes three refinements to their quantification.First,it drops the hidden costs of high body mass index(BMI),as this can
170、 be driven by factors other than agrifood systems.Second,the health hidden costs of diets high in sugar-sweetened beverages are added,whereas these were previously excluded to prevent double-counting with BMI.Third,health hidden costs are now broken down into dietary risk factors associated with NCD
171、s from the Global Burden of Disease study to help identify more tangible policy levers.With these refinements,the new quantified hidden costs amount to 11.6 trillion 2020 PPP dollars for 156 countries globally,with health hidden costs decreasing by around 13 percent to 8.1 trillion 2020PPP dollars,b
172、ut remaining equivalent to 70 percent of global hidden costs,confirming the 2023 editions conclusions that urgent strategic action is needed.Breaking down these results by dietary risk associated with NCDs,this report finds that diets low in whole grains are of concern(18 percent of global quantifie
173、d health hidden costs),alongside diets high in sodium and low in fruits(16 percent each),although there is significant variation across agrifood systems.An agrifood systems typology to identify context-specific policiesTo facilitate policy recommendations better suited to specific contexts,this repo
174、rt analyses quantified hidden costs through the lens of an agrifood systems typology covering 153countries|xix|EXECUTIVE SUMMARYwith six categories protracted crisis,traditional,expanding,diversifying,formalizing and industrial.A set of four variables,comprising agricultural value added per worker,n
175、umber of supermarkets per capita,diet diversity,and urbanization,was used to create this typology,which has been shown to have strong correlations with a number of indicators relevant to sustainable agrifood systems transformation.Industrial and diversifying agrifood systems make the highest contrib
176、ution to global quantified hidden costs(adding up to 5.9 trillion 2020 PPP dollars),dominated by health hidden costs linked to NCDs.These health hidden costs also account for a significant share of the total quantified hidden costs of other agrifood systems,except forthose in the protracted crisis c
177、ategory.Presenting hidden costs as a share of gross domestic product(GDP)gives a sense of the burden placed on the economy.In this respect,the burden of hidden costs is highest in countries in protracted crisis(47percent of GDP)and those with traditional agrifood systems(23 percent of GDP),with soci
178、al hidden costs being particularly important.Theburden of hidden costs decreases as agrifood systems transition towards industrial(6 percent of GDP),as does the relevance of social hidden costs.The burden of health hidden costs associated with NCDs is largest in the diversifying category(10 percent
179、of GDP)and decreases as systems transition towards formalizing and industrial categories.This pattern reflects the dietary transition that accompanies structural transformation.The decreasing share of health hidden costs in GDP in formalizing and industrial systems also reflects higher financial and
180、 institutional capacity and better health systems to address the burden of NCD-related health hidden costs,as well as the rise in demand for healthier diets as incomes increase.The dietary risk factors associated with NCDs driving health hidden costs are also highly diverse across systems,so breakin
181、g them down can help gain insights into potential levers.Diets low in whole grains are the leading risk in all agrifood systems categories,except for protracted crisis and traditional systems.In these two categories,diets low in fruits and vegetables prevail,although these are also relevant in other
182、 categories.Diets high in sodium are also problematic and show an increasing pattern as agrifood systems transition from traditional to formalizing,where they peak and then decrease for industrial agrifood systems.Diets high in processed and red meat,in contrast,increase consistently as agrifood sys
183、tems transition from traditional towards industrial,where they feature among the top three dietary risks.CAPACITY OF AGRIFOOD SYSTEMS TO IMPLEMENT TRANSFORMATIVE ACTIONSCountries capacity to take transformative action will depend to some extent on their institutional and fiscal space,as well as thei
184、r supply chain structures and food environments,which vary widely across the agrifood systems typology.Resources available for repurposing government support towards sustainable,inclusive and healthy food production and consumption patterns are highest in the industrial and formalizing agrifood syst
185、ems categories.Thesecategories also boast the highest government effectiveness index scores that is,the overall capacity of governments to enact transformative policies and highest level of social protection coverage.Diversifying systems face significant challenges due to low government effectivenes
186、s and fiscal space.Out of all agrifood systems categories,diversifying has the highest burden of health hidden costs as a share of GDP.Furthermore,27 percent of the population living in these countries cannot afford a healthy diet,indicating that in addition to dietary risks leading to NCDs,they als
187、o face the burden of malnutrition leading to child stunting and wasting.Countries in this category require policy action|xx|specifically targeting the different types of dietary risks faced,as well as the affordability of nutritious food.Countries and territories in protracted crisis perform worst o
188、n most agrifood systems indicators,with particularly low levels of government effectiveness,agricultural support,social protection coverage,fertilizer use intensity and rural electrification.In these contexts,social and environmental hidden costs stand out(averaging 18 percent and 20 percent of GDP,
189、respectively).This is likely due to the vicious cycle of social and environmental stressors and conflict.While short-term agrifood systems interventions in such situations may focus on food aid,medium-to long-term actions to address environmental stressors,poverty and social inclusion can be a first
190、 step towards agrifood systems that can break this cycle.Stakeholder engagement and scenario analysis to address the quantified hidden costs of agrifood systemsNational stakeholder consultation is needed to assess the plausibility of the quantified hidden costs(including of targeted assessments),ack
191、nowledge and potentially fill data gaps,and contextualize the challenges based on national priorities and commitments.Scenario analysis,including simulations of alternative futures,is another fundamental tool in informing policy actions in targeted assessments.This report commissioned six country ca
192、se studies by the Food,Agriculture,Biodiversity,Land-Use and Energy Consortium Australia,Brazil,Colombia,Ethiopia,India and the United Kingdom of Great Britain and Northern Ireland.These case studies,representing different types of agrifood systems according to the typology introduced in this report
193、,combine scenarios(based on stakeholder consultations)with TCA of the hidden costs of their agrifood systems.Three scenarios were assessed in each country:i)the current trends scenario with a low-ambition vision of feasible actions towards sustainable agrifood systems,strongly dependent on current p
194、olicies;ii)the national commitments scenario reflecting the actions needed to meet existing national commitments and targets;and iii)the global sustainability scenario corresponding to efforts compatible with achieving global sustainability targets.The stakeholder consultations identified nationally
195、 relevant variables that would have to change to increase the sustainability of their agrifood systems.These variables included improvements in crop and livestock productivity,reduced stocking rates(ruminant density)on pasture,and decreased post-harvest losses in all countries.Preventing deforestati
196、on and increasing afforestation are included in the national commitments and global sustainability scenarios.Other variables considered by some countries include changes in trade,biofuels,agroecological practices and irrigation.Dietary changes for healthier consumption patterns are also seen as a ke
197、y factor.The results of the scenario analysis show significant variation from country to country in terms of which of the modelled outcomes is the most effective in reducing the hidden costs of agrifood systems.Drawing on the agrifood systems typology,however,an interesting pattern can be observed.F
198、or the majority of the agrifood systems studied in the industrial and transitional categories,changing dietary patterns is not only the main means of decreasing quantified health hidden costs,but also a very effective way of reducing the quantified environmental hidden costs by freeing land,reducing
199、 and sequestering greenhouse gases(GHGs)and reducing nitrogen emissions.The role of stakeholder consultation in identifying nationally relevant levers was particularly evident in a Swiss Government-backed study.One of the most important enablers of this process is the existence of a national commitm
200、ent to agrifood systems transformation.The results provide an|xxi|EXECUTIVE SUMMARYinitial validation of the hidden costs quantified in The State of Food and Agriculture 2023 and indicate that national-level assessments of the same hidden cost components fall within the uncertainty bounds of the 202
201、3 assessment for Switzerland.The refined and amended hidden cost estimates send a relatively simple message:key entry points for agrifood systems transformation could focus on addressing dietary patterns,biodiversity loss and GHG emissions.The importance of stakeholder participation is also evident
202、in the application of The Economics of Ecosystems and Biodiversity(TEEB)AgriFood Evaluation Framework in several countries,which offers further examples of combining a consultative scenario-building process with TCA.It adopts a comprehensive strategy for policy intervention for agrifood systems tran
203、sformation.Following a scoping stage to collect documentary insights,identify stakeholders and conduct a preliminary evaluation of policy interventions,policy mapping is conducted to pinpoint pertinent policies and their governing mechanisms.Pilot projects are subsequently devised to serve as models
204、 for policy intervention scenarios.Lastly,communication and outreach initiatives are undertaken to enhance awareness and comprehension of the significance of integrating the(hidden and visible)values of nature into government decision-making and education.A closer look at who bears the highest burde
205、n of agrifood systems hidden costs The core actors whose decisions depend on and affect the value provided by agrifood systems range from input suppliers and producers,through processors and wholesalers,to retailers,food service providers and consumers.Thedecisions of one actor at one point in time
206、in one location have implications for actors in another time or location.Consumers may not see the value of improving fertilizer use efficiency on farms that produce their food in another region or country,for instance.Similarly,producers of highly processed food may not see the value of changing th
207、eir product compositions if associated hidden costs are borne by society at large and mostly in the future.As the disconnect between the producers of hidden costs and the cost bearers grows,the benefits to society and the planet of transforming agrifood systems become less visible.This gap can be im
208、possible to bridge if the damage occurs in the distant future or abroad.The inequalities on multiple dimensions(for example,socioeconomic,gender and generational)between who benefits from producing hidden costs and who bears those costs are one of the key challenges of transforming global agrifood s
209、ystems.Theroleof governments and intergovernmental organizations is particularly important in cases where international or intergenerational transfers are needed to address these inequalities.An estimated 1.23 billion people are directly employed in agrifood systems,bringing food to our tables by wa
210、y of food supply chains.While agrifood systems provide employment around the world,they do not always provide an acceptable standard of living and quality of life.In fact,too often,vulnerable populations are left behind across agrifood systems,for example,thepoor and food insecure,small-scale value
211、chain actors,migrants and refugees,women,children and youth,persons living with disabilities,and Indigenous Peoples.These groups bear the greatest burden of the social hidden costs of agrifood systems.The informality of agrifood operations also presents an overlapping set of challenges for agrifood
212、systems transformation.Whileinformal or semi-formal activities serve as the main source of revenue and income for many vulnerable segments of society,they can preserve poor working conditions(such as unofficial employment contracts)and not comply with foodsafety and hygiene regulations.|xxii|Produce
213、rs are on the front line of agrifood systems transformation To bring about change effectively,the concept of a living income,or living income benchmark,can be useful.It refers to the net annual income required for a household in a particular place to afford a decent standard of living for all member
214、s of that household.The discrepancy between the living income benchmark and actual earnings is particularly notable in the food and agriculture sector,with figures ranging from 50to 94 percent for the typical smallholder farmer household.The living income perspective is an important one,because a su
215、ccessful agrifood systems transformation must recognize the unique position of producers:they are on the front line of climate change impacts and bear a significant share of the burden of adopting sustainable practices.While the necessary changes are warranted for society,the benefits of addressing
216、hidden costs are realized all along the supply chain,but producers are not always compensated for the expenses they incur in addressing these costs.In other words,mechanisms need to be put in place to ease the financial and administrative burdens,thereby incentivizing transformational change.Further
217、more,acknowledging the diversity within the agriculture sector is crucial for the development of effective policies.When individual producers join forces by way of collective action,they create a bargaining power they can leverage to advance their goals for economic growth,as well as transformationa
218、l change.Recent protests by farmers globally underscore the importance of integrating political economy considerations from the outset,by initiating processes that are inclusive and address issues of distributive justice and participation.European farmers have protested against policies,the increase
219、 in red tape and the tightening of environmental laws.Transformational change,therefore,needs to be designed so that the costs of taking action today are paid by those reaping the long-term benefits.Government pressure for agrifood systems reform,be it in the form of regulation or incentives,must be
220、 carried out in an inclusive manner.One option is participation in certification programmes,known as voluntary sustainability standards,such as fair trade or organic certifications,which can be a means for producers to receive compensation for the costs of transition.However,although the effect of s
221、uch certifications on producers welfare is generally positive,it varies substantially by standard,crop and farmer organization.Standards that apply a system of quality-based price differentiation have the greatest impact on net farm revenue through a price effect.Certification schemes that enable pr
222、oducers to sell their products with a price premium facilitate the internalization of some,but not all,hidden costs,depending on the specific objectives of the programme.Astudy on banana supply chains finds external costs 45 percent lower for fair trade producers,making the social case for such qual
223、ity standards and certifications.Agribusinesses and investors have an important role to playBusinesses in agrifood systems engage in various activities beyond primary production,including aggregating,transporting,processing and selling food products to consumers.These businesses range from micro-and
224、 small enterprises to global corporations,with varying levels of concentration across agrifood systems types.Each subsequent agribusiness in the chain can exert business leverage over the preceding one,depending on itsscale and market domination.The investment community including international finan
225、cial institutions,banks and insurance companies is facing increasing pressure from investors and stakeholders to incorporate environmental and social responsibility into its operations.It is becoming increasingly clear that any investment in agrifood systems must become future-proofed in the face of
226、 a changing climate.The notion that“business|xxiii|EXECUTIVE SUMMARYas usual is a high-risk proposition”is resonating.This is reflected in the increasing participation of large firms conducting environmental,social and governance(ESG)reporting.Interestingly,ESG practices promoted by agrifood busines
227、ses are often implemented at the primary production level,but the benefits of the changes are enjoyed by other actors in the supply chain,highlighting once again distributional issues along value chains.Agribusinesses and financial institutions with more leverage have roles to play beyond exerting t
228、heir influence over other actors,by investing in better practices,be it through finance,contract arrangements,technical assistance or overall skills and awareness building.Meanwhile,forums such as the World Banana Forum foster collaboration across the different levels of food supply chains and can b
229、e a key means of ensuring a just transition.Consumers are the last vital piece of thepuzzleConsumers are the largest group of agrifood actors globally,even though they may lack political clout and visibility.When in a position of agency,consumers can drive the transformative change needed in agrifoo
230、d systems through their purchasing power.From an environmental perspective,dietary shifts,especially reducing overall animal product consumption in countries where it is excessively high,can significantly lower GHG emissions and mitigate other environmental harms,such as biodiversity loss,land-use c
231、hange and nutrient runoff.However,given the large discrepancies in dietary quality around the world,in some places,higher consumption of animal products may be necessary for a balanced diet,and the burden of countering the environmental damage wrought since the Industrial Revolution cannot be equall
232、y distributed.In many countries,populations are facing a double burden of malnutrition,where undernutrition coexists with overweight,obesity or diet-related NCDs,probably requiring a combination of shifting consumer demand,economic measures and social safety nets.Theprevalence of the double burden o
233、f malnutrition is especially high in countries with protracted crisis and traditional agrifood systems(70 percent)and it decreases as one moves towards industrial agrifood systems(27 percent).The opposite is seen with adult obesity and overweight(from 30 percent in protracted crisis and traditional
234、agrifood systems to around 60 percent in industrial agrifood systems).Special consideration needs to be given to the nutritional status of children.Children that suffer from undernutrition,particularly before the age of five,face profound and lasting impacts on their physical and cognitive developme
235、nt.Worldwide,in 2022,an estimated 148.1million children under five years of age(22.3percent)were stunted,45million(6.8percent)were wasted and 37million(5.6percent)were overweight.A methodology applied by the World Food Programme,knownas“The Cost of Hunger”,estimates the social and economic impacts o
236、f child undernutrition,focusing on the health,education and labour sectors.The results highlight the cross-sectoral need for early childhood nutrition interventions.The strength of consumers purchasing power in driving agrifood systems transformation depends on both their ability and their willingne
237、ss to pay for a different basket of food products,which may come at a higher price.However,economic constraints do not explain all consumption behaviour.Food preferences,stemming from taste and required preparation time and skills,for instance,as well as food access and environments,are also pertine
238、nt.In general,however,individual consumers,as well as institutions with significant food procurement needs,such as schools and hospitals,can capitalize on their purchasing power to simultaneously achieve transformation goals and raise awareness.|xxiv|Other levers for influencing consumer demandEcono
239、mic levers can affect household consumption patterns by varying either relative prices or the incomes available for food purchases.Price measures include taxes and subsidies on food products.For example,taxes on sugar-sweetened beverages,implemented in over 100 countries,have been effective in reduc
240、ing sales and associated health costs linked to obesity and chronic diseases.Conversely,subsidizing fruits and vegetables has shown positive results where demand is price sensitive.Reforming existing tax regimes,such as differentiating value added tax rates based on health and environmental consider
241、ations,could address environmental and health costs without reducing government revenue.Combining these financial measures with improved information,labelling measures,regulations and educational programmes on nutrition,health and sustainability is essential to change diets.The effectiveness of taxe
242、s and subsidies in improving diets hinges on the assumption that consumers do not face budgetary constraints to cover basic nutrient needs.Where undernourishment remains a problem,measures that target income can be effective.These measures include nutrition-sensitive social safety nets that try to e
243、nhance food security,promote social inclusion and boost diet quality,either through cash transfers or vouchers that supplement income or with in-kind food assistance.Institutional procurement,such as school and hospital meals,can also have a ripple effect,prompting long-term change.School meals,the
244、most widespread food safety net,can be particularly instrumental in changing consumption patterns over generations when accompanied by effective food and nutrition education.Entities involved in food procurement can have a profound impact by requiring TCA data for the products they buy and shifting
245、their decision-making to maximize true value.Stakeholder engagement for a true systems approach to transformationThis report has highlighted the need to document the connections between the beneficiaries of todays actions(carried out by producers,agribusinesses and consumers)and the bearers of the h
246、idden costs of these actions,be they local or global actors of today,tomorrow or generations to come.Involving all interdependent actors within agrifood systems is needed to identify effective levers towards the most suitable development paths.For instance,under increasing consumer pressure for sust
247、ainability and amid government regulations on health and environment,agrifood businesses have been self-regulating for a long time.Voluntary sustainability standards,ESGreporting and multicriteria accounting are all steps in the right direction.However,these are not sufficient for transformation to
248、occur at scale,especially as agribusinesses may meet only the standards required to maintain brand value and fall short of necessary transformative action.As such,these principles need to be combined with well-designed incentive structures,government regulation and action,as well as guidance from in
249、ternational organizations andthe TCA community.Despite the overwhelming importance of sustainable and healthy diets in agrifood systems transformation,health ministries remain largely absent from the current discourse on stakeholder engagement needed to achieve it.Their involvement is an important n
250、ext step for global agrifood systems transformation,aseven in places where health hidden costs are still relatively low,having health ministries at the table can ensure that food value chains and social safety nets can be designed to nip the problem in the bud or avoid the historical peak in unhealt
251、hy diets seen during agrifood systems transitions.|xxv|EXECUTIVE SUMMARYShaping government policy to meet multiple objectivesGovernments make many decisions based on imperfect information to meet their national commitments under current agrifood systems structures.This report analyses quantified hid
252、den costs through the lens of an agrifood systems typology,which can facilitate policy recommendations better suited to specific contexts.In industrial agrifood systems where primary production is input intensive,value chains are long,urbanization is high and unhealthy dietary patterns create the hi
253、ghest hidden costs interventions to address unhealthy dietary patterns can be prioritized,thus also addressing a substantial share of environmental hidden costs.Upgrading food-based dietary guidelines to an agrifood systems approach,mandatory nutrient labels and certifications,and information campai
254、gns on health and environmental impacts(including advertisements,regulations on transparency and reporting standards)are all effective levers.However,as policies aiming to change consumption behaviour may take a long time to reduce health hidden costs effectively(even in part),this lever cannot be i
255、mplemented at the expense of actions to address environmental hidden costs.True cost accounting can help parse value created by various interventions.In traditional agrifood systems where primary production is inefficient,value chains are shorter,urbanization is low,and poverty and undernourishment
256、create the highest hidden costs social safety nets will remain integral policy levers to ensure the food security and nutrition of the most vulnerable.At the same time,the double burden of malnutrition is also highest in these agrifood systems,suggesting a need to complement conventional productivit
257、y-enhancing interventions with environmental and dietary levers from the outset to avoid the increase in environmental footprint and peak health costs historically observed during agrifood systems transitions.Transitional agrifood systems(expanding,diversifying and formalizing categories),where urba
258、nization is increasing and food value chains are lengthening as health hidden costs peak,need to invest in redesigning food value chain development to divert the course of nutrition transitions,leapfrog certain historical transitions and avoid the mistakes of industrial agrifood systems.There is a g
259、rowing amount of encouraging evidence on the effectiveness of policy mixes that combine traditional economic and behavioural incentives,though more research is needed to expand this evidence to cover traditional and transitional agrifood systems.Financing the transformationIt is now well established
260、 that financial flows to agrifood systems need to increase significantly to finance the necessary transformation.Many promising initiatives by the finance sector are increasingly incorporating environmental and social responsibility into their operations.Scaling these up sufficiently to achieve glob
261、al agrifood systems transformation,however,seems bound by“hidden constraints”.These include the distributional issues that arise between different agrifood systems actors and the institutional status quo that makes financing the needed transformations very challenging.The global cost of transformati
262、on is estimated to be within the means of global financial resources;however,as its distribution between countries is highly uneven,financing may be necessary.Especially countries affected by multiple drivers of food insecurity and malnutrition,climate extremes and conflict have limited access to fi
263、nancing,which calls for innovative and collaborative financing partnerships to ensure ajust transition.|xxvi|THE WAY FORWARDAddressing the hidden costs revealed in TheStateof Food and Agriculture 2023 and refined in this report inherently requires the distributional issues entrenched in global and l
264、ocal agrifood systems to be addressed as well.Globally,distributional imbalances occur between populations that enjoy the benefits of the status quo and those that bear the hidden costs which may be those same populations at some point in the future or future generations separated by space and time.
265、Even within national boundaries,trade-offs between different constituencies arise,as evidenced by the recent farmer protests in many parts of the world.One of basic prerequisites to transforming any large system that comprises interconnections between actors with overlapping and conflicting interest
266、s is the existence of an effective institutional and regulatory environment.Creating clear rules and standards and instilling trust that they will be applied fairly to all stakeholders,regardless of size or political influence,takes some of the uncertainty out of investments that contribute to susta
267、inability and fuel innovation.It is also clear that bringing about the dietary shifts necessary to drive agrifood systems transformation will require a mix of levers.These can use economic influences,such as taxes,subsidies and social safety nets,or aim to affect behavioural change by increasing foo
268、d literacy and raising awareness about the multidimensional impacts of available food choices.Institutions can also play a critical role by facilitating a unique food environment,such as schools that provide meals and involve children in hands-on and skills-building activities to do with food,while
269、also channelling their purchases to the broader benefit of society.While the global community can always hope for innovation to solve many of the problems of agrifood systems,this alone is unlikely to steer agrifood systems towards sustainability.Governance across agrifood systems needs to be transf
270、ormed through political will and strong accountability at the international level.n|xxvii|UKRAINE Preparing dough by hand.sweet marshmallow/S CHAPTER 1 CREATING VALUE IN AGRIFOOD SYSTEMS THROUGH AN INTEGRATED APPROACH KEY MESSAGES As demonstrated in The State of Food and Agriculture 2023,true cost a
271、ccounting(TCA)is a powerful approach to uncovering the hidden costs generated by current agrifood systems and identifying policy levers to enhance the value of agrifood systems to society.Following on from the awareness-building of last years edition,which revealed that the global hidden costs of ag
272、rifood systems were likely to have exceeded 10 trillion dollars at purchasing power parity(PPP)in 2020,this edition refines the global TCA assessment and undertakes targeted assessments that link impacts to pathways,with extensive stakeholder consultations to prioritize feasible actions.The environm
273、ental,social and health hidden costs are analysed through the lens of an agrifood systems typology with six categories protracted crisis,traditional,expanding,diversifying,formalizing and industrial to facilitate policy recommendations better suited to each specific context.By improving on the hidde
274、n costs quantified in The State of Food and Agriculture 2023,this report unpacks the health hidden costs associated with unhealthy dietary patterns linked to an increased risk ofnon-communicable diseases(NCDs).Case studies show how targeted TCA assessments conducted across multiple agrifood systems
275、categories provide more nuanced insights into the requisite agrifood systems transformation and potential actions moving forward.We can no longer think and act in silos when it comes to agrifood systems transformation.Coordinated action between ministries,the public and private sectors,research inst
276、itutions and policymakers,as well as other agrifood systems actors,is essential to make agrifood systems sustainable and inclusive.The complexity of agrifood systems combined with the increasing pressure they face to meet multiple goals amid numerous constraints has amplified the need to apply a sys
277、tems lens to all endeavours to achieve the Sustainable Development Goals(SDGs).On current trends,global agrifood systems are set to fall short of this objective,particularly in the case of SDG 2(Zero Hunger),as projections estimate that about 582 million people will be chronically undernourished in
278、2030.1 The 2024 Global Policy Report of the Food System Economics Commission clearly sets out the urgency of agrifood systems transformation,as well as the benefits and costs involved.2 It finds that inclusive,health-enhancing and environmentally sustainable global agrifood systems are feasible if a
279、 set of transformative measures is adopted.Global feasibility,however,does not necessarily translate into national feasibility,as the costs to low-income countries,for instance,are beyond their financing capacity,requiring a global financial system to support them.3The United Nations Food Systems Su
280、mmit in 2021 and the UN Food Systems Summit+2 Stocktaking Moment(UNFSS+2)in 2023 were significant turning points for national,regional and global governance structures.The COVID-19 pandemic laid bare the challenges surrounding|1|CHAPTER 1 CREATING VALUE IN AGRIFOOD SYSTEMS THROUGH AN INTEGRATED APPR
281、OACHagrifood systems,amid ever more intense and frequent climatic shocks and political instability.Despite the complexity of the challenges,many countries have reiterated their commitment to the SDGs and formulated new commitments through national food systems transformation(FST)pathways.As of 2023,
282、127 of the 193 United Nations Members had submitted FST pathways.Adding more commitments to existing national priorities,however,increases the probability of trade-offs and challenges,especially in the face of political,institutional and financial constraints.Decision-makers and stakeholders increas
283、ingly need tools to help prioritize multiple objectives,minimizing trade-offs and maximizing synergies.True cost accounting is a tool that can help prioritize multiple objectives and levers based on the true costs and benefits of agrifood systems.The foundational definition of TCA rests on a holisti
284、c systems approach,capturing the impacts and dependencies of agrifood systems on natural,social,human and produced capitals.4 Although the large-scale use of TCA faces challenges due to data and resource limitations,its aspirational goal of measuring and valuing all hidden costs and benefits to guid
285、e the decisions of all agrifood systems actors has been gaining traction.Thegrowing use of TCA in different situations by governments,businesses,financiers,civil society and academics is already contributing to the way we think and act about agrifood systems transformation.5,6 Box 1 further explores
286、 the definition of TCA and how a two-phase approach can inform agrifood systems transformation.Using the TCA approach at national level,with publicly available data for 154 countries,TheState of Food and Agriculture 2023 revealed that the global hidden costs of agrifood systems were likely to have e
287、xceeded 10 trillion dollars in 2020.b This preliminary figure would have probably been even higher without the data constraints preventing the quantification of several relevant hidden cost components for those 154 countries.Global hidden costs are predominantly driven by health hidden costs in uppe
288、r-middle-and high-income countries;however,the burden on national budgets is greatest in low-income b All results of TCA assessments are expressed in 2020 PPP dollars throughout this report.countries(where social hidden costs prevail).This finding sparked considerable interest in conducting targeted
289、 context-specific TCA assessments proposed as phase two of the TCA approach in the 2023 edition of this report.An important and unintended consequence of adopting TCA to reveal the true cost of food with a view to transforming agrifood systems was the perceived failure to acknowledge the full scale
290、of hidden benefits.As stated in the opening paragraphs of The State of Food and Agriculture 2023,the value of agrifood systems to society is probably well beyond what is measured in gross domestic product(GDP),given the array of non-monetizable hidden benefits.These range from biodiversity conservat
291、ion,carbon storage and sequestration,watershed regulation and cultural identity to the nourishment of the entire human population,sustaining not only agrifood systems but also the broader economy.In a sense,the worlds entire GDP can be counted as a benefit of agrifood systems,as human productive act
292、ivity would not exist without food.It is important to note that the TCA results published in the 2023 edition of this report are not meant as a costbenefit assessment for making decisions based on the indisputable existence of agrifood systems.Rather,they help quantify the marginal(rather than total
293、)hidden costs(and benefits)of our actions throughout agrifood systems to inform decisions on national,regional and global commitments.Box 2 discusses the scope and limitations of various approaches to quantifying the hidden benefits of global agrifood systems.nHOW CAN TRUE COST ACCOUNTING HELP UNPAC
294、K THE COMPLEXITY OF AGRIFOOD SYSTEMS?The complexity of agrifood systems increases with a shift from traditional and local systems to more interconnected national,regional and global systems.This is driven by the increased number of stakeholders involved in longer value chains,leading to more complex
295、 impacts and interdependencies of action on all four capitals(natural,social,human and produced)|2|THE STATE OF FOOD AND AGRICULTURE 2024 BOX 1 UNDERSTANDING TRUE COST ACCOUNTING:A TWO-PHASE ASSESSMENTRecent advances in evaluation and accounting frameworks create an unprecedented opportunity for com
296、prehensive assessments of agrifood systems activities through the true cost accounting(TCA)approach,defined in The State of Food and Agriculture 2023 as:a holistic and systemic approach to measure and value the environmental,social,health and economic costs and benefits generated by agrifood systems
297、 to facilitate improved decisions by policymakers,businesses,farmers,investors and consumers.A fundamental aspect of TCA is that it extends assessments beyond market exchanges to measure and value all flows to and from agrifood systems,including those not captured by market transactions.True cost ac
298、counting assessments can adopt a variety of methods depending on a countrys resources,data,capacity and reporting systems.Valuation can be either qualitative or quantitative,including monetary.The four dimensions covered environmental,social,health and economic are reflected in the four capitals:nat
299、ural,social,human and produced.Given that TCA is often hampered by data gaps,methodological limitations and institutional barriers,The State of Food and Agriculture 2023 proposed a two-phase assessment in which available data and information are first analysed to provide an initial understanding of
300、agrifood systems(see the figure).Such initial analyses can prompt dialogue between relevant stakeholders to identify the most important challenges and the most urgent data gaps to be filled to better understand the context and guide interventions.National-level estimates presented in last years edit
301、ion of the report served as this first phase,which aimed to raise awareness,even if the quantified hidden costs of agrifood systems were incomplete,subject to a high degree of uncertainty and mute on the costs of transformation.This edition moves the needle further on these national estimates,with r
302、efinements to the data used.The second phase is to carry out targeted and context-specific TCA assessments to better inform decision-makers on how to leverage policy,regulation,standards and private capital for a transition to sustainable agrifood systems.The case studies presented herein showcase h
303、ow such targeted TCA assessments can delve into the multiple dependencies within agrifood systems,providing nuanced insights to inform the transformation.Improved decision-makingfor interventions to transform agrifood systems and re-evaluate and monitor progressDialogue with stakeholders to agree on
304、 agrifood systems priorities based on initial assessments and national prioritiesIn-depth targeted assessments on focused specificities based on priorities agreed on during the dialogue with stakeholdersInitial national-level assessment for overall understanding of impacts and hidden costs of agrifo
305、od systemsTHE PROCESSSTARTS HEREPHASE 1PHASE 2SOURCE:FAO.2023.Figure 3.In:The State of Food and Agriculture 2023 Revealing the true cost of food to transform agrifood systems.Rome.https:/doi.org/10.4060/cc7724en FIGURE TWO-PHASE AGRIFOOD SYSTEMS ASSESSMENT PROCESS|3|CHAPTER 1 CREATING VALUE IN AGRIF
306、OOD SYSTEMS THROUGH AN INTEGRATED APPROACHat increasingly larger scales.It is,therefore,not surprising that efforts to measure and value the impacts of agrifood systems activities started on a smaller scale(product or value chain),with capitals that are relatively easier to value(that is,natural and
307、 produced).The principles of costbenefit analysis have been extended to cover environmental impacts in well-established environmental valuation literature,leading to greater use of life cycle assessments over the past 30years.7 True cost accounting brings a much broader systems lens to account for a
308、ll capitals and uses these valuation approaches,among others,as tools.Despite the reference to accounting in its name,TCA acknowledges that not all impacts are quantifiable or monetizable,so qualitative assessments are a critical complement to quantitative measurement and valuation in TCA assessment
309、s.5,8 BOX 2 CAN AND SHOULD THE HIDDEN BENEFITS OF AGRIFOOD SYSTEMS BE QUANTIFIED?HOW?The hidden benefits of agrifood systems can be just as important as the hidden costs.This report does incorporate some hidden benefits of interventions by including them as negative hidden costs.For example,the appr
310、oach allows for accounting for interventions that balance the needs of agriculture and forestry in land-use practices,which could create synergistic opportunities to increase sustainable crop productions and improve rural livelihoods,while reducing deforestation.Other hidden benefits may be perceive
311、d as hidden for those who generate them,but are captured by other economic actors and enter into market transactions.One such case is the tourism sector,which benefits economically from beautiful agricultural landscapes that attract visitors.In such cases,the“hidden”benefits are redistributed across
312、 the economy,but are not really hidden from gross domestic product(GDP).However,there are also hidden benefits that are not usually factored into traditional true cost accounting assessments.There are different ways of approximating them,but all are imperfect“back-of-the-envelope”approaches.Such est
313、imates of the hidden benefits of agrifood systems can range from the quantification of consumer surpluses to considering global GDP in its entirety,based on the fact that without food there would be no labour,hence no GDP.The consumer surplus is the difference between what consumers are willing to p
314、ay for food and the amount they actually pay.The surplus,which is an economic benefit not reflected in GDP,is often sizeable,thanks to the efficient functioning of markets.If consumer willingness to pay could be estimated for each unit of food demand globally(which is no easy task),the consumer surp
315、lus could be quantified.Whichever way one calculates them,the total benefits of agrifood systems are unlikely to change much with policy interventions.Rather,there will probably be a redistribution of benefits between those that are visible through market transactions and those that are hidden.Suppo
316、se,for example,that the price of food increases due to a regulation that addresses environmental hidden costs.As prices rise,part of the hidden consumer surplus becomes more visible.Consumers end up spending more on food,which shifts the economic benefits from being hidden in the consumer surplus to
317、 being visible in market transactions.In this scenario,the benefits that were once intangible and not captured in GDP statistics become apparent through higher expenditures recorded in the market.The resulting change in total benefits would be relatively small,with the most significant burden being
318、borne by vulnerable households,whowould no longer be able to afford food as they did before the price increase.This shift underscores the delicate balance needed in agrifood systems transformation to address hidden costs without disproportionately affecting vulnerable stakeholders in this case,the n
319、eed to ensure continued access to affordable and healthy diets.However,it is important to note that this is a distributional issue to be resolved through inclusive rural transformation complemented by redistributive policies and social protection rather than through accounting for hidden benefits,as
320、 the bulk of the impact will be the visibility of the hidden benefits of agrifood systems,without a major change in total benefits.Based on this observation,focusing on reducing the hidden costs of agrifood systems makes sense,as long as the potential associated trade-offs between social,environment
321、al and health hidden costs are taken into account.SOURCE:Authors own elaboration.|4|THE STATE OF FOOD AND AGRICULTURE 2024Applications of TCA have been increasing over the last decade,aided by the proliferation of frameworks and guidelines that can be implemented for different functional units,rangi
322、ng from product,organizational and investment to sectoral and geographical.912 While the first three of these functional units are classified as bottom-up approaches,the latter two are top down.True cost accounting applications in the former category are typically smaller in scope and are relevant t
323、o operational and organizational decision-makers and consumers,while applications in the latter category are more relevant to local and international policymakers in agrifood systems.5The preliminary estimates of the hidden costs of agrifood systems published in TheState of Food and Agriculture 2023
324、 are based on the largest-scope TCA exercise to date in the top-down category in 154 countries.Because of the trade-off between scope and detail,the impacts and dependencies assessed covered those that could be quantified using globally available public data,so exclude some components relevant to gu
325、iding policy at local level.Nevertheless,they constitute a leap forward in assessing the hidden costs of global agrifood systems in a consistent and comparable manner and pave the way for the phase two assessments outlined in the conceptual framework introduced in the 2023 edition of this report(Box
326、 1).Two pillars of the second phase of TCA assessments for an informed agrifood systems transformation are:i)stakeholder consultation;and ii)clear identification of policy levers.Policy levers need to address the main drivers of the hidden costs to be effective,so the links between impact pathways a
327、nd impacts need to be clearly identified.Guidelines for TCA implementation of smaller scope lay out the process of identifying how agrifood systems activity affects changes in capital stocks,flows and outcomes for all four capitals to define the impacts to be measured and valued.This process relies
328、on materiality assessments with strong stakeholder engagement to identify pathways for change.1012The 2024 edition of The State of Food and Agriculture showcases phase two of the global TCA assessment through targeted case studies of varying scope and presents them within an agrifood systems typolog
329、y to identify pathways for change.The hidden costs of global agrifood systems quantified in 2023 were categorized by the environmental,social and health pathways unlike TCA applications of smaller scope,which categorize findings by impact domain.These pathways capture the drivers of an impact that c
330、an occur in another domain;therefore,distinguishing pathways from the impacts themselves is important when it comes to identifying entry points for action(Box 3).Evaluating the full range of impacts stemming from the environmental,social and health pathways is the aspirational goal of TCA,though the
331、 data and institutional challenges make it very hard to cover all impact domains in practice.Case studies sourced from around the world for this study attest to these challenges and are featured in this report if they address two or more domains relevant to the policy applications of the TCA approac
332、h.They also underline the importance of including a mapping and discussion of all capitals to ensure that all trade-offs and synergies are captured in future assessments,even if necessary data are not available.nREFINING THE HIDDEN COST ESTIMATESThe quantification of hidden costs in the 2023 edition
333、 of The State of Food and Agriculture for 154 countries amounted to 12.7 trillion dollars in 2020,of which more than 9 trillion(or 73 percent)were due to health-related costs.Because of the overwhelming share of health hidden costs associated with dietary patterns,the 2024 edition makes some refinements to their quantification.These refinements have led to the analysis expanding to 156 countries,u