The report, involving 156 countries, showed that the hidden costs of agrifood systems amount to approximately $12 trillion annually.
Of these, health hidden costs account for a larger share “far exceeding the costs related to environmental degradation and social inequalities”, the report said.
‘’The choices we make now, the priorities we set, and the solutions we implement will determine our shared future. Real change begins with individual actions and initiatives, supported by enabling policies and targeted investments,” said FAO Director-General QU Dongyu.
“The transformation of global agrifood systems is fundamental to achieving the SDGs and securing a prosperous future for all,” Dongyu added.
The report identified insufficient intake of whole grains, fruits, and vegetables as one of the major dietary risk factors. The list of 13 risk factors also includes excessive sodium intake; and high consumption of red and processed meats.
Further, the report also highlighted the environmental impact of unsustainable agricultural practices that add to the hidden cost burden with greenhouse gas emissions, nitrogen runoff, land-use changes, and water pollution.
Social costs - representing 8 and 18 per cent of GDP - include poverty and undernourishment. These are the most prevalent in traditional agrifood systems and highlight the urgent need for improved livelihoods and integrated humanitarian, development, and peacebuilding efforts.
Overall, the report calls for a value-driven transformation of agrifood systems to make them more sustainable, resilient, inclusive, and efficient, by going beyond traditional economic measures like GDP.