{"id":85973,"date":"2024-01-10T08:57:50","date_gmt":"2024-01-10T07:57:50","guid":{"rendered":"https:\/\/www.bioecoactual.com\/?p=85973"},"modified":"2024-08-12T09:09:42","modified_gmt":"2024-08-12T07:09:42","slug":"counting-the-hidden-cost-of-cheap-food","status":"publish","type":"post","link":"https:\/\/www.bioecoactual.com\/en\/2024\/01\/10\/counting-the-hidden-cost-of-cheap-food\/","title":{"rendered":"Counting the hidden cost of \u00abcheap food\u00bb"},"content":{"rendered":"

The hidden cost of cheap food is finally being exposed, helping organic to compete more fairly<\/strong>. Why it is that food that makes us sick and is disproportionately damaging to the climate and environment is so cheap? It\u2019s an important question, and one that a lot of powerful organisations and businesses would prefer that we didn\u2019t ask. The hidden cost of \u00abcheap food\u00bb<\/strong> is a dark secret that the industrial food industry would really like to keep that way.<\/p>\n

\"\u00ab\u2018cheap
123rfLimited\u00a9mingphotography.<\/figcaption><\/figure>\n

The illusion of cheap food perpetuates the idea that organic, healthy and artisanal foods are expensive and \u2018elitist’ \u2013 a favourite narrative of organic’s critics. This creates real challenges, not least because consumers typically cite price as the biggest factor preventing them from buying organic. Explaining why organic food costs more and making the case for higher food prices more generally during a cost of living crisis is even harder.<\/p>\n

Nevertheless, in the last few years there has been a concerted effort from a broad range of actors \u2013 from organic groups, to environment campaigners; consumer bodies to academics \u2013 to start a wider debate on this politically charged issue.<\/p>\n

Stark findings<\/h2>\n

Studies on both side of the Atlantic have produced stark findings about the hidden cost of food production. For example, a landmark report by the Sustainable Food Trust (SFT)<\/a> –The Hidden Cost of UK Food<\/em>\u2013 showed that for every \u00a31 spent at the checkout, another \u00a31 is spent in hidden ways. Translated nationally, it means that UK consumers, who spend \u00a3120 billion on food in a year, also rack up a further \u00a3116 billion in environmental and health costs. These costs are not paid for by food and farming businesses, the SFT says, \u201cthey\u2019re passed on to the public though taxation, lost income due to ill health, and the price of mitigating and adapting to climate change and environmental degradation\u201d.<\/p>\n

Globally, the hidden social, environmental and health costs of agrifood systems could total as much was $12 trillion, according to 2020 research for the United Nations Food and Agriculture Organisation (FAO). And while the majority of these hidden cost are generated in high income countries, their greatest economic burden falls on low-income countries, where they can reach nearly a quarter of GDP1<\/sup>.<\/p>\n

True cost accounting is a powerful tool for food systems transformation<\/p><\/blockquote>\n

True cost<\/h3>\n

To assess both the negative and positive impacts of different types of food and farming systems, researchers talk about external costs, or externalities \u2013 meaning the costs that are not reflected in the market price. In recent years the concept of \u2018true cost accounting\u2019 \u2013 a holistic approach to measuring the real costs of a product or service \u2013 has increasingly been applied to food systems.<\/p>\n

The prospect of governments introducing taxation or incentive schemes to \u2018correct\u2019 distorted food prices may still be some way off, but a growing number of progressive businesses have been trialling true cost pricing in real world settings. For example, the Dutch retailer Albert Heijn last year launched a \u2018true pricing\u2019 trial in three of its To Go supermarkets. The three stores, all on university campuses, offered a range of products to shoppers priced at the \u2018normal price\u2019 and the \u2018true price\u2019. Albert Heijn worked with the Dutch environmental and social justice movement True Price<\/a> to determine the price difference, reflecting factors such as pollution and climate impacts, water use, soil protection, working conditions and discrimination. To give an example of how this worked in store, black coffee in Albert Heijn\u2019s caf\u00e9s would usually be \u20ac2.00. The true price was set at \u20ac2.08 for espresso, while for latte it was \u20ac0.36. For the same coffee with oat milk instead of cow\u2019s milk, the actual price was \u20ac0.11 higher.<\/p>\n

\"\u00ab\u2018cheap
123rfLimited\u00a9vadymvdrobot<\/figcaption><\/figure>\n

A broader and higher profile initiative was launched in late 2023 by the German retailer Penny, which it operated in all of its 2,150 stores. In the trial, Penny charged higher prices for nine staple food products for one week to highlight the environmental impact of food production.<\/p>\n

The retailer collaborated on the initiative with the Technical University of Nuremberg and the University of Greifswald. In the Penny trial the environmental impacts of conventional food products were directly compared with organic equivalents.<\/p>\n

The products in the trial were mainly dairy or meat items, but included one vegan schnitzel product. Information on the way the products had been \u2018re-priced\u2019 was clearly available at point of sale. This gave a product\u2019s normal current selling price, true cost premium, true cost mark-up percentage and the true cost selling price. The organic foods had environmental follow-up costs of an average of \u20ac1.15, the conventional ones \u20ac1.57 euros on average, and the vegan schnitzel 14 cents. In some instances the true price charged was nearly double that of the normal selling price. For example, a conventional cheese product (330g) increased in price from \u20ac2.49 to \u20ac4.84.<\/p>\n

Powerful tool for change<\/h4>\n

The Penny trial will have been watched closely by Europe\u2019s organic sector, which sees true cost accounting as a powerful tool for food systems transformation<\/a>.<\/p>\n

When a team of researchers at the University of Augsburg in Germany applied true cost accounting to both organic and conventional and adjusted prices accordingly2, they found striking differences. Looking at 22 different German agricultural products they found that on average, crop production generated externalities of about \u20ac0.79 per kg for conventional and about \u20ac0.42 for organic products. The difference is much smaller when dairy and meat products are compared, reflecting the heavy environmental impact of livestock farming across all systems.<\/p>\n

The Augsburg team said that while the true price of organic products is not necessarily lower than those of conventional products, there is an alignment of prices of the two production systems when the polluter pays principle is applied which significantly corrects current market distortions.<\/p>\n

These, and other studies, show the scale of the opportunity for organic when it is allowed to compete fairly with other systems.<\/p>\n

While the main thrust of true cost accounting to date has a been to reflect unaccounted for environmental costs in food production, a worsening global health crisis provides compelling reasons to incorporate human health consequences (including health care costs, societal impacts and lost productivity) into the equation.<\/p>\n

Transforming food systems<\/h4>\n

As we learn more about the damaging health impacts of consuming a diet high in ultra-processed foods (described by the British doctor Chris Van Tullekin as \u201cinherently violent to our bodies\u201d), the aim of the industrial food industry becomes ever clearer \u2013 to find better ways of extracting money from citizens, at whatever cost to health.<\/p>\n

True cost accounting is already being used successfully to tackle country-specific challenges. Adopted globally it could transform our food systems by advantaging organic and agroecological approaches that bring positive impacts to the environment, while also helping to cut our dangerous addiction to obesogenic ultra-processed foods. It also demonstrates that the point made by the chef and food campaigner Jamie Oliver, that \u201cthe price of organic is the right price\u201d.<\/p>\n

    \n
  1. The State of Food and Agriculture 2023. Food and Agriculture Organization of the United Nations<\/span><\/li>\n
  2. True cost accounting of organic and conventional food production. 2023. Journal of Cleaner Production<\/span><\/li>\n<\/ol>\n

    Author:\u00a0<\/strong>Jim Manson, Journalist<\/p>\n

    Subscribe<\/a>\u00a0to Bio Eco Actual Newsletter and be up to date with the latest news from the Organic Sector<\/strong><\/p>\n

    Bio Eco Actual<\/strong>, International Organic Newspaper
    \n<\/em>    Read Bio Eco Actual<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    The hidden cost of cheap food is finally being exposed, helping organic to compete more fairly. Why it is that food that makes us sick and is disproportionately damaging to the climate and environment is so cheap? It’s an important question, and one that a lot of powerful organisations and businesses would prefer that we […]<\/p>\n","protected":false},"author":419,"featured_media":85968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8357,5210],"tags":[],"class_list":["post-85973","post","type-post","status-publish","format-standard","has-post-thumbnail","category-industry-news","category-latest-organic-news"],"yoast_head":"\nCounting the hidden cost of \u00abcheap food\u00bb - Bio Eco Actual<\/title>\n<meta name=\"description\" content=\"The hidden cost of \u00abcheap food\u00bb is a dark secret that the industrial food industry would really like to keep that way.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bioecoactual.com\/en\/2024\/01\/10\/counting-the-hidden-cost-of-cheap-food\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Counting the hidden cost of \u00abcheap food\u00bb\" \/>\n<meta property=\"og:description\" content=\"The hidden cost of \u00abcheap food\u00bb is a dark secret that the industrial food industry would really like to keep that way.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bioecoactual.com\/en\/2024\/01\/10\/counting-the-hidden-cost-of-cheap-food\/\" \/>\n<meta property=\"og:site_name\" content=\"Bio Eco Actual\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/BioEcoActual\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-10T07:57:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-12T07:09:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bioecoactual.com\/wp-content\/uploads\/2024\/01\/supermercado-londres.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bio Eco Actual\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@bioecoactual\" \/>\n<meta name=\"twitter:site\" content=\"@bioecoactual\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bio Eco Actual\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/en\\\/2024\\\/01\\\/10\\\/counting-the-hidden-cost-of-cheap-food\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/en\\\/2024\\\/01\\\/10\\\/counting-the-hidden-cost-of-cheap-food\\\/\"},\"author\":{\"name\":\"Bio Eco Actual\",\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/#\\\/schema\\\/person\\\/43c1f0817cbc73f37ce66f2978084ceb\"},\"headline\":\"Counting the hidden cost of \u00abcheap food\u00bb\",\"datePublished\":\"2024-01-10T07:57:50+00:00\",\"dateModified\":\"2024-08-12T07:09:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/en\\\/2024\\\/01\\\/10\\\/counting-the-hidden-cost-of-cheap-food\\\/\"},\"wordCount\":1229,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/en\\\/2024\\\/01\\\/10\\\/counting-the-hidden-cost-of-cheap-food\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bioecoactual.com\\\/wp-content\\\/uploads\\\/2024\\\/01\\\/supermercado-londres.jpg\",\"articleSection\":[\"Industry News\",\"Latest Organic News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bioecoactual.com\\\/en\\\/2024\\\/01\\\/10\\\/counting-the-hidden-cost-of-cheap-food\\\/\",\"url\":\"https:\\\/\\\/www.bioecoactual.com\\\/en\\\/2024\\\/01\\\/10\\\/counting-the-hidden-cost-of-cheap-food\\\/\",\"name\":\"Counting the hidden cost of \u00abcheap food\u00bb - 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