Experts Propose a Pathway Toward Sustainable Food System Transformation

The food system is woven into the social, economic, environmental, and cultural aspects of our society. However, unsustainable practices within the food value chains have negative impacts on people and the planet. A recent report by the Food System Economics Commission looks into the economics of food system transformation.

Cost of Unsustainable Practices

Published by the Food System Economics Commission, The Economics of the Food System Transformation report explores the challenges and opportunities for a sustainable global food system transformation. The report stated that the total cost of the current unsustainable food system reached an estimated 15 trillion USD a year.

The highest estimated cost comes from the health sector, with at least 11 trillion USD. Unhygienic food production, growing consumption of ultra-processed food, unequal distribution, and high prices contribute to the prevalence of health problems such as malnutrition, obesity, and diabetes.

Meanwhile, the environmental costs are estimated at 3 trillion USD. Unsustainable agricultural land use is one of the main drivers of deforestation, biodiversity loss, and other ecological damages. In the context of climate change, global food production, including food loss and waste, is estimated to contribute to at least one-third of the world’s greenhouse gas emissions. The growing demand for animal-sourced products can also increase the pressure on the environment.

The Food System Transformation Pathway

As the global population grows, all key actors across food value chains are under pressure to provide inclusive, healthy, and sustainable food systems for all. Yet, the report shares that current policy commitments still largely focus on food affordability and fall short of addressing the environmental and health consequences of unsustainable practices across the value chain.

Through the report, the Food System Economics Commission proposes the Food System Transformation (FST) pathway for a global food system transformation. The pathway aims to achieve several points through specific measures:

• Consumption of healthy diets by all by eradicating undernutrition, stabilizing obesity rate, converging towards healthy diets, and halving food waste.
• Strong livelihoods throughout the food system by reducing trade barriers for crops and livestock, increasing wages in agriculture, and increasing employment through capital substitution.
• Protection of intact land and restoration of degraded land through emissions reduction from deforestation, land conservation, peatland rewetting, water conservation, and biodiversity offset.
• Environmentally sustainable production, including improving nitrogen use efficiency, incentivizing longer crop rotations, and reducing emissions from rice cultivation.

The FST pathway aims to reduce greenhouse gas emissions to limit global heating below 2°C by 2050, reverse biodiversity loss, and reduce nitrogen surpluses by half. In South and Southeast Asia, the pathway is projected to help 163 million people achieve healthy weight, eliminate 40.5 Gt carbon dioxide equivalent emissions, and reduce around 66% of annual nitrogen pollution, from 52 Mt to 34.4 Mt. Furthermore, the report estimated that the total economic benefits from food system transformation are equivalent to at least 5 trillion USD a year.

Broad & Systemic Change Needed

The report calls for broader transformation outside the food systems, particularly in energy transition. Furthermore, a systemic transformation of food systems must happen locally and nationally. Although the condition differs in each place, the report proposes five broad priorities to guide local and national policymakers:

• Shifting consumption patterns towards healthy diets, including imposing sugar taxes and regulating unhealthy food marketing.
• Repurposing government support for agriculture to incentivize choices that support the transformation goals.
• Targeting revenue from new taxes to support the food system transformation.
• Innovating to increase labor productivity and livelihood opportunities, especially for poorer workers in food systems.
• Scaling up safety nets to keep food affordable for the poorest.

Read the full report here.