The costs related to health represent a significant part of the hidden costs of the EU's agri-food system, stated an official from the Food and Agriculture Organization (FAO) for Euractiv, while presenting the results of the agency's latest report on this topic.

82%

"When people think about the hidden costs of agri-food systems, they often think about environmental costs," said FAO senior economist Andrea Cattaneo.

However, a report led by Cattaneo found that in Europe alone, 82% of the hidden costs in agri-food systems are due to unhealthy diets leading to lower labor productivity.

The consequences of unhealthy diets include public and private costs to deal with non-communicable diseases (NCDs) such as cardiovascular diseases, cancer, diabetes, and chronic respiratory diseases.

"The costs to health are quite significant in Europe, as they are calculated based on lost labor days," said Andrea. "With relatively high wages, this has a greater impact in terms of dollars," he added.

The report was welcomed by civil society organizations such as the European Consumer Organization (BEUC), which have always emphasized the significant impact of unhealthy diets on health and well-being.

"For the first time, this FAO report puts figures on the huge costs [of unhealthy diets] for our economies," said Camille Perrin, senior policy officer at BEUC, to Euractiv.

According to her, supporting policies that make healthy choices easy and accessible for consumers "should therefore be a straightforward idea."

Farm to Fork Strategy

Both the Farm to Fork strategy and the EU's cancer plan, two emblematic initiatives of the European Commission, have offered initiatives to facilitate the promotion of healthy diets.

However, one of the main provisions initially scheduled by the EU executive, reforming the information framework to facilitate the choice of healthy food products, has been repeatedly postponed and will not see the light of day in this legislative term.

In its report, FAO acknowledged that marketing, labeling, and certification of food are "vital" to influence consumer behavior.

A BEUC survey in 2020 found that over half of EU consumers are influenced by environmental concerns, and two-thirds are willing to change their eating habits accordingly, but they lack information to do so.

EU consumers are open to exploring more sustainable diets, but lack information to do so

EU consumers are influenced by environmental concerns and are willing to change their eating habits accordingly, but the lack of information, high prices, and limited availability of sustainable foods still stand in the way, according to a new survey by the European Consumer Organization, BEUC.

Hidden cost escalation will be on the health side

FAO expects global hidden costs to reach $13.2 trillion by 2023. The figure for 2016 was nearly $12.2 trillion, representing an increase of one trillion over a seven-year period.

According to Cattaneo, the majority of the increase in quantified damages will be on the health side.

"It's essentially about implementing [environmental and health] objectives," he said, adding that "while ensuring that food costs do not rise, especially for the more vulnerable parts of the population."

The FAO report encourages decision-makers to use "price incentives or disincentives to stimulate the production of sustainable and nutritious foods."

"If improving public health and people's well-being is not a strong enough driver for decision-makers," said BEUC's Perrin, "we hope that the economic arguments for healthy diets will convince them to act." The FAO report also warns that the current issue with unhealthy diets "should not divert attention from the hidden environmental and social costs."

Environmental damages in Europe, including greenhouse gas emissions (GHGs) and nitrogen, blue water use, and ecosystem degradation, are estimated at $500 billion.

However, the real cost is almost certainly higher, as factors such as pesticide exposure and land degradation were not included in the research, the report states.

Slovakia, Hungary, and Poland are the EU countries with the highest quantified hidden costs relative to the value of their agri-food production, according to the report. (Photo: Freepik)