State of Food and Agriculture (SOFA) 2024: FAO

Syllabus: GS3/Issues Relating To Poverty & Hunger

Context

• Recently, the Food and Agriculture Organisation (FAO) of the United Nations has released ‘The State of Food and Agriculture 2024’ (SOFA 2024).

About the State of Food and Agriculture (SOFA)

• It is an annual flagship report published by the FAO of the United Nations that provides in-depth analysis and insights into key issues affecting global food and agriculture systems.
• SOFA 2024 delves into the true cost of food, emphasising the need for agrifood systems to be more inclusive, resilient, and sustainable.
  • It builds on the findings of the 2023 report, exploring the use of true cost accounting to assess the economic, social, and environmental impacts of agrifood systems.
  • SOFA 2023 introduced the concept of hidden costs and benefits in agrifood systems, proposing true cost accounting as a method to reveal these hidden aspects.

Key Findings: The State of Food and Agriculture (SOFA) 2024

• True Cost Accounting: The report highlights the importance of true cost accounting in agrifood systems.
  • It helps to uncover the hidden costs and benefits associated with food production and consumption, including environmental degradation, health impacts, and social inequalities.
• Global Context: Overall, the hidden costs of agrifood systems amounted to approximately $12 trillion annually, the analysis involving 156 countries found.

• In fact, globally, the dominant quantified hidden costs were those arising from unhealthy dietary patterns that lead to diseases and lower labour productivity. 
• India’s hidden costs are the third largest globally, following China and the United States, which have hidden costs of $1.8 trillion and $1.4 trillion, respectively.

• Health-Related Costs: The health-related hidden costs, which include productivity losses due to dietary-related diseases, form a significant portion of the total.
  • These costs are estimated to be around $846 billion annually, reflecting the burden of disease and reduced labour productivity.
• Dietary Risks and Non-Communicable Diseases: Unhealthy diets are a major contributor to global hidden costs, accounting for approximately 70% ($8.1 trillion) of these costs.
  • The report underscores the link between dietary risks and non-communicable diseases, highlighting the need for healthier food environments.

• Economic, Social, and Environmental Impacts: Agrifood systems generate significant benefits for society but also have substantial negative impacts.
  • The report identifies these hidden costs, which include economic losses from market and policy failures, and emphasises the need for comprehensive assessments to inform policy decisions.
• Global Scenarios and Case Studies: The report presents global scenarios and case studies that offer insights into the desired outcomes of national agrifood systems.
  • These scenarios help to illustrate the potential pathways for achieving sustainable and equitable food systems.
• Role of Consumers and Producers: The report emphasises the critical role of both consumers and producers in transforming agrifood systems.
  • It calls for greater consumer awareness and engagement, as well as equitable roles for producers in the supply chain.

Key Recommendations (Policy Interventions for Transformation)

• Promoting Healthier Diets: Encouraging the consumption of whole grains, fruits, vegetables, and beneficial fatty acids while reducing the intake of processed foods and sugars can significantly lower health-related costs.
• Sustainable Agricultural Practices: Implementing sustainable farming practices can reduce environmental impacts, such as greenhouse gas emissions and nitrogen runoff, thereby lowering environmental hidden costs.
• Improving Social Equity: Addressing the socio-economic conditions of agri-food workers through fair wages and improved working conditions can help reduce social hidden costs.
• These include incentivising sustainable practices, improving institutional and fiscal capacities, and engaging stakeholders in the transformation process.

Conclusion

• The $1.3 trillion hidden cost of India’s agri-food systems, as revealed by the FAO report, highlights the urgent need for comprehensive reforms. 
• By promoting healthier diets, sustainable agricultural practices, and social equity, India can significantly reduce these hidden costs and pave the way for a healthier, more sustainable future.

Source: DTE