A new study reveals that nearly three-quarters of these largest hidden costs are caused by an excess of ultra-processed foods, sugars, and fats. This leads to obesity, non-communicable diseases, and losses in labor productivity.
According to the FAO report, the hidden costs in the global food industry are significantly higher than previously thought. The calculated cost in 154 countries represents nearly 10 percent of the global gross world product (GDP).
The hidden costs include health effects of poor nutrition, such as obesity and heart disease, which claim millions of lives annually and bring enormous economic consequences. The environmental impact of the food industry, such as deforestation, soil erosion, and climate change, also contributes substantially to these costs.
These losses are especially large in countries with high and upper-middle incomes. Of the total costs, one-fifth is related to the environment, including emissions of nitrogen and greenhouse gases, land use changes, and water usage. The hidden costs associated with poverty and malnutrition are greatest in low-income countries.
The report calls for an urgent reconsideration of the current food system and stresses that the impact of the food industry is not limited to economic considerations.