The current methods of food production, consumption and land use systems need a serious transformation as they incur ‘hidden’ environmental, health and poverty costs estimated at almost $12 trillion a year, according to a new report.

These hidden costs can cause irreversible damage to key ecosystems, fundamentally undermine food security in certain regions and increase public health costs, revealed the report published by the Food and Land Use Coalition (FOLU), a collaboration of food, farming and green research groups.

Key findings

If timely action is not taken, the costs will rise to more than $16 trillion a year by 2050, the report warned. It will also put the United Nations-mandated Sustainable Development Goals (SDGs) and Paris Agreement climate targets out of reach.

This can further unleash food scarcity, disrupt markets and cause political instability, particularly in poor countries, and greatly affect women and children.

Food and land use systems are defined as the way “land is used, food is produced, stored, packed, processed, traded, distributed, marketed, consumed and disposed of”.

These are the leading sources of greenhouse gas emissions (up to 30 per cent) driving climate change, according to the report.

They are responsible for the degradation of the world’s tropical forests, grasslands, wetlands and other remaining natural habitats. They are also the leading cause behind the ongoing “sixth extinction” of biodiversity.

Global farm subsidies - more than $1 million per minute - are triggering climate crisis and destruction of wildlife, while just 1 per cent of the $700 billion a year given to farmers is used to benefit the environment, the analysis found. Much of the total is, instead, used to promote high-emission cattle production, forest destruction and pollution from overuse of fertilisers.

The current food systems are also driving widespread malnutrition, besides directly impacting public health, the report noted.

Malnutrition leads to the largest hidden costs: Today, one-third of the world’s population is malnourished; by 2030, it is expected to rise up to 50 per cent.

Since 2014, undernourishment has been rising and more than 820 million people are suffering from hunger. The most affected are in Asia and sub-Saharan Africa. Climate-related extreme weather, conflict and economic slowdown are responsible for undernourishment.

Of the 740 million people living in extreme poverty (with less than $1.90 a day purchasing power parity) two-thirds are agricultural workers and their dependents. This indicates that the world is not on track to eradicate poverty by 2030 (SDG 1).

The report proposes a reform agenda - centred around 10 critical transitions - of real actionable solutions…

* Healthy diets

* Productive and regenerative agriculture

* A healthy and productive ocean

* Protecting and restoring nature

* Diversifying protein supply

* Reducing food loss and waste

* Local loops and linkages

* Harnessing the digital revolution

* Stronger rural livelihoods

* Gender and demography