Beyond the Price Tag: True Costs in the Food and Agricultural System
At a recent webinar, experts from various fields discussed the current state of true cost accounting, its challenges, and ongoing initiatives aimed at integrating this comprehensive approach into food systems. The event was hosted by the World Food System Center and the Swiss Society for Agricultural Economics and Sociology.
True cost accounting is an approach that has been extensively discussed and highlighted in research and among policymakers. It seeks to reveal the real costs and benefits of food production beyond the market price. Traditional accounting methods often overlook the hidden environmental, social, and health impacts associated with food production and consumption. True cost accounting aims to provide a more comprehensive picture by including these externalities in the cost analysis. A particular challenge is the labeling of true costs. Effective true cost labeling must be consistent, actionable, and accessible for informed consumer decisions.
At a recent webinar, three expert speakers from research, agencies, and industry explored the status quo of true cost accounting development and implementation, showcasing ongoing initiatives.
Emilia Schmitt, a Scientific Researcher at the Enterprise for Society Center (E4S), presented challenges and early insights from the application of true cost accounting in Switzerland. external page The True Cost CH research consortium identified reaching a common understanding of the framework and of the various methods and the selection of data sources, scope and monetization factors, as the main hurdles to overcome. For the remaining project, they are working on solutions to these hurdles so that true cost accounting can be successfully implemented by actors in Switzerland.
Andrea Cattaneo, a Senior Economist at FAO, shared his perspectives on value-driven transformation in food systems and discussed the global scientific discourse on true costs and steps for effective policy implementation. He sees true cost accounting as a valuable tool to enable informed decisions for various stakeholders in the food system, moving closer to more sustainable production and consumption patterns.
Claire van den Broek, Managing Director at True Price, shared her experiences of putting true cost accounting into practice. True Price developed a true cost accounting method together with Wageningen University and is applying true cost labeling in various stores and restaurants in the Netherlands. The number of points of sale with true cost labeled products is expected to reach 150 in 2025.
In the subsequent Q&A session, more than 100 online participants engaged in lively discussions with the experts.
We thank the three experts for joining us and sharing their perspectives. We also thank the Swiss Society for Agricultural Economics and Agricultural Sociology (SGA) for jointly organizing the event with us.
