CSIRO report on the hidden costs of Australia’s food system

A new CSIRO report Towards a state of the food system report for Australia (link) estimates the hidden costs of Australia's food system range from $98 billion to $274 billion in net present value terms, making it the highest per capita globally.

These hidden costs include environmental impacts (greenhouse gas emissions, pollution, land-use change, biodiversity loss) and health impacts (non-communicable diseases from unhealthy diets). ​ Environmental costs account for 35-82% of the total, while health costs contribute 18-65%. ​ 

CSIRO highlights challenges such as the lack of accounting for these hidden costs in economic measures, the burden of costs on Australians due to food exports, and the difficulty in estimating and addressing these impacts. The report emphasizes the need for True Cost Accounting (TCA), and an FAO-endorsed method to quantify and manage these non-market impacts - which include social, environmental, and health costs. 

Opportunities include using TCA to avoid and manage hidden costs, which could increase the future value of Australia's food system and ensure access to global markets sensitive to true costs. ​ Addressing these costs through sustainability policies can lead to economic growth, environmental benefits, improved health, and social equity.

The report calls for government leadership to reorient food systems, improve data collection, and develop tailored cost estimates for Australia's unique context. ​ Proactive measures to manage hidden costs are seen as essential for a sustainable and equitable future.