Agriculture stands as a cornerstone of the global economy, wielding significant impact on various fronts.
From 2000 to 2019, the global value added in agriculture, forestry, and fisheries surged by 73% in real terms, soaring to $3.5 trillion in 2019.
This growth signifies the sector's pivotal role in driving economic prosperity worldwide. Additionally, agriculture plays a crucial role in employment, with 874 million people engaged in agricultural activities in 2020, constituting 27% of the global labor force.
In terms of production, the total output of major crops experienced a remarkable 53% increase between 2000 and 2019, culminating in a record-breaking 9.4 billion tons in 2019. Among these crops, sugarcane, maize, wheat, and rice collectively contribute to half of the global major crop production, underscoring their significance in sustaining food security on a global scale.
Despite the surge in food production, the global prevalence of undernourishment witnessed an alarming uptick between 2019 and 2020, coinciding with the onset of the COVID-19 pandemic.
Nearly 10% of the world's population grappled with hunger in 2020, a substantial increase from 8.4% in 2019. This underscores the pressing need to address food insecurity and ensure equitable access to nutritious food for all.
Moreover, the pursuit of agricultural growth has come at an environmental cost. Between 2000 and 2019, the global forest area dwindled by 94 million hectares, equivalent to the landmass of the United Republic of Tanzania.
Notably, nearly all countries in the Near East and North Africa grapple with water stress levels nearing or surpassing 100%.
Furthermore, while greenhouse gas (GHG) emissions from agricultural land witnessed a marginal 2% decline during the same period, overall GHG emissions from agricultural production surged by 11%, with livestock accounting for approximately 55% of this increase.
The State of Food and Agriculture 2023 report, recently released by the Food and Agriculture Organization of the United Nations (FAO), sheds light on the hidden costs associated with the current agri-food system.
According to the report, these hidden costs, encompassing impacts on human health, the environment, and society, amount to a staggering $10 trillion per year, nearly 10% of global gross domestic product (GDP). This groundbreaking analysis underscores the urgent need for a paradigm shift in how we perceive and account for the true costs of agricultural production.
To address these challenges, the report advocates for concerted efforts from governments and the private sector. It emphasizes the importance of recognizing and analyzing the hidden costs of the agri-food system thoroughly.
FAO Director-General Qu Dongyu underscores the imperative of recognizing the contributions of food producers across all scales and understanding the multifaceted impacts of agricultural practices.
He calls for collective action from policymakers, the private sector, researchers, consumers, and other stakeholders to drive transformative change in agrifood systems and enhance global well-being.
The report highlights the substantial hidden costs stemming from unhealthy diets, accounting for over 70% of total hidden costs. Unhealthy dietary patterns, characterized by excessive consumption of ultra-processed foods high in fat and sugar, contribute to obesity and non-communicable diseases, resulting in lost labor productivity and escalating healthcare costs.
Environmental degradation incurs significant hidden costs, with greenhouse gas and nitrogen emissions, land-use change, and water utilization representing one-fifth of global hidden costs. Although this issue affects all countries, limited data may underestimate its true scale and impact.
