Discover the Evolution of True Cost Accounting: Unlocking Greater Financial Insights for Your Business

Last month, we had the joy of participating in the 2025 True Cost Accounting Accelerator Summit in Rome. This event, hosted by the U.N. Food and Agriculture Organization, focused on understanding the hidden costs of our food systems.

True Cost Accounting (TCA) is an essential tool. It helps us see the real trade-offs in food production and consumption. Food isn’t just about what’s on our plates; it’s about the entire system—health, environment, and society.

The summit gathered leaders from various sectors to discuss how TCA can transform food systems by 2030, in line with global sustainability goals. It’s inspiring to note how progress has been made since 2015 when 150 scientists from 33 countries came together to develop initiatives like The Economics of Ecosystems and Biodiversity for Agriculture and Food.

However, we must remember that the cheap price of food often hides deeper issues. The FAO reports that the world’s food system incurs hidden costs of around $11.6 trillion each year. Much of this relates to health problems caused by unhealthy diets. In fact, 70% of these costs stem from health issues linked to cheap, processed food.

Cheap food might seem appealing, but it comes at a cost. It’s a key driver of both health issues and environmental damage. Agriculture alone produces 30% of greenhouse gas emissions, and many people suffer from hunger or can’t afford healthy food.

Shifting our focus from individual choices to systemic solutions is crucial. We must examine how policies and resources shape the food landscape, enabling better decisions for communities.

The recent summit raised several critical points for moving TCA forward:

1. From Ideas to Action: There’s a strong consensus that we need to implement TCA frameworks rather than just discussing them. For example, a recent study in Andhra Pradesh, India, showed that natural farming methods can boost crop yields and income for farmers. This is a promising model for more sustainable practices.

2. Valuing Nature and People: Some critics argue against placing a monetary value on the benefits and harms in food systems. However, this approach can make it easier for decision-makers to understand the implications of their choices. For example, a TCA study in Zambia highlighted the significant annual savings generated by sustainable practices.

3. Diverse Data Matters: Effective TCA relies on robust data. It’s essential to consider not just numbers but also the knowledge of farmers and community organizations. A narrow focus on data can overlook vital perspectives.

4. Rethinking Food Prices: Many fear that TCA will lead to higher food prices. However, it’s about redesigning the food system to prioritize healthy, accessible options without unfairly burdening consumers.

As we face a world where climate and health concerns are growing, there are success stories to draw from. Efforts to grow and consume food sustainably can provide benefits for everyone.

In the words of Eric Schlosser, author of Fast Food Nation, a true cost analysis is a practical tool that can help create meaningful change.

For more insights, visit the FAO’s State of Food and Agriculture reports that place TCA at the forefront of policy discussions.

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