First national food system stocktake reveals $274b hidden costs

CSIRO has released Australia’s first comprehensive stocktake of the nation’s $800 billion food system, revealing hidden costs of up to $274 billion annually and calling for a coordinated approach to managing complex challenges across the sector.

The report, released on Monday through the Food System Horizons initiative, examined Australia’s food system which feeds approximately 100 million people globally, including 27 million Australians, with food produced by around 100,000 farmers.

The study found Australia has the highest per capita hidden food system costs in the world, primarily from environmental and health impacts not reflected in market prices. These costs include diet-related diseases, environmental degradation and resource depletion.

CSIRO Agriculture and Food Director Dr Michael Robertson said the stocktake provides critical evidence for addressing challenges facing the food system.

“Our food system is more than just producing and exporting commodities – it’s also about providing equitable access to safe, nutritious and healthy food, produced sustainably for all Australians,” Dr Robertson said.

The report highlighted significant concerns including that almost one-third of Australian households experience moderate or severe food insecurity annually, and fewer than five per cent of Australians consume fruit and vegetables consistent with dietary guidelines.

CSIRO Sustainability Research Director Larelle McMillan said food policy in Australia is fragmented across portfolios including agriculture, environment, industry, social services, health, transport and urban planning.

“We need to move from analysing specific parts of the food system, to establishing coordinated reporting for important food system attributes and interactions,” McMillan said.

The report identified three key steps for transformation: recognising the food system as an integrated whole, navigating responsibility across government and industry, and enabling interactions across disconnected parts of the system.

While Australia’s food system generates more than $800 billion annually and provides significant regional employment, the research suggests coordinated reporting and management could better address sustainability, nutrition and equity goals alongside economic objectives.

Pictures: credit CSIRO