Poor dietary habits impose hidden health costs that exceed $8 trillion each year, according to the United Nations Food and Agriculture Organization (FAO), which has called for “urgent action” to transform global agricultural and food systems.
The FAO’s annual report reveals that these hidden costs, amounting to $8.1 trillion, arise from productivity losses due to diseases linked to unhealthy diets, such as diabetes, cancer, and cardiovascular diseases.
These hidden costs add substantially to the known health expenses, including direct medical costs, effectively doubling the true health bill of poor dietary habits.
Dr David Laborde, Director of Agricultural Economics at FAO, explained that describing this cost as “doubling” is a reasonable estimation of its magnitude.
Unhealthy diets’ health impacts account for 70% of the hidden costs associated with food production, which also includes environmental and social expenses. Half of these health costs stem from diets low in whole grains and high in refined products (a trend widespread globally except in parts of Africa and India), as well as low fruit consumption and high salt intake. Diets high in processed meats, red meat, and low in vegetables also contribute significantly.
The report, covering 153 countries and 99% of the global population, notes that this hidden burden varies by country but can reach 10% of GDP, particularly in some emerging economies. This estimate is considered conservative, as it does not account for undernutrition—a costly issue in itself, according to the FAO.
Among the steps recommended by the FAO are “more ambitious national commitments,” with roles for everyone from producers to consumers.
Escaping the “Deadlock”
The FAO cautions against placing the burden of change solely on farmers, who are often “on the front lines.” The report points out that increasingly globalised supply chains and imbalances of power often place the weight of these changes on vulnerable groups like producers, who face rising regulatory costs and price pressures.
Laborde noted that these health costs are “hidden from society, so no one notices, and thus no one truly wants to address the problem.” He stressed the need to “break out of the current deadlock, as consumers do not want to pay more, healthcare providers are unwilling to cover costs, and governments say they lack funds.”
This often results in passing these costs onto farmers, who face difficult working conditions, leading to demonstrations such as those seen across Europe last winter and ultimately deterring new people from entering the agricultural sector.
The report suggests providing farmers with access to technology and compensation for their eco-friendly services. Certifications for organic and fair trade practices are tools to help improve incomes, and “agribusinesses and investors also have a key role to play.”
Moreover, consumers are “the final but essential piece” in promoting change by choosing healthy, sustainably produced foods.
The report argues that “financial incentives, media campaigns, and legislation can drive change, particularly for the most vulnerable households,” noting that many populations face the dual burden of undernutrition alongside obesity or diet-related illnesses.
The FAO also found that taxes on sugary drinks or subsidies for fruits and vegetables lead to “positive outcomes.” While the international community hopes that innovation will address agricultural food system issues, the FAO emphasised that “innovation alone may not secure sustainability without policy reforms.”
