Cheaper food comes with other costs – why cutting GST isn’t the answer
–Allan Renwick, Professor of Agricultural Economics, Lincoln University, New Zealand. As New Zealand considers the removal of the goods and services tax (GST) from food to reduce costs for low income households, advocates need to consider the impact cheap food has on the environment and whether there are better options to help struggling families. Globally, we have become used to an abundant, season defying food supply. For decades, the price of our food was on a sustained downward trajectory before prices began to rise again in the mid-2000s. In many developed countries the proportion of income that we spend on food has declined to around 10%. However, the price we have been paying for our food does not represent its true cost to the planet and to our health. Nowhere is this more obvious than in New Zealand. We have the third highest adult obesity rate in the OECD, at an estimated cost of NZ$2 billion in healthcare services each year. Our agricultural sector accounts for nearly half of our greenhouse gas emissions, and has been associated with declining water quality and biodiversity loss. The issue is that many of these costs don’t just come from the food we eat, but also from the food that is lost or wasted. The cost of waste Globally, it’s estimated between 20% and 40% of food is lost or wasted each year and New Zealand is just as guilty as other countries. Food loss occurs throughout the supply chain due to factors such as harvest losses and poor storage. It mainly occurs in developing economies. Food waste occurs at the point of sale (retailing or food service, for example) and in the home, and is more of an issue in developed economies. All this lost and wasted food is a serious environmental issue. If food loss and waste was a country it would be the third largest global […]