The True Value of Sustainable Foods
A growing body of evidence shows the disparity between the price we pay for food and the costs of production & consumption. Market prices do not reflect the environmental, social and health impacts of food products. At the Sustainable Foods Summit (www.sustainablefoodssummit.com), it will be shown how sustainable products have lower such impacts over conventional products. A recent true accounting study by EY (formerly Ernst & Young) showed that organic apples have lower impacts than conventional apples to the value of EUR 0.20 per kg. In terms of specific health impacts, the financial advantage of organic apples is EUR 0.14 per kg. There were similar findings for other organic fruits: pineapples, tomatoes, pears, bananas and citrus. Environmental costs of food production include pesticide use, waster & resource use, as well as their associated impacts on soil, pollution, and biodiversity. Organic foods have lower environmental costs because of their sustainable production methods. Farmer and producer payments, worker rights, land ownerships, and health considerations are some of the social costs associated with foods. Fairtrade certified products, such as coffee and tea, have lower social costs since some of these externalities are removed. Various studies show sustainable foods have lower impacts – or external costs – than conventional foods. Research by the social enterprise True Price found that sustainable cocoa beans grown in the Ivory Coast have 15 percent lower external costs than conventional beans. Another study showed that sustainable coffee in Vietnam has 20 percent lower external costs than conventional coffee. A growing number of companies are looking at the hidden environmental and social costs of their products. The trading firm EOSTA has used the true cost accounting approach to determine the external costs of its organic fruits & vegetables. These calculations are being used to demonstrate the environmental and health benefits […]