{"id":15572,"date":"2025-05-06T20:44:52","date_gmt":"2025-05-06T18:44:52","guid":{"rendered":"https:\/\/www.crowdfarming.com\/sin-categoria\/the-true-cost-of-food-why-cheap-doesnt-mean-fair\/"},"modified":"2025-12-19T14:10:59","modified_gmt":"2025-12-19T13:10:59","slug":"the-true-cost-of-food-why-cheap-doesnt-mean-fair","status":"publish","type":"post","link":"https:\/\/www.crowdfarming.com\/what-the-field\/society\/the-true-cost-of-food-why-cheap-doesnt-mean-fair\/","title":{"rendered":"The True Cost of food: Why cheap doesn\u2019t mean fair"},"content":{"rendered":"\n<p>When we shop for food, we often think in terms of bargains. Lower prices seem like a win (for our wallets, at least). But this illusion of \u201ccheap\u201d food comes at a high cost. We spoke about this on our <a href=\"https:\/\/whatthefield.buzzsprout.com\/1968536\/episodes\/16944168-real-or-fake-price-tag-a-deep-dive-into-the-true-cost-of-food-with-pietro-galgani\">podcast episode featuring Pietro Galliani<\/a> from the <a href=\"https:\/\/www.impactinstitute.com\/\">Impact Institute<\/a> and <a href=\"https:\/\/trueprice.org\/\">True Price<\/a>, the food system is riddled with hidden costs that most consumers never see, but all of us ultimately pay.<br><br><\/p>\n\n\n\n<p>Welcome to the world of True Cost Accounting, where numbers tell a much deeper\u2014and sometimes uncomfortable\u2014story.<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What are the hidden costs of food?<\/strong><br><\/h3>\n\n\n\n<p>The price at the supermarket doesn&#8217;t reflect the full journey of our food, nor its impact on the environment, human health, and social well-being. These are what economists call <strong>externalities<\/strong>\u2014costs that are real but not included in the market price.<br><br><\/p>\n\n\n\n<p>As Pietro puts it: <em>\u201cAll these aspects can be seen as hidden costs that someone else is paying. Some costs are ones that we already pay, like cleaning water from fertiliser residues. Some, our children will pay, like climate change. Others are paid by people working in the supply chain who live below a decent standard of living.\u201d<\/em><br><br><\/p>\n\n\n\n<p>According to the United Nations, the <a href=\"https:\/\/www.unfoodsystemshub.org\/fs-summit-legacy\/food-systems-summit-compendium\/chapter-2-levers-of-change\/true-value-of-food\/en\"><strong>global food system generates nearly $19.8 trillion in hidden costs every year<\/strong><\/a>\u2014that\u2019s more than double the $9 trillion spent on food itself. These include:<br><br><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>$7 trillion<\/strong> in environmental costs<br><\/li><li><strong>$11 trillion<\/strong> in health-related costs<br><\/li><li><strong>$1 trillion<\/strong> in productivity and inequality-related costs<br><br><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Making the invisible visible: The role of True Pricing<\/strong><br><\/h3>\n\n\n\n<p>True Cost Accounting (TCA) is a tool developed to reveal and eventually reduce these hidden costs.<br><br><\/p>\n\n\n\n<p>Pietro explains: <em>\u201cThe true price is the sum of the normal price we pay, plus the hidden environmental and social costs. But our goal is not to make people pay more. It&#8217;s to make these costs visible so we can reduce them.\u201d<\/em><br><br><\/p>\n\n\n\n<p>For example, a kilo of bananas may cost \u20ac1.50 at the store, but its <strong>\u201ctrue price\u201d could be \u20ac2.00 or more<\/strong> when you include water use, land degradation, and unfair labour practices. A 2023 pilot in Germany by PENNY supermarkets displayed these true prices, showing that cheese priced at \u20ac2.49 had a true cost of \u20ac4.84, and apples priced at \u20ac1.99 had a true cost of \u20ac3.69.<br><br><br><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.crowdfarming.com\/what-the-field\/wp-content\/uploads\/2025\/12\/BP-TRUE-PRICE-BOSY-IMAGE-1.jpg\" alt=\"\" class=\"wp-image-26550\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><br><strong>Who pays the gap\u2014and who should?<\/strong><br><\/h3>\n\n\n\n<p>True Price&#8217;s methodology is not about guilt\u2014it\u2019s about awareness and transformation. It proposes a three-step vision:<br><br><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Make hidden costs visible<\/strong>\u2014so consumers and companies can make informed decisions.<br><\/li><li><strong>Foster voluntary actions<\/strong>\u2014such as consumers choosing to pay the true price or companies investing in impact reduction, and, therefore, reducing that true price gap.<br><\/li><li><strong>Systemic change<\/strong>\u2014so the good practices become the norm and the market rules reward, rather than penalise, these practices by making positive impact products more accessible.<br><br><\/li><\/ol>\n\n\n\n<p>But during our conversation with Pietro, we were curious about \u201cHow do we ensure this extra money actually goes to where it needs to go? Not just another marketing campaign?\u201d<br><br><\/p>\n\n\n\n<p>The answer lies in commitment and accountability. Pietro highlights that the most successful initiatives work through multi-year programs, transparent tracking of fund allocation, and direct collaboration across the supply chain\u2014from supermarkets to banana cooperatives in the Dominican Republic and Peru.<br><br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A fairer food system: Rethinking value distribution<\/strong><br><br><\/h2>\n\n\n\n<p>True pricing also challenges us to rethink how value is shared across the food system. In many cases, farmers receive the smallest share of the final retail price, despite carrying the greatest risk and doing the most essential work.<br><br><\/p>\n\n\n\n<p>Initiatives like<a href=\"https:\/\/cestquilepatron.com\/\"> &#8220;C\u2019est qui le Patron ?!&#8221; <\/a>give consumers full visibility and a participatory role in how much farmers should earn and how food should be produced. Transparency here is key\u2014not only in how much we pay, but in who gets paid what. On the moment of purchasing, we are given the information on how much the farmer receives of the total price.\u00a0<br><br><\/p>\n\n\n\n<p>At CrowdFarming, we believe in this principle. Direct sales not only ensure farmers receive a fairer share, but also reconnect people with the origin of their food, the realities of agriculture, and the <a href=\"https:\/\/www.crowdfarming.com\/blog\/en\/price-transparency-how-much-does-the-farmer-get-paid\/\">costs involved in getting food from the field to your table.&nbsp;<\/a><br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The limits of True Pricing: Do we just add costs?<\/strong><br><\/h3>\n\n\n\n<p>While True Price brings essential clarity, there\u2019s a larger systemic question we must ask: <strong>Should we simply add these hidden costs on top of an already opaque and uneven price structure?<\/strong><br><br><\/p>\n\n\n\n<p>As discussed in the podcast: \u201cWe take the market price for granted, and then we look at what\u2019s going wrong on top of it\u2026 but we don\u2019t look at who is profiting and how the value is distributed.\u201d<br><br><\/p>\n\n\n\n<p>In an ideal world, we wouldn\u2019t just add hidden costs on top\u2014we\u2019d look into the breakdown of the existing price and make structural changes. Why should consumers shoulder the burden while powerful actors in the food system maintain their profit margins? Transparency must include value distribution, not just externality accounting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When we shop for food, we often think in terms of bargains. Lower prices seem like a win (for our wallets, at least). But this illusion of \u201ccheap\u201d food comes at a high cost. We spoke about this on our podcast episode featuring Pietro Galliani from the Impact Institute and True Price, the food system [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":15574,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[15],"tags":[480,455,311,247,86,93,51],"class_list":["post-15572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-society","tag-true-price","tag-hidden-costs","tag-organic","tag-sustainability","tag-organic-farming","tag-regenerative-agriculture","tag-crowdfarming"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The True Cost of food: Why cheap doesn\u2019t mean fair - WTF<\/title>\n<meta name=\"description\" content=\"When we shop for food, we often think in terms of bargains. 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