Moving Towards a Sustainable Swiss Food System: An Estimation of the True Cost of Food in Switzerland and Implications for Stakeholders

Abstract

Whilst the benefits of food production and consumption are unarguably large, scientific consensus on the need for food system transformation is increasing. The global food system is one of the main contributors to climate change, biodiversity and ecosystem service loss, human health and animal welfare issues, as well as to insufficient livelihood conditions along the entire food supply chain. Creating a common, transparent standard for identifying food system impacts, their measurement and cost to society is key for the transformation towards a sustainable and resilient food system. By proposing a concrete methodology to calculate the true cost of food and applying it to Switzerland, this thesis aims to contribute to the discussion and highlight its importance. The methodology defined assesses food system impacts on natural resources, livelihoods, human health, economy and animal welfare. 100 externalities were collected across all of these areas, of which 28 were prioritized based on their relevance and feasibility to be quantified. The true cost of (i) the national Swiss food system and (ii) eight conventionally produced Swiss products (apple, potato, carrot, wheat, milk, cheese, chicken and beef) is then approximated based on the prioritized externalities. This results in (i) national level external costs of 0.87 (0.61 - 1.12) CHF per CHF spent. Total national level costs amount to 70 (60 - 79) billion CHF, i.e. the sum of 37 billion CHF of national food expenditure and 33 (23-42) billion CHF of external costs. The latter are driven by human health, (14.8 billion CHF) and biodiversity (10.4 billion CHF) costs, with livelihood costs underestimated due to limited data availability. On a product level (ii), based only on environment, biodiversity and human health costs, cheese, chicken, and beef cause the highest external costs: 0.20 CHF (53% higher than retail price), 0.49 CHF (+38%) and 2.14 CHF (+125%) per 100 kcal, respectively. The results illustrate the urgency of Swiss food system transformation. This is evident despite an underestimation of true costs by focusing on only 28 externalities, limited data availability and data accessibility. Swiss food system stakeholders are called to design a food system where sustainable choices are facilitated and incentivized along the entire supply chain. Based on both a transparent standard for measuring food system impacts and focusing on increasing consumer awareness, two things in particular should be strived for. First, reducing external costs of the current food system, e.g. by reducing food waste. Second – more crucially –, reducing external costs by shifting current production and consumption patterns. This includes redirecting agricultural support from products with high external costs, such as intensively farmed beef, to products with low external costs. In 2021, the United Nations will host a Food Systems Summit targeting food system transformation. Switzerland could play a key role in this transformation by co-creating an improved methodology for measuring food system impacts with all relevant stakeholders. Food system transformation, based on measurable and transparent targets, both in terms of food system costs and benefits, represents an unmissable opportunity for achieving sustainable development, and now is the time to take it.