True Cost Accounting: revealing the real cost of food
About this expertise
In short- Impact in monetary terms
- Covers 4 impact domains
- Assesses full supply chain
- Widely applicable
- Demonstrates sustainability impacts
Food prices don’t tell the full story. Many social and environmental costs and benefits, such as those related to climate, biodiversity, animal welfare, and public health, remain hidden. True Cost Accounting (TCA) makes these impacts visible in monetary terms, enabling better comparisons, smarter decisions, and more effective sustainability strategies.
Comprehensive view across the entire food supply chain
TCA measures the impact of food across four domains: nature, social conditions, human health, and the economy. It also shows the actual effects of sustainability efforts, providing a complete picture of the performance of products, processes, and policies.
By expressing these impacts in monetary terms, TCA enables comparison of products, diets, and supply chains in terms of costs and benefits. It also highlights where the greatest opportunities for improvement lie. TCA looks at the entire food supply chain, from production to consumption, offering a robust basis for identifying where change is most needed and most effective.
How much does that banana or that package of chocolate sprinkles really cost? When you browse the supermarket, you only see a fraction of the true cost of food. Price tags don't reveal the cost to society of rainforest damage, worker exploitation, or the spread of animal diseases. True Cost Accounting (TCA) exposes these hidden costs. Not only for consumers, but also for agri-food companies, policymakers, and investors. This allows us to see exactly what we need to work on to make food systems fairer and more sustainable—across the entire supply chain.
TCA is widely applicable. It can be used to assess the sustainability of regions, sectors, diets, organisations, products, and processes. It supports food producers, retailers, foodservice providers, financial institutions, certification bodies, and governments in making targeted improvements.
Seven ways TCA can be applied:
- Helping consumers make more sustainable choices
- Improving supply chain sustainability
- Embedding sustainability in business operations
- Supporting and evaluating certification schemes
- Developing sustainable food policies
- Greening investment and finance portfolios
- Driving local transitions through area-based initiatives
“True Cost Accounting is an important tool for identifying areas in the production process or supply chain where more sustainable choices can be made.”
- Jan Paul van Soest and Maritha Werther
- Food Transition Coalition
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Get in touch with our expert
Do you have a question regarding True Cost Accounting or opportunities to work with us? Please get in touch.
drs. MA (Michiel) van Galen
Projectmanager and researcher, Programme manager True Cost Accounting