The true cost of the food chain

The municipality of Amsterdam and Almere have expressed ambitions for a more sustainable food system, which include the support of Short Food Supply Chains (SFSC) in the Metropole Region Amsterdam. In an aim to understand the impact of SFSC products, the municipalities will look into the True Cost Accounting (TCA) of their catering service.

True Cost Accounting
Food prices reflect information of a product through value accumulation throughout the food chain. Current food prices reflect input and labor costs, peculiarity and demand, but they do not mirror the value of the product as part of a larger system (e.g., the hidden costs of biodiversity loss and forced labor). True Cost Accounting (TCA) tries to determine the true price of products by including the impact on sustainable, social, and humane factors. Factors such as pollution, child labor, water use, health parameters and animal welfare.

Short Food Supply Chains
In creating more sustainable urban food systems, shortening the food supply chain feels like a logical step. However, as the Netherlands has a highly efficient, export driven, agricultural system, what is the contribution of SFSC products on sustainability? Besides, local produce can be more expensive. Could this price difference be explained through its positive impact on the planet? This is what we want to find out through True Cost Accounting.

Public Private Partnership
In collaboration with the municipality of Amsterdam, the municipality of Almere, stichting Flevo Campus and AMS-institute, all parties enter the Public Private Partnership (PPS) of Wageningen Economic research on TCA, to answer the question; What is the true price of Short Food Supply Chain (SFSC) produce? Starting January 2024, Wageningen Economic Research will conduct research on the TCA of the catering service of the respective municipalities.

Urban Food System
Understanding the impact of the urban food system is the first step towards more sustainable food policies and choices. With the TCA of SFSC products, we can recommend food choices for the municipalities that contribute to a more sustainable urban food system.