Green economics and food - a new, irresistible recipe for progress!

Vicki Hird

16 November 2012

Why the Green economist should not ignore food

If, like me, you eat food, may find it surprising that there is little in the burgeoning literature, webinars and debates on the Green Economy to suggest we eat anything.

There is scant reference to the potential economic gains from a greener food and farming system (aside from the occasional reference to investment in 'greening agriculture'). This is not good and this blog aims to show why the green economy advocates needs to learn to love food.

Food is a huge issue and part of the economy, and essential to life.  Given that we spend a percentage of our income on food - ranging from 9% in affluent economies to up to 45% in the lowest income regions (UK food prices have risen 12% in real terms in the last five years), and given that we use a significant proportion of the land and resources - the natural capital - to produce that food: 87 % of the total water used globally; up to 30% of energy[i] and 38% of the world's land area - it's odd it's rarely discussed in green economy reports.

There's also the well-established economic cost of a non-green food economy: the cost of ill health due to diet or food borne diseases; the cost of farm pollution clean-up from fertiliser, pesticide, greenhouse gasses and soil run off; the cost of insurance (are US farmers are even going to get an insurance pay out for the crops they lost to drought in 2012?) to name only a few...

But of course the 'Green Economy' debate is about jobs and money and lots of positive stuff. And the figures for what the food system delivers for the economy are impressive - in the UK alone, the agri-food sector contributed £89.1 billion (7.0%) to national Gross Value Added in 2010, and 14% of national employment in 2012. But there's not a lot of warm feeling about the bulk of the UK food system; with stories about low wages, high prices, supermarkets squeezing out decent local shops, and misleading price promotions to name a few.

But the food economy can be green and fair:

·         There's the potential for the green local food movement to bring in money and jobs into local economies and farming. The wonderful Land Magazine had a go at calculating what labour we would need to feed ourselves sustainably - some great figures there such as 157,000 more jobs under an organic system.  They acknowledged a major shift in the food system would be needed and much work was required to assess net losses and unforeseen impacts. But it was a fascinating and positive start.

·         The money saved in not having to clean up a trail of waste and pollution caused by industrial farming - we could save the billions of dollars the OECD attributes to farm pollution

·         The money saved by having healthier consumers eating sustainable diets - modelling Friends of the Earth commissioned conservatively suggested in the UK alone we could save  45,000 early deaths and £1.2billion a year to NHS costs if we ate a greener diet.

·         Organic and Fairtrade sales are all showing high market growth globally- supporting significant green and fair jobs and livelihoods.

·         And there's the burgeoning interest in what digital age can do for food systems - farmers in remote regions are using i-cow (so, so clever); others are providing easy online links to their products for customers;  US entrepreneurs are 'hacking' the food system for a better way of getting sustainable food produced and delivered.

It's just a snap shot - who can say what big benefits food could deliver for local and national economies? We must demand clear goals for a green and fair food economy which will ensure people can eat healthily and affordably, whilst providing decent jobs, within environmental and social limits.

The Green Economy - It's not all wind farms and loft insulation you know.