"Australia's Food System Costs Highest Globally" - CSIRO

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Australia’s food system might be booming financially – worth over $800 billion a year – but a new report says it's hiding some serious costs. According to the CSIRO, the "hidden costs" of this system could be as much as $274 billion, making it one of the highest per capita in the world. These hidden costs mostly come from environmental damage and health impacts tied to how we grow, produce, and consume our food.

This is the first time Australia’s national science agency has done a full stocktake of the entire food system, and it paints a complex picture. On one hand, it's a massive success story: around 100,000 farmers are feeding 100 million people globally – including Australia’s population of 27 million. It’s also a major employer, especially in regional areas.

But CSIRO’s Agriculture and Food Director, Dr. Michael Robertson, says we need to look beyond the dollars and exports.

“Our food system isn’t just about farming or exports,” he said. “It’s about making sure all Australians have access to safe, nutritious, and affordable food – and doing it in a way that protects our environment for future generations.”

One of the key takeaways from the report is that Australia lacks a clear, coordinated national food policy. Right now, decisions that affect the food system are scattered across different government departments – from agriculture and health to transport and urban planning. That fragmentation, says CSIRO’s Sustainability Research Director, Larelle McMillan, makes it hard to deal with big-picture challenges like sustainability, food insecurity, and health.

“We need to move from looking at food in silos to actually connecting the dots,” she explained. “That means coordinated reporting on how the food system is performing – and where it’s falling short.”

One glaring example? Nearly one-third of Australian households face moderate to severe food insecurity each year. That’s a huge problem in a country known for its food production.

McMillan believes a regular, national reporting system would help spotlight where action is needed – and give policymakers, communities, and industries the insights to push for change.

“It could be a rallying point,” she said. “A way to bring together a wider range of voices and ideas, and start mapping out a fairer, healthier, and more sustainable food future for everyone in Australia.”

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