Today’s agrifood systems are inherently unsustainable, causing significant negative impacts for human health, the environment and society. These impacts generate enormous hidden costs that amount to more than US$10 trillion per year globally, according to the Food and Agricultural Organization of the United Nations (FAO)’s 2023 and 2024 State of Food and Agriculture reports. The urgency of reducing these hidden costs has been widely acknowledged, but effective action has so far been hindered by a lack of complete information and reliable strategies for effective change. Meanwhile, consumers remain largely unaware of the of the hidden costs associated with food production, transportation and consumption. At the EU level, the Strategic Dialogue on the Future of Agriculture states the need for transparency on the true value of food for consumers, while in Germany the need for greater transparency regarding hidden costs and benefits from food production has been highlighted multiple times through initiatives such as the National Dialogue on Food Systems and the Youth Policy Forum organized by the Federal Ministry of Agriculture, Food and Regional Identity (BMLEH).

True Cost Accounting (TCA) has been recognized as a promising approach to effectively identify and quantify hidden costs, increase transparency for consumers, and guide strategies for holistic agrifood systems transformation. In light of this, BMLEH commissioned TMG to develop a roadmap for a scientifically based system for recording and evaluating the true costs and hidden benefits of the agri-food sector, aimed at improving the transparency of sustainability services throughout the food value chain in Germany.

The TCA Roadmap project

Building on its extensive experience in TCA, TMG conducted the project in three phases:

1. A comprehensive mapping of existing TCA methods and databases (via a literature review and a survey targeting TCA experts) provided an understanding of the current state of research.

2. A SWOT analysis of existing methods and databases assessed the strengths, weaknesses, opportunities, and threats of the current situation. A first stakeholder workshop built on interim results.

3. A suggested roadmap of concrete actions for policymakers, researchers, and the private sector was created, supported by insights from a second workshop that engaged relevant stakeholders.

The project marked a first step toward making the implementation of TCA in Germany possible and outlined the necessary next steps. By doing so, it sought to further advance TCA as a tool to support the transition to more sustainable food production and informed consumer choices in Germany.