The “hidden costs” of Australia’s $800 billion food system could be as much as $274 billion, among the highest per capita in the world.

Australia’s national science agency, CSIRO, has completed the first-ever national stocktake of the country’s food system, identifying successes and challenges that need resolving.

Overall, 100,000 Australian farmers feed about 100 million people around the world – including the national population of 27 million.

The new report, released today, calls for a new approach to management and reporting on the system to meet key challenges such as resilience in the face of new challenges to farmers, delivering healthy food to all, and meeting critical sustainability goals.

The report also revealed the hidden costs of Australia’s food system could be as high as $274 billion – primarily through environmental and health impacts.

It’s the highest hidden costs per capita in the world.

CSIRO Agriculture and Food Director Dr Michael Robertson said knowing and understanding the state of our food system through regular reporting is the critical first step in dealing with the complex challenges and opportunities facing Australia’s food system.

“Our food system is more than just producing and exporting commodities – it’s also about providing equitable access to safe, nutritious and healthy food, produced sustainably for all Australians,” Robertson said.

“We have an intergenerational responsibility to pursue these goals vigorously.”

He said Australia’s food system was an “economic and production success” that made more than $800 billion a year and was a significant employer, especially in regional areas.

But CSIRO sustainability research director Larelle McMillan said there was no coherent food policy in Australia, with government portfolios including agriculture, environment, industry, social services, health, transport, and urban planning all connected to it.

“We need to move from analysing specific parts of the food system, to establishing coordinated reporting for important food system attributes and interactions, thus enabling connected up action for a national food system that serves all,” McMillan said.

McMillan said a reporting system would offer valuable insights into where the food system is falling short – for example, almost a third of Australian households experience moderate or severe food insecurity each year – and where it’s failing to meet the needs of all Australians.

“This can be used as a focal point to bring together a greater diversity of voice and vision to identify pathways to sustainable, healthy and affordable food for all Australians,” she said.