WHY TRUE COST ACCOUNTING?

If we compare food prices in the store, most likely conventional food is offered much cheaper then the certified organic one. But if we calculate the impact of the production, processing and transport on the social and environment in monetary terms (true cost accounting), we realize that we pay multiple times for a conventional product. This is usually described as indirect costs, which are not transparently visible for the customer. 

WHAT IS TRUE COST ACCOUNTING?

As we see, the most of the current agriculture and food trading system is mainly focused on monetary profit. The occuring hidden costs are only externalised for profit reasons by the company and are mostly carried by nature and society.  Not only ecologically, also socially, as another reason for overly cheap products is underpaying employees, which leads to poverty and associated problems.

INDIRECT COSTS INCLUDE FOR EXAMPLE:



  • governmental subventions for chemical orientated agriculture through taxes
  • we pay tax for commercial efforts repairing environmental damages like polluted groundwater. 
  • The human health effect of chemical residues in foodstuff leads to an increase of financial cost in the health system.
  • A significantly higher amount of water per cultivation area(for Anise up to 6% more) is used in conventional agriculture 
  • Shocking numbers only matter if they can motivate action.

However, showing you the real costs of products is not the same as letting you pay for them:

With crops cultivated under Economy of Love standards, the consumer has a health benefit, the soil keeps itself fertile, no nature is being polluted as the emissions are, first of all, reduced to a minimum and, on top of that, compensated.