The project aims to achieve four specific objectives (SOs).
SO1: Building the stakeholder platform
The Community of Practice (CoP) was developed and 3 CoP meetings organized with 40+ active members. A total of 7 Mobilisation and Mutual Learning workshops (MML) were organised with a total of 109 participants. Stakeholder interaction is aided by Communication and Dissemination, through e.g. a video; newsletter, publication in the Project Repository Journal;; email marketing campaigns; social media communication; and our website. The 11 FOODCoST case studies are also important for stakeholder interaction. During the last 1.5 years, several workshops were organized to implement the case studies. E.g. in the Case Study Plenary in May '25, all case studies presented key findings. Finally, work on case study reflections and implications started in this period.
SO2: Creating a harmonized methodology and EU-global database
FOODCoST worked on an overview of True Cost Accounting (TCA) methodologies. A description and comparison of 7 TCA approaches was made, and different modules were developed for the measurement and valuation of various externalities. An overview of data sources for TCA has also been compiled. The EU-Global database of external costs has been submitted as a deliverable. Work on measuring of the degree of internalization related to policies and a FOODCoST Valuation Guide are in progress. This work interacts with the case studies.
SO3: Developing a framework for internalisation of externalities through policies and business strategies
A description of policy instruments to internalise externalities was made in Reporting Period 1. In the last 1.5 years there focus was on the policy modelling framework, with macro-economic policy models MAGNET and CAPRI, and micro-models. A meta-analysis of consumer price elasticities was made and its application in the FOODCoST toolbox discussed. The MAGNET and CAPRI models have been enhanced and used in case studies. The FOODCoST policy modelling framework for internalisation was submitted as a deliverable.
The “Description of business models and strategies for the internalization of externalities in agri-food value chains” and “Mapping lock-ins to the internalization of externalities in agri-food systems” were submitted in May 2024. A framework for the categorization of Business Models for the Internalization of Externalities (BM4IOE) was developed. Themes for IOE were identified: value chain product and process innovation; re-arranging value chain; measurement and accreditation tools; consumers/market recognition; innovative financing. The framework and barrier mapping were combined into a single matrix to help businesses to anticipate challenges. In addition, the “FOODCoST Business and Value chain internalisation tools” were finalized.
SO4: Assessing the impact and developing a roadmap
Based on various output and literature, 3 scenarios and a baseline scenario for combined policy and business strategies for internalisation of externalities have been co-created. The scenarios were developed through qualitative impact analysis with stakeholders, incorporating case study insights and internalisation strategy learnings. One of the tasks aims to develop an integrated toolbox to assess the welfare and sustainability impacts of scenarios. Quantitative assessments using the CAPRI and MAGNET models will be complemented by a visualizer tool to display impacts across sustainability categories and key strategies, highlighting trade-offs and synergies. A monitoring framework for the internalization of externalities has been co-created, based on priorities in the New Vision for Agriculture and the Competitiveness Compass.
