Farm costs and food miles: An assessment of the full cost of the UK weekly food basket

Changes in both farm production and food transport have resulted in the imposition of new levels of environmental costs. This study analyses the full costs of foods in the average weekly UK food basket by calculating the costs arising at different stages from farms to consumers' plates. Of the 12 commodities assessed, livestock produce contributes the most costs per kg. The external cost of UK agriculture up to the farm gate is estimated to be pound 1.51 bn yr(-1); it is calculated that a switch to organic production could lead to avoided costs of pound 1. 13 bn yr(-1). Agricultural and food produce accounts for 28% of goods transported on UK roads, currently imposing estimated external costs of pound 2.35 bn yr(-1). The contribution made by sea and air transport is currently trivial owing to low volumes. However, road transport to carry food from the shop to home is estimated to impose a further 1.28 pound bn yr(-1) to total external costs. Subsidies not targeted at environmental improvements cost consumers 2.88 pound bn yr(-1). Thus the real cost of the per capita UK food basket (24.79) pound is calculated to be 2.91 pound more per person wk(-1) (11.8%) if externalities and subsidies are included, with farm externalities (81 p), domestic road transport (76 p), government subsidies (93 p) and shopping transport (41 p) contributing the most. We assess a variety of scenarios for adoption of organic farming, localised food systems and sustainable transport to indicate the substantial potential to reduce environmental costs in the UK food system. (C) 2005 Elsevier Ltd. All rights reserved.