New report exposes flaws in Australia’s food system

Australia is often hailed as the ‘lucky country’—a land of plenty, with rolling fields, world-class produce, and enough food to feed not just ourselves, but millions more around the globe. 

But a new report from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) has pulled back the curtain on our food system, and the findings are enough to make you lose your appetite.

Despite producing enough food to feed nearly 100 million people, Australia’s $800 billion food system is, in the words of the CSIRO, ‘falling short’. 

The first national stocktake of our food system, detailed in the Food System Horizons report, reveals a sobering truth: not all Australians have access to the food they need to be healthy, and the hidden costs of this failure are staggering. 

A land of plenty—but not for everyone

Let’s start with the basics. Australia’s 100,000 farmers are agricultural powerhouses, growing enough to feed our population of 27 million, plus another 73 million people overseas. 

On paper, we’re a food-secure nation. But dig a little deeper, and the cracks start to show.

Food security isn’t just about having enough wheat and beef to export. It’s about whether everyday Australian can afford a healthy, balanced diet. And here, the system is letting us down. 

The report highlights that millions of Australians rely on food charity every year, and almost a third of households experience moderate or severe food insecurity. 

The hidden price tag: Billions in health and environmental costs

You might think the price you pay at the checkout is the true cost of your groceries. Think again. 

The CSIRO estimates that lifestyle diseases linked to unhealthy eating—think diabetes, heart disease, and more—cost our economy a jaw-dropping $49 billion each year in hospital bills, healthcare, and lost wages. In fact, these ‘hidden costs’ are the highest in the world per capita.

Despite Australia’s massive food production, millions still struggle with access to nutritious and affordable meals, exposing deep flaws in the nation’s food system. Image Source: Mark Stebnicki / Pexes

But the bill doesn’t stop there. The environmental toll of our food system is even greater, with negative impacts like soil degradation, water pollution, loss of biodiversity, and greenhouse gas emissions costing us around $225 billion. 

Add it all up, and the hidden costs of our food system reach a staggering $274 billion—about 13 per cent of Australia’s entire gross domestic product (GDP).

Not enough veggies, too many processed foods

Here’s a bitter pill to swallow: Australia doesn’t produce enough vegetables to meet our own recommended daily intake. 

Instead, our food environment is flooded with convenient, highly processed foods—the kind that are easy to grab, but hard on our health. 

The report warns that the promotion and availability of these foods is costing us billions in lost productivity and preventable, diet-related diseases.

A fragmented approach—and a call for change

So, why is this happening in a country as wealthy and resource-rich as ours? 

According to CSIRO Sustainability Research Director Larelle McMillan, the problem is that food policy in Australia is scattered across too many portfolios—agriculture, environment, health, social services, transport, urban planning—with no one pulling it all together.

‘We need to move from analysing specific parts of the food system to establishing coordinated reporting for important food system attributes and interactions,’ Ms McMillan says. 

In other words, it’s time to stop working in silos and start seeing the bigger picture.

What needs to change?

The CSIRO report doesn’t just point out the problems—it offers a way forward.

Regular, coordinated reporting on the state of our food system would help us see where we’re falling short and where we need to act. 

It would also bring together a wider range of voice—from farmers to consumers, policymakers to health experts—to chart a path towards a food system that’s healthy, sustainable, and fair for all.

Dr Michael Robertson, CSIRO’s agriculture and food director, puts it simply: ‘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. We have an intergenerational responsibility to pursue these goals vigorously.’

The hidden costs of poor nutrition and environmental damage place a $274bn burden on the economy, highlighting the urgent need for coordinated food policy reforms. Image Source: hidesy / Shutterstock

Have your say

As Australia continues to grapple with the complexities of its food system, it’s clear that there are many perspectives worth exploring. 

Whether you’re a grower, policymaker, health worker or simply someone trying to make healthy choices at the shops, these findings prompt important conversations about the way forward.

Have you noticed changes in the availability or affordability of nutritious food in your community? What role do you think individuals, industries, or governments should play in shaping a healthier, more sustainable food system? We’d like to hear your thoughts—feel free to share your experiences or reflections in the comments below.

Also read: More Australians turning to food relief—how bad is the crisis?

Abegail Abrugar
Abegail Abrugar
Abby is a dedicated writer with a passion for coaching, personal development, and empowering individuals to reach their full potential. With a strong background in leadership, she provides practical insights designed to inspire growth and positive change in others.

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