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Economic implications 
of changing food consumption patterns 
Franco Sassi 
OECD – Health Division 
PREPARATORY TECHNICAL MEETING 
FAO Headquarters, Rome, Italy 
13-15 November 2013
ECONOMIC IMPLICATIONS 
OF CHANGING FOOD 
CONSUMPTION PATTERNS 
Franco Sassi PhD 
OECD – Health Division 
Rome, 14th November 2013
UN High-level Meeting on NCDs
Leading Risk Factors for Health 
Attributable Mortality, 2004 
Source: WHO, 2009
Deaths from NCDs 
Worldwide, by Income Group 
60,000,000 
50,000,000 
40,000,000 
30,000,000 
20,000,000 
10,000,000 
0 
2004 2015 2030 
High income Higer-middle income 
Lower-middle income Low income 
Source: WHO estimates and projections, 2008
Obesity: a Global Epidemic 
India 
China 
Russia 
OECD 
Brazil 
S Africa 
UK 
Mexico 
0% 20% 40% 60% 80% 
% of adult population 
• In Brazil, obesity tripled 
in men and doubled in 
women in 30 years; in 
India, up to 40% are 
overweight in urban areas 
• Diabetes in China is now 
as common as in the US 
• Obesity accounts for less 
than 1% of GDP in most 
OECD countries, over 1% 
in the US and up to 4% in 
China
The OECD/WHO CDP Model 
Fibre 
adequate fibre intake 
low fibre intake 
Physical activity 
adequate physical act 
insuff .physical act 
Body mass 
index 
normal weight 
pre-obesity 
obesity 
Blood pressure 
normal 
hypertension 
Cholesterol 
normal 
hypercholesterolemia 
Glycaemia 
normal 
diabetes 
Cancers 
Stroke 
Ischemic heart 
disease 
Fat 
low fat intake 
medium fat intake 
high fat intake 
Socio-economic status 
upper 
lower
A Comprehensive & Affordable 
Prevention Package 
OECD Countries Emerging Economies 
Mass media campaigns Mass media campaigns 
Compulsory food labelling Compulsory food labelling 
Industry self-regulation of food 
advertising to children 
Government regulation of food 
advertising to children 
Physician-dietician counselling Fiscal measures 
School-based interventions 
Canada Europe Brazil China 
24.03 $/cap 22.45 $/cap 0.40 $/cap 0.20 $/cap
What Can Prevention Achieve?
Prevention Keeps Healthy 
Years of Life Free of NCDs 
Cancers (lung, colorectal, breast) Cardiovascular diseases 
100 
90 
80 
70 
60 
50 
40 
30 
20 
10 
0 
0 10 20 30 40 50 
Million life years 
Time (years) 
100 
90 
80 
70 
60 
50 
40 
30 
20 
10 
0 
0 10 20 30 40 50 
Million life years 
Time (years) 
Europe China Brazil Canada
An Affordable Prevention Package 
5 
4 
3 
2 
1 
0 
1.2 
0.4 
India China Brazil South Africa Russian 
Federation 
4.5 
Mexico 
US$ per head 
High blood pressure & cholesterol Unhealthy diet and physical inactivity 
Alcohol use Tobacco use
Prevention is a Good Investment 
Impact on Health Expenditure 
0 
-20 
-40 
-60 
-80 
-100 
-120 
-140 
0 10 20 30 40 50 
$ / capita 
Time (years) 
Europe 
Canada 
Brazil 
China
% Decrease Required in Fat Consumption 
COUNTRIES % decrease on average 
(2012-2021) 
Argentina -0.9 
Australia -1.4 
Brazil -0.9 
Canada -1.2 
Chile -0.9 
China -0.8 
European Union -1.1 
India -0.7 
Japan -0.8 
Korea -0.8 
Mexico -1.4 
New Zealand -1.4 
Russian Federation -0.8 
United States -1.4
Scenario 1 Results 
% Atlantic beef world price 
1 
0 
-1 
-2 
-3 
-4 
-5 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 
% Cheese world price 
difference 
0 
-1 
-2 
-3 
-4 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 
% Vegetable oil world price 
difference 
0 
-1 
-2 
-3 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 
% Coarse grains world price 
difference 
0 
-1 
-2 
-3 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
SATURATED FAT REDUCTION needed 
to meet WHO guidelines 
0 
-5 
-10 
-15 
-20 
-25 
-30 
-35 
-40 
Reductions to meet 10% calorie intake 
EU NZL AUS USA BRA RUS ARG MEX CHN
Scenario2 Results 
14000 
12000 
10000 
8000 
6000 
4000 
2000 
0 
Bovine consumption and production (kt) 
baseline scenario 10% baseline scenario 10 % 
Consumption Production 
USA 
BRA 
E27 
CHN
6000 
5000 
4000 
3000 
2000 
1000 
0 
Scenario2 Results 
Pacific beef and veal price (USD/t) 
baseline 
scenario 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1400 
1200 
1000 
800 
600 
400 
200 
0 
Scenario2 Results 
Vegetable oil world price 
baseline 
scenario 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Key Policy Implications 
• Obesity and NCDs are global economic issues 
• Food and nutrition policies must be part of a 
comprehensive intersectoral prevention strategy 
• Potential for major health, health expenditure 
and productivity gains 
• Limited effects on world markets imply such 
changes should be economically sustainable 
over the medium and long term

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ICN2-Economic implications of changing food consumption patterns

  • 1. Economic implications of changing food consumption patterns Franco Sassi OECD – Health Division PREPARATORY TECHNICAL MEETING FAO Headquarters, Rome, Italy 13-15 November 2013
  • 2. ECONOMIC IMPLICATIONS OF CHANGING FOOD CONSUMPTION PATTERNS Franco Sassi PhD OECD – Health Division Rome, 14th November 2013
  • 4. Leading Risk Factors for Health Attributable Mortality, 2004 Source: WHO, 2009
  • 5. Deaths from NCDs Worldwide, by Income Group 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2004 2015 2030 High income Higer-middle income Lower-middle income Low income Source: WHO estimates and projections, 2008
  • 6. Obesity: a Global Epidemic India China Russia OECD Brazil S Africa UK Mexico 0% 20% 40% 60% 80% % of adult population • In Brazil, obesity tripled in men and doubled in women in 30 years; in India, up to 40% are overweight in urban areas • Diabetes in China is now as common as in the US • Obesity accounts for less than 1% of GDP in most OECD countries, over 1% in the US and up to 4% in China
  • 7. The OECD/WHO CDP Model Fibre adequate fibre intake low fibre intake Physical activity adequate physical act insuff .physical act Body mass index normal weight pre-obesity obesity Blood pressure normal hypertension Cholesterol normal hypercholesterolemia Glycaemia normal diabetes Cancers Stroke Ischemic heart disease Fat low fat intake medium fat intake high fat intake Socio-economic status upper lower
  • 8. A Comprehensive & Affordable Prevention Package OECD Countries Emerging Economies Mass media campaigns Mass media campaigns Compulsory food labelling Compulsory food labelling Industry self-regulation of food advertising to children Government regulation of food advertising to children Physician-dietician counselling Fiscal measures School-based interventions Canada Europe Brazil China 24.03 $/cap 22.45 $/cap 0.40 $/cap 0.20 $/cap
  • 10. Prevention Keeps Healthy Years of Life Free of NCDs Cancers (lung, colorectal, breast) Cardiovascular diseases 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 Million life years Time (years) 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 Million life years Time (years) Europe China Brazil Canada
  • 11. An Affordable Prevention Package 5 4 3 2 1 0 1.2 0.4 India China Brazil South Africa Russian Federation 4.5 Mexico US$ per head High blood pressure & cholesterol Unhealthy diet and physical inactivity Alcohol use Tobacco use
  • 12. Prevention is a Good Investment Impact on Health Expenditure 0 -20 -40 -60 -80 -100 -120 -140 0 10 20 30 40 50 $ / capita Time (years) Europe Canada Brazil China
  • 13. % Decrease Required in Fat Consumption COUNTRIES % decrease on average (2012-2021) Argentina -0.9 Australia -1.4 Brazil -0.9 Canada -1.2 Chile -0.9 China -0.8 European Union -1.1 India -0.7 Japan -0.8 Korea -0.8 Mexico -1.4 New Zealand -1.4 Russian Federation -0.8 United States -1.4
  • 14. Scenario 1 Results % Atlantic beef world price 1 0 -1 -2 -3 -4 -5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 % Cheese world price difference 0 -1 -2 -3 -4 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 % Vegetable oil world price difference 0 -1 -2 -3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 % Coarse grains world price difference 0 -1 -2 -3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
  • 15. SATURATED FAT REDUCTION needed to meet WHO guidelines 0 -5 -10 -15 -20 -25 -30 -35 -40 Reductions to meet 10% calorie intake EU NZL AUS USA BRA RUS ARG MEX CHN
  • 16. Scenario2 Results 14000 12000 10000 8000 6000 4000 2000 0 Bovine consumption and production (kt) baseline scenario 10% baseline scenario 10 % Consumption Production USA BRA E27 CHN
  • 17. 6000 5000 4000 3000 2000 1000 0 Scenario2 Results Pacific beef and veal price (USD/t) baseline scenario 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
  • 18. 1400 1200 1000 800 600 400 200 0 Scenario2 Results Vegetable oil world price baseline scenario 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
  • 19. Key Policy Implications • Obesity and NCDs are global economic issues • Food and nutrition policies must be part of a comprehensive intersectoral prevention strategy • Potential for major health, health expenditure and productivity gains • Limited effects on world markets imply such changes should be economically sustainable over the medium and long term

Notas do Editor

  1. Apply a shock Δi for a period of ten years : values given health department model
  2. Decrease by 30 % at the end of the period of the simulation
  3. Cross-sectional costs are higher for obese patients; obese patients cost 30% more than normal-weight patients But lower costs in a life perspective as lower life-expectancy Obesity accounts for 1 to 3% of total health expenditure in most countries and up to 10% in the US Obesity accounts for up to 1% of GDP in most OECD countries, over 1% in the US and up to 4% in China