09.07.2025
By Queralt Ruhi Rubio & Estefania Marti
How can public procurement be a driving force for more fair and sustainable food systems? That question brought together over 30 experts, practitioners, and policymakers from different countries at our recent online partner meeting organised by the Global Partnership on the True Price of Food (GPTPF).
Setting the Stage: Why Public Procurement Matters
In 2020, the Open Contracting Partnership released what it called the most comprehensive analysis of public procurement to date, estimating that governments spend USD 13 trillion per year on it, from infrastructure to technology. Food is a major category: billions are spent annually on food for schools, hospitals, prisons, and public institutions. The World Food Programme (WFP) alone procures food worth USD 1.8 to 2.5 billion annually.
Yet, much of this food carries hidden social and environmental costs, from carbon emissions and water pollution to poor labor conditions and health impacts. According to the UN Food and Agriculture Organization (FAO), true cost accounting and true pricing offer a method to quantify these externalities and use that knowledge to drive smarter, fairer procurement practices, becoming powerful drivers of food systems transformation. In fact, a scientific group at the 2021 UN Food Systems Summit already recommended that governments “stimulate true pricing through public procurement, prioritising foods with low external costs”. True priced food procurement can advance environmental, social, and health goals by shifting decision-making to maximize true value and raising consumer awareness to promote long-term change.
Insights from our GPTPF member meeting:
Policy Perspectives from the Netherlands
During our meeting on 25 June, Dutch MP Joost Sneller (D66) shared recent developments in embedding true pricing into Dutch policy. He highlighted two parliamentary motions: one calling for a government-wide methodology for true pricing, which did not pass, and a second, adopted with support from 81 out of 150 seats, which calls for creating a level playing field by easing burdens for sustainable producers.
Sneller emphasized the importance of cross-party support, noting that fairness and competitiveness are key arguments that resonate widely. In a system where sustainable producers often face higher costs and more bureaucracy than their peers, true pricing can help correct market distortions.
These policy developments are especially relevant for procurement. The Dutch government spends around EUR 116 billion annually on goods and services. Therefore, procurement is not just an economic activity, but a major lever for market transformation. With a procurement-to-GDP ratio of 20.9%, well above the OECD average, embedding true pricing in Dutch procurement could help align economic policy with environmental and social goals.
Research & Practice: From Coffee in Amsterdam to School Meals in New York
Colleagues from presented two promising examples from high-budget contexts of how public procurement can catalyze impact:
In Amsterdam, Marijke Huzen shared a project integrating true pricing into the city’s coffee procurement. By evaluating the social and environmental costs of its current coffee tender, Amsterdam aims to refine future bids and eventually expand this approach to other product categories.
This initiative supports the city’s Implementation Agenda for a Circular Amsterdam 2023–2026, which aims to halve raw material use by 2030 and become fully circular by 2050. Procurement plays a central role in this transition, with the goal of making 100% of the city’s purchases circular by 2030. Notably, true pricing is named explicitly as a policy objective. Chapter 3 (“Actions by Value Chain”) includes the following commitment:
“The City needs to set a good example, and from 2025, we will state the ‘true price’ of our procurement. The idea of true price, or true cost, is important because it creates a more level playing field for circular businesses. It is an extended version of the CO2 price that is being included in procurement. The market price of products does not include the negative impact on people and the planet of production, transport, usage and waste. What we call the true price does include this impact. At present, businesses charging a true price would not be able to compete. This is not because sustainable products are more expensive, but because non-sustainable products are not priced fairly.”
As the Netherlands’ largest municipality, Amsterdam spends over EUR 2.8 billion annually in public procurement. Leveraging that spending for sustainability, circularity, and inclusion has the potential to create meaningful impact and set a powerful example.
In New York State, where over USD 1.3 billion is spent annually on food, Hans Baumers presented “True costs of food: Valuing health impacts of food consumption” working paper. In collaboration with Cornell University College of Agriculture and Life Sciences, this paper is part of a larger research project explores how incorporating food system-related externalities could inform procurement decisions and adjust procurement bids.
The working paper provides a proof of concept health valuation model, as an example, Hans shared the impact of adding one portion of vegetables (100g) per resident in New York State daily:
- Burden of disease: ~1,993 fewer deaths annually from heart disease (a 4% reduction).
- Economic benefit: USD 0.17 per serving, due to reduced health costs.
- Wellbeing benefit: USD 4.55 per serving, reflecting improved quality and length of life.
This kind of analysis makes a compelling case for using true pricing to design procurement strategies that deliver both economic and societal returns.
Global Perspectives: System Change Through Institutional Procurement
Florence Tartanac (FAO) framed public food procurement as a strategic lever for achieving broader development goals. By choosing what food is bought, how it is produced, and from whom, governments can:
- Support local and family farmers
- Promote healthier diets and food environments
- Encourage transitions to agroecology and organic agriculture
- Influence market demand and production practices system-wide
However, doing so requires both supply- and demand-side solutions: enabling policies, inter-ministerial collaboration, local institutional capacity, and inclusive procurement procedures.
She shared several FAO initiatives supporting sustainable food procurement. Brazil’s National School Feeding Program (PNAE) was presented as a globally recognized model. She also referenced the FAO publication Public Food Procurement for Sustainable Food Systems and Healthy Diets, which outlines key enablers, barriers, and case studies from across the globe.
International initiatives were also spotlighted, such as the One Planet Network’s Sustainable Food Systems Programme, which includes a working group on public food procurement, and the School Meals Coalition, launched after the 2021 UN Food Systems Summit to advance sustainable school.
The topic of true cost accounting and public food procurement is getting more attention at international stages. During a COP16 side event hosted by CGIAR, the Rockefeller Foundation showcased its work on school meals with local partners, for example by replacing refined grains with fortified whole grains. In Kenya, this contributed to a new national school lunch policy aiming for 50% of meals to be sourced from climate-smart and regenerative practices by 2030.
Key Takeaways
- Public procurement is a powerful lever for food systems transformation. When externalities are accounted for, governments can direct their vast spending toward fairer, more sustainable outcomes.
- True pricing helps level the playing field. By quantifying hidden social and environmental costs, it reduces unfair on sustainable producers and creates fairer market conditions. This message resonates across political divides and is crucial for advancing future policy initiatives.
- True cost accounting and true pricing can inform public food procurement decisions . From Amsterdam’s circular economy and procurement of coffee strategy to New York’s procurement bid system, recent research and practice projects are proving both the feasibility and value of integrating true cots in decision-making.
- System change needs supportive conditions. Success depends on enabling policies, improved procurement procedures, inter-ministerial coordination, and strong local institutional capacity.
- True pricing is not about making food more expensive. It’s about understanding and addressing the root causes of hidden costs so that over time they can be reduced or eliminated altogether. Maybe instead: It’s about revealing and reducing hidden costs over time, helping to build healthier food systems that are affordable and fair in the long term.
We thank all speakers and participants for their inspiring contributions and look forward to continuing this exchange.
If you’re working on sustainable or public food procurement and want to get involved, we invite you to join the Global Partnership on the True Price of Food. You can sign up here: