Fortification Economics

While the social and humanitarian case for reducing vitamin and mineral deficiencies (VMD) is enormous, the economic benefits are equally compelling. The Micronutrient Initiative and the United Nations estimate that VMDs rob countries of 2% of their gross domestic product through decreased productivity and unnecessary burdens on the health care system. But there is a hard dollar benefit as well - because most fortification programs cost between five and twenty cents per year depending upon the levels of fortification, and because the diseases they prevent are expensive to treat, there is an immediate payback to the nation's treasury. Folic acid fortification alone has a 36:1 first year payback in savings to the health care system. Bill Gates recognized the compelling economic case for micronutrients, and as a result The Bill and Melinda Gates Foundation strongly supports micronutrient programs throughout the world.

What is the cost versus the benefit of fortification?

The case for fortification is strongest in countries suffering from severe health challenges such as HIV, malaria, measles, tuberculosis, hunger, or dengue fever. The economic benefit, or payback, for a country is material and immediate as the calculable cost of fortification can be assessed against the cost of treating the manifested disease. The annual payback for folic acid fortification alone is in excess of 100:1.

What does fortification cost?

There are two primary expenses associated with food fortification: capital equipment and operating expense. The capital equipment involves straightforward machinery to evenly distribute a dry premix or a liquid (in the case of iodine) into the food supply as it is being processed. Since most countries have some fortification programs in place, often there is no incremental equipment expense, leaving the country with the small ongoing cost of the premix, which for most micronutrients is between five and ten cents per person per year.

What are the economic benefits of fortification?

The economic benefits are enormous and immediate. The Micronutrient Initiative estimated that developing countries lose up to 2% of their gross domestic product through micronutrient malnutrition. For countries battling severe issues such as HIV, malaria, dengue fever, diarrhea, and tuberculosis, the benefits are even greater since the cost of treating these preventable diseases diverts funding from other healthcare priorities.

“Probably no other technology available today offers as large an opportunity to improve lives and accelerate development at such low cost and in such a short time,” The World Bank.

What does the food industry have to say about fortification?

“The very business of doing business in a responsible way can bring social, economic and environmental benefits and where social goals and business goals are aligned…the potential synergies and positive benefits can be substantial.”  Antony Burgmans, Chairman, UNILEVER.