Organic farming has proven to be remarkably effective in reversing the negative impact of agriculture on the environment; however, it has not found wider application in total national food production, due to being associated with higher costs. The aim of this study is to conduct a cost comparison between organic and conventional agriculture in Egypt, by using the “Full Cost Accounting” methodology. Full cost accounting measures and values in monetary terms the external costs of environmental impacts of food wastage. The research concludes that although organic agriculture has a slightly higher direct input cost of production, it enables a reduction of the environmental and health damage costs, and therefore, results in better cost effectiveness and profitability in the long term for society as a whole.