« The food Euro ». Distribution of value added in the food chain from 1995 to 2010 and prospects for 2013.

BOYER, Philippe (2014): « The food Euro ». Distribution of value added in the food chain from 1995 to 2010 and prospects for 2013. Published in: The Letter of the OBSERVATORY on formation of prices and margins of food products No. #5 (May 2014)

Abstract

In 2010, for € 100 of food domestic consumption:

- the necessary agricultural production represents € 19,

- the value created in the post-farm activities - trade, transport and industries -, approaches € 58,

- the value of the imported food is € 13,

- and the amount of the taxes is about € 10. The decomposition of the two first aggregates above (agriculture, post-farm value) shows that food expense of € 100 generates:

- value added, for € 63, distributed in all the industry groups of the economy, of which € 8.1 in agriculture (increasing after 2009, due to the amelioration of agricultural prices), € 10 in food processing industry, € 18 in services and € 21 in trade,

- importations of intermediate consumption, for € 13.7 (increasing since 1995)

- imported food (€ 13) and taxes (€ 10), already mentioned. In 2010 always, the gross operating surplus of the agriculture is resulting from the following demands:

- the domestic demand for food in the retail trade, expressed to agriculture and food processing industry, for 36 p.c.,

- the demand expressed to the hotels and restaurants, for 5 p.c.,

- the other domestic demands (in which, agricultural commodities used in the non-food industries), for 9 p.c., the exportations of agricultural products and food, for 26 p.c.,

- and from the direct subsidies, for 29 p.c

• Item Type: MPRA Paper
• Language: English
• Keywords: Inoput-output analysis; Value added; Food consumption
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

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