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The Food Euro in 2014 : value distribution of food expenditure and impact of agricultural prices increase
[L’euro alimentaire en 2014 : Partage de la valeur de la dépense alimentaire et impact d’une hausse des prix agricoles]

Author

Listed:
  • Philippe Boyer

    (Ministère de l'agriculture, de l'agroalimentaire et de la forêt)

Abstract

In 2014, food consumption, including food services, contains 14.6% in value of domestic agricultural products. The total value added induced by €100 of food expenditure amounts to €65.1, the remainder being food and input imports (€10.3 and €14.8 respectively) and taxes (€9.8). Agriculture receives (or creates) 10% of the induced value added and 6.5% of the consumption expenditure. The shares of trade, catering and other services are respectively 24%, 21% and 22% of the induced value added, that of food industries is 18% and those of other industries is 5%. Since 1999, the distribution of the food euro has evolved as a result of the structural effects of the increasing incorporation of services into the food supply, the development of imports and the evolution of commodity prices, In particular, as a result of the CAP reforms, agricultural price support has fallen. Short-term changes in price ratios also play a role in inter-annual changes in the share of agriculture in the food euro. The jobs induced by food consumption are estimated in 2014 to 2.6 million full-time equivalents, of which nearly 70% excluding agriculture and food industries. These induced jobs have fallen by 7% since 1999, with growth in trade and services not offsetting the decline in agriculture and industry. The increase in household expenditure on household food products, which would automatically result from a 10% increase in the prices of domestic agricultural products, would be 4.4%, under an assumption of unchanged trade and transport margins. Of the total food consumption in domestic and imported products, including catering, this increase would be 2.7%; it would cover 20% of total household expenditure.

Suggested Citation

  • Philippe Boyer, 2014. "The Food Euro in 2014 : value distribution of food expenditure and impact of agricultural prices increase [L’euro alimentaire en 2014 : Partage de la valeur de la dépense alimentaire et impact d’un," Post-Print hal-03123647, HAL.
    • Handle: RePEc:hal:journl:hal-03123647
    Note: View the original document on HAL open archive server: https://hal.science/hal-03123647
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    References listed on IDEAS

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    1. Patrick Canning & Alfons Weersink & Jessica Kelly, 2016. "Farm share of the food dollar: an IO approach for the United States and Canada," Agricultural Economics, International Association of Agricultural Economists, vol. 47(5), pages 505-512, September.
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