agro industry trends ppt 1
• Definition of agro-industry: post-harvest activities involved in the transformation, preservation and preparation of agricultural production for intermediary or final consumption (with emphasis on food)
• Whether looked at from exports (esp. “nontraditionals”) or domestic market (population growth/urbanization) agro-industry fundamental to income and employment creation in developing countries
• In an extended definition agri-processing ranges from 20-35% of developing country
GDP. The entire food-system may account for as much as 50% of developing country GDP.
• The agribusiness to agriculture ratio increases with development (0.6, 2.0 and 3.3 using WDR typology) and is highly correlated with HDI.
Agriculture
Share of
GDP**(1)
Agribusiness
Share of
GDP**(2)
Ratio
(2)/(1)
Agriculture-based Countries
0.39
0.22
0.57
0.050
0.468
Transforming Countries
0.16
0.32
1.98
0.040
0.224
Urbanized Countries
0.08
0.27
3.32
0.060
0.203
United States
0.01
0.13
13.00
-
-
LICs
0.043
0.32
LMICs
0.055
0.20
UMICs
0.051
0.20
Year*
Note: (*) UNIDO Industrial Statistics Database 2005 for agro-processing data with respective year.
Note: (**) Source on Jaffee et al (2003) for agriculture and agribusiness share of GDP.
Agribusiness combines the value added for agro-related industries and that of agricultural trade and distribution.
Unweighted averages consider all information available in each column.
% Agro% Food-processing processing and beverages in sector in GDP* total manufacturing*
1
Human Development Index - HDI
0.9
United States
0.8
Mostly Urbanized countries 0.7
0.6
0.5
Higher correlation for low HDI countries
0.4
0.3
Mostly Agriculture-based countries 0.2
0.1
Agribusiness-to-Agriculture Ratio
0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Source of data: Jaffee et al (2003) and Human Development Statistics (UN)
• Employment statistics fragile. ILO estimates for formal sector and countries with official statistics around 22
• Whether looked at from exports (esp. “nontraditionals”) or domestic market (population growth/urbanization) agro-industry fundamental to income and employment creation in developing countries
• In an extended definition agri-processing ranges from 20-35% of developing country
GDP. The entire food-system may account for as much as 50% of developing country GDP.
• The agribusiness to agriculture ratio increases with development (0.6, 2.0 and 3.3 using WDR typology) and is highly correlated with HDI.
Agriculture
Share of
GDP**(1)
Agribusiness
Share of
GDP**(2)
Ratio
(2)/(1)
Agriculture-based Countries
0.39
0.22
0.57
0.050
0.468
Transforming Countries
0.16
0.32
1.98
0.040
0.224
Urbanized Countries
0.08
0.27
3.32
0.060
0.203
United States
0.01
0.13
13.00
-
-
LICs
0.043
0.32
LMICs
0.055
0.20
UMICs
0.051
0.20
Year*
Note: (*) UNIDO Industrial Statistics Database 2005 for agro-processing data with respective year.
Note: (**) Source on Jaffee et al (2003) for agriculture and agribusiness share of GDP.
Agribusiness combines the value added for agro-related industries and that of agricultural trade and distribution.
Unweighted averages consider all information available in each column.
% Agro% Food-processing processing and beverages in sector in GDP* total manufacturing*
1
Human Development Index - HDI
0.9
United States
0.8
Mostly Urbanized countries 0.7
0.6
0.5
Higher correlation for low HDI countries
0.4
0.3
Mostly Agriculture-based countries 0.2
0.1
Agribusiness-to-Agriculture Ratio
0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Source of data: Jaffee et al (2003) and Human Development Statistics (UN)
• Employment statistics fragile. ILO estimates for formal sector and countries with official statistics around 22