World Food Policy Volume 2, Number 1, Spring 2015 | Page 31

World Food Policy

Table 6. Main forward linkages (F) of primary agriculture in 2008

Number
of
sectors
in the
NPP

19
25

Activity

F1
F2
Agricultural
Total cost domestic
costs/total cost inputs agricultural/farm
in activity%
input costs%

Links forward total
(F1×F2)%

71.8
70.4

100
52.3

71.8
36.8

24
26
31
30
23
34
29
79
32
35
27
78

Processing and preserving of meat
Manufacture of grain mill products
Processing and preserving of vegetables
(including fruit)
Manufacture of dairy products
Preparation of feed
Manufacture of wines
Preparation of pisco and spirits
Oil production
Manufacture of snuff
Manufacture of other food products
Restaurants
Brewing
Textile manufacturing
Manufacture of bakery products
Hotels

49
44.3
30.9
21.9
18.4
16.3
12
10.1
8.4
8.3
6.5
4.7
4.2

95.2
100
48.9
100
100
86.5
47.2
86.8
91.1
24.9
46.3
67.7
92 .0

46.7
44.2
15.1
21.9
18.4
14.1
5.7
8.7
7.7
2.1
3.0
3.2
3.9

108

Social work activities and associations

101

Other business service activities
All activities

4.2
2.3
4.8

97.7
89.3
86.4

4.1
2.1
4.1

22

Corresponding to component of equation (2)

⎡ X T ⎤
⎢ 177Sj ⎥
⎢⎣ ∑k =1 X TkJ ⎥⎦

⎡ X SjN ⎤
⎢ T ⎥
⎣⎢ X kJ ⎦⎥

⎡ X T ⎤ ⎡ X N ⎤
⎢ 177Sj ⎥ ⋅ ⎢ TSj ⎥
⎢⎣ ∑k =1 X TkJ ⎥⎦ ⎣⎢ X kJ ⎦⎥

Table 6 shows the main forward
linkages of primary agriculture. The
column F1 shows the fraction of
agriculture in the total cost of inputs used
by each listed sector. For example, in
milling and meat processing agricultural
inputs represent about 70% of total
costs; but part of this agricultural input
is imported. Imports of wheat and

other inputs used by the milling sector
accounted for approximately 48% of the
cost of all agricultural inputs. In contrast,
the domestic production of meat, milk,
wine, and pisco depends on 100% of
its agricultural input from domestic
sources. An interesting case is animal
feed production, where about 50% of the
cost of agricultural inputs is imported

30