5.2 Production and trade (original) (raw)
Worksheet(s) in the FABLE Calculator:
⇒ PRODUCTION
⇒ TRADE
⇒ 5_feas_livestock
⇒ 6_feascrops
The main indicator related to production is the total production value of the agricultural sector in local currency and US dollars in 2000. Prices are not generated by the FABLE Calculator. Historical producer prices from FAOSTAT are currently used to compute future production value. With constant prices over time, variation of the total production value over time is only caused by changes in the production quantities and changes in the share of products of different prices in the total production (composition effect). Targeted, feasible, and historical production values are displayed on the figure.
The main indicator related to trade is the net trade balance of the agricultural sector. It is computed as the sum of all exported quantities times historical export prices minus the sum of all imported quantities times historical import prices. It generally does not match national statistics on the value of the agricultural trade balance; it includes more processed products with a usually higher unit price. This indicator is very coarse, but it still gives an idea of the evolution of the trade balance over time (i.e. if the agricultural trade balance deteriorates or improves). An agricultural trade deficit is not necessarily negative, but it can lead to a broader discussion about how the deficit is compensated by either the trade surplus in other sectors, increased debt, or increased foreign investment in a given country.