Share of food, beverage, and tobacco subsector value added in total value added of manufacturing sector

Definition

The share of agro-industry value added in total value added of the manufacturing sector. Value added is calculated as the sum of gross manufacturing outputs minus the sum of intermediate inputs used in production. The manufacturing sector includes all activities related to the physical or chemical transformation of materials, substances, or components into new products.

Relevance

This indicator provides a measure of the relative importance of agro-industry in a country's manufacturing. Ago-industry's share of value added is higher in lower-income countries, where food processing and trading provide valuable off-farm employment opportunities when the broader manufacturing sector is still in the early stages of growth.