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Satellite Account for Food Balances. by Pratap Narain Consultant, FAO Rome July 2010. Contents. Satellite Account for Food Balances (SAFB)? Structure of SAFB Steps of compilation Sources of data Data validation Worksheets Concluding remarks. SAFB and SEAFA .

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Satellite account for food balances

Satellite Account for Food Balances

by

Pratap Narain

Consultant, FAO Rome

July 2010


Contents
Contents

  • Satellite Account for Food Balances (SAFB)?

  • Structure of SAFB

  • Steps of compilation

    • Sources of data

    • Data validation

    • Worksheets

  • Concluding remarks


Safb and seafa
SAFB and SEAFA

  • SAFB is part of the SEAFA which is based on the SNA

  • SNA consists of coherent, consistent and integrated set of macro-economic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules.

  • Accounts present in a consolidated way a great mass of detailed information, organised according to economic principles and perceptions, about working of an economy

  • Primary purpose for compiling the SEAFA is to link socio-economic databases relating to food consumption, labour force, etc. to the accounts for undertaking analytical studies.


Why satellite account
Why Satellite Account?

The SNA has suggested that satellite accounts may be compiled for:

(a) providing additional information on social concerns of a functional or cross-sector nature;

(b) using complementary or alternative concepts / classifications and accounting frameworks, when needed to introduce additional dimensions in the accounts;

(c) extending coverage of costs and benefits of human activities;

(d) analysis of data by means of relevant indicators and aggregates; and

(e) linkage of physical data sources and analysis to the monetary accounting system."


Satellite accounts for food balances safb
Satellite Accounts for Food Balances (SAFB)

SAFB has been establish by:

  • Creating a “food” sector by combining economic activities of crop, livestock, livestock products, minor forest produce and agro-industries production,

  • Establishing linkage between monetary data on expenditure on food with the physical data on quantity of food consumed & nutrient content of food.

    The concepts, definitions or classifications used are consistent with the main international statistical systems and standards


Structure of the safb
Structure of the SAFB

The structure is based on the SNA’s Goods and Services Account.

Supply = Food availability

=(commercial production + estimated own account production for self consumption + import + opening stocks) minus (exports + re-export + usage input for processed food + seed + feed + non-food usage + wastage + closing stocks)

Use = Apparent Consumption (Food)


Satellite Account for Food Balances

Integrated Account for Private

Non-financial Corporate Unit engaged

In crop, livestock, forest, fish & agro-industry

Production & Generation of Income account Household Unit engaged in crop, livestock, forest, fish & agro-industry

Domestic output

Non-food products

Crop & Livestock

Apparent consumption expressed in terms of Calories, Protein & Fat as well as in terms of quantity of food consumed and expenditure incurred

Food Products

Fish

+

Forest

Net Imports of food products

Agro - industry

Seed, feed, waste & Other items of intermediate consumption

Opening less closing Food balances

+

=

Rate of Fat per unit of food output

Net availability of food products from domestic production and imports

Rate of Protein per unit of food output

Apparent Food Consumption in quantity and value terms

×

Rate of Calories per unit of food output




Data validation
Data validation

Compilation of SABF, like SNA, uses data from different sources. For having reliable results, it is necessary to check their internal consistency and coverage. The task of data validation includes:

  • Temporal and cross section checking of primary data

  • Consistency at macro-level using SEAFA

  • Consistency of quantity & value data of output & input of agro-industries, import, re-export and export data,

  • Consistency of quantity and value of input with the quantity and value of output data for agro-industry at meso-level,

  • Consistency of quantity with value data of individual items of food in the supply & use framework


Data validation1
Data validation

Apart from compiling and analyzing economic accounts for agriculture, following approach is adopted to validate other data :

Check I: Compile unit value for each item and compare the same with the price data obtained from other sources

Check 2: Compare quantity and value of output of agro-industry with the quantity and value of input at 4-digit level to check internal consistency

Check 3: Compile S-U data for each item and review imputation/correction process to improve intra and inter sector consistency of the data


Worksheets
Worksheets

Worksheets to compile SEAFA and SAFB are divided in four broad groups:

Group 1: Workbooks containing base data on crop, livestock, fishery, forest and agro-industry and foreign trade data

Group 2: Worksheet containing structural data on classification of items of food, wastage rates, trade & transport margins and content of food in terms of energy, protein and fat

Group 3: Worksheet presents final validated data on items on food originating from crop, livestock, fishery, agro-industry activities & foreign trade using SAFB codes

Group 4: Worksheet to compile the SAFB


Group 1 worksheet
Group 1 worksheet

  • Contains basic data on quantity and value of output & intermediate consumption as well as data on foreign trade

  • Check 1 and 2 are applied to the basic data

  • Value of output and intermediate consumption are at purchaser’s prices

  • Quantities of exports and re-export are subtracted from quantities of production and import and balance is valued at purchaser’s prices

  • Items are assigned ISIC-CPC and HS codes


Group 2 worksheet
Group 2 worksheet

  • A SAFB has been created for all items of food for human consumption

  • The list is based on the items of food in the “Classification of Individual Consumption According to Purpose (COICOP)” and items included in the FAO’s list of “nutrient content of items of food”

  • The list covers about 1100 items

  • The SAFB code classification has 9 main groups, 40 sub-groups and 321 items.

  • Correspondence has been developed between SAFB codes with the ISIC_CPC & HS Codes and FAO list


Group 3 worksheet
Group 3 worksheet

  • Worksheet uses SAFB codes aggregated at the second (sub-group) level of classification showing the 40 items

  • Worksheet uses “sum if” function given in the excel sheet

  • Includes final validated data on quantity and value (purchaser’s prices) of items on food originating from crop, livestock, fishery, agro-industry activities as well as on items of imports, export & re-export

  • Simple totals of each column is checked to verify that all the items have covered and there is no mistake in the coding scheme used


Group 4 worksheet
Group 4 worksheet

  • This worksheet compiles the basic “supply and use” account taking basic data from the Group 3 worksheet and structural data on trade & transport margin, wastage, non-food use and nutrient content of food using simple arithmetic and “sum if” function

  • The worksheet includes apparent consumption in quantity and value terms as well as in nutrient contents

  • The data is generated for 40 items and inter-industry consistency is checked using SAU equation. If necessary imputation and correction are reviewed

  • Final data are aggregated in 9 main group to present SAFB


Concluding remarks
Concluding remarks

The SAFB data

  • Are based on establishment approach in comparison to FBS data which are based on individual items of food products providing additional possibilities for improving reliability

  • Uses “Classification of Individual Consumption According to Purpose (COICOP)” and hence can be directly compared with the data on consumption expenditure of households, if available from independent survey,

  • SAFB data are available in terms of quantity consumed, value of quantity consumed and in terms of nutrients. This makes the data more useful for dynamic analysis.


Concluding remarks1
Concluding remarks

From the SAFB data it is also feasible to have

  • Clear views of import dependence for each category of food products

  • Production efficiency of different classes of establishments (i.e. household, private corporate sector and public sector).

    The SAFB data are likely to be more realistic as the system uses latest available inter-industry coefficients instead of fixed format of commodity tree as used by FBS.


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