Food chain total factor productivity - updated 2013 final edition
The total factor productivity of the United Kingdom food chain is examined within the four main food industry sectors and compared to the wider economy. Total factor productivity relates the volume of output to the volume of labour, capital and purchases, and so can provide a measure of efficiency. Total factor productivity provides a comprehensive picture of growth. Presented as an index, it relates major inputs of labour, intermediate purchases and capital consumption to outputs (turnover). There is a practical upper limit on the quantity of food that people in the UK want to consume but increases in outputs can be achieved by increases in the quality of foods (value added) and by increases in exports. Increases in total factor productivity can be achieved through increases in outputs and/or by reductions in inputs.
