Value Adding in the Agri-Food Value Chain

The objectives of this manuscript are threefold; to provide a financial, and thus formal, definition of value added; measure value addition by firms across the four nodes/stages of the value chain; and third to test hypotheses as to the drivers of value creation that differ across the four nodes.First was defined value creation/
adding, and then we estimate the economic value added for 454 firms. We validate our findings by creating and employing three additional value creation measures – the modified economic value added, the creation or destruction of value, and the persistence of value creation. Finally  value creation at each node of the value chain was estimated, the relative differences among firms and nodes were measured, and a model measuring the drivers of value adding were estimated.