The changing interdependence and structure of United States food and kindred products industry and the foodservice industry, 1977-1991

Hailin Qu, Purdue University

Abstract

In 1991, about 45 percent of all U.S. spending for food went for food purchased and consumed away from home. However, the data related to recent food quantities, prices, or expenditures for the major food products used in the U.S. foodservice industry have not been available in sufficient detail for purpose of either (1) assessing the impacts of the foodservice industry on the total market for food and kindred products industries, or (2) measuring the relative contribution of food and kindred products to the total inputs into the foodservice industry. This study developed a new source of data to measure the changing interdependence and structure of various food and kindred products that comprise foodservice industry purchases. It also measured the growing importance of direct and indirect impacts of the foodservice industry on food and kindred products industries. The 1991 data are projected based on Input-Output (I-O) data for 1977 and 1982 from the U.S. Department of Commerce and for 1985 from IMPLAN data from the U.S. Forest Service. The results show that the foodservice industry is growing in importance as a user of various food and kindred products, and that food and kindred products continue to constitute the major source of inputs into the foodservice industry. The foodservice industry accounts for a substantial proportion of final consumer demands for many important food commodities, including meat, fish, dairy products, and liquor. However, the proportion of direct inputs of food and kindred products in total has diminished as a share of total direct intermediate inputs while the importance of value added has increased. Labor and indirect business taxes constitute the growth sectors of value added.

Degree

Ph.D.

Advisors

Hiemstra, Purdue University.

Subject Area

Business costs|Agricultural economics

COinS