Measuring and comparing economic resilience within the UK agri-food and drink industry – February 2020

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Sector: Competition, Regulation and Business
Client: Food Standards Agency (FSA)
Published: 18 February, 2020
Document type: Report 
Tagged: quantitative analysis

London Economics were commissioned by the Food Standards Agency (FSA) to investigate how the UK agri-food and drink industry responds across the supply chain to a broad set of economic risks and challenges. How well each sub-sector in the industry is able to respond to these challenges reflects how resilient the sub-sector is.

 

The study develops methods for comparing notions of economic resilience across different sub-sectors of the agri-food industry using publicly available data from 2000 to 2017. The study produces two complimentary measures of resilience for each sub-sector of the agri-food and drinks industry:

  • Shock absorption: the ability of a sector to absorb or neuter the adverse effect of a shock; and
  • Shock counteraction: the ability of a sector to recover quickly from a shock.

The following sector are identified as being the most resilient: animal production; growing of crops; the food wholesale sector; processing and preserving of meat and production of meat products; and manufacture of other food products. These sub-sectors manage to dampen the initial impact of a common negative shock and to recover more quickly to pre-shock levels.

 

The full report is available here.