|Sector:||Competition, Regulation and Business|
|Client:||Food Standards Agency (FSA)|
|Published:||18 February, 2020|
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.