Handbook on supply and use Table Chapter 8: Some problematic areas Presented by : Hubert V. GBOSSA Expert in national accounts
8. 1 Production of goods for own consumption • Crops • Livestock – The example of chicken and chicken meat is confusing. I suggest an example base on cattle and cattle meat. An illustrative example is proposed below. • Buildings
8. 1 Production of goods for own consumption Case of cattle as illustrative purpose • The size of the cattle herd at the beginning of the year is 2000 heads and at the end of the year it grows up to 2100 heads. A recent livestock survey provides with the following data: Ø Exploitation rate of the herd 10 %; Ø Average weights of the animals exported or taken along to slaughter 200 kg Ø yield of cattle to meat 70%.
Livestock an illustrative example • Note that the tradesmen of cattle buy them on average of 60 dollars per cattle and convey them to the points of sale where they take an average margin per animal of 20 dollars; a tax of 2 dollars per animal is also perceived by the Government when it is sold in the local market or exported. • Note also that the cattlemen took for their own consumption 50 animals and they imported 10 animal of an improved race at 100 dollars per animal which is exonerated of taxes; they are to be integrated to the cattle herd at the end of the year.
Livestock an illustrative example • Do notice also that the production of cattle comprises two items: – (i) Exploited growth (Production A) that production is obtained by multiplying the average number of animal during the year by the exploitation rate; – (ii) Non- exploited growth (Production B) that is the production measured by the growth of the herd out of which 67% is supposed to be the Gross Fixed Capital Formation and 33% the change in inventories. • It is asked to draw up the balance of cattle in number of animals as well as in value and to give the production in quantity of cattle meat in this economy.
Livestock an illustrative example The production of cattle meat is: 135 x 200 kg x 0, 70 = 18900 kg
8. 2 to 8. 6 paragraphs • Regarding item 8. 4 “Trade margins” reconciliation should be made with the production of the branch trade completed by the total production of trade from other non trade branches. This gives opportunity to refine either trade production or trade margins. • Regarding item 8. 5 “transport costs” If the breakdown of the product classification that is used makes it easier to distinguish the production of transport of goods and other transport (person), this may help facilitate the reconciliation with the transport costs in the SUT. • Paragraph 206 of item 8. 6 meets my approval particularly. That is to distinguish a position for "SIFIM" in the production of the banks and to clarify its uses in the SUT. This should be reflected in the make matrix.
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