The value of food resources

Abstract

Purpose

The purpose of this paper is to help understanding the value of food resources (FRs). This may raise global awareness on their importance in macro- and micro-economics.

Design/methodology/approach

The relationship of FRs with human life was analyzed through literature review to illustrate their real value. Association of FRs production with the probability of becoming a high income country was estimated by analyzing the relevant data published by FAOSTAT, World Bank and United Nations to illustrate their value in macro-economy. Analyzing the interrelationship of prices with their attributes through literature review and the correlation of the relevant data published by FAOSTAT and OECD was undertaken to create a mathematical model for pricing FRs.

Findings

The real value of FRs is unaccountable, which makes their economic value (price) be not always determined on market. Increase in the probability of becoming a high income country with increase in FRs production indicates that their shortage may bottleneck macro-economic development. A mathematical model has been created for estimating the economic value of FRs.

Practical implications

These findings are applicable for managing (or administrating), pricing or evaluating FRs, analyzing their economic status, developing business and predicting tendency in micro-economy. They are also vital for managing or developing macro-economy. The findings should be useful for farmers, food companies, governmental agents, individuals, etc.

Originality/value

This is the first to report these findings. This is a significant progress in FRs research and valuable for education.

Citation

Wu, W. (2015), "The value of food resources", British Food Journal, Vol. 117 No. 1, pp. 431-442. https://doi.org/10.1108/BFJ-09-2013-0248