Agri-food value chains and the global food dollar: The role of trade and services

The evolution of agricultural value chains is influenced by numerous societal and economic dynamics, including trade and servicification of the economy. In this paper we analyze margins along agrifood value chains, proxied by the share of the Global Food Dollar accruing to farmers, controlling for differences in GDP and economic development levels. International trade and the increasingly diverse roles played by services in upstream and downstream activities shape the distribution of the value-addition generated along the value chains. Trade regimes and services that favour domestic processing of agricultural products increase the share of consumer food expenditures returned to farmers.