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Abstract

The UK post-farm gate food chain comprises manufacturing, wholesaling , retailing and catering. Current turnover is around £250 billion per annum. Total factor productivity measures the ratio of inputs to outputs. However, most studies have only included the marketable inputs and outputs within the system. Following criticisms of the negative effects of the food chain this paper adopts a n index based approach to measuring Total Social Factor Productivity, which includes the major externalities within the food chain. Generally, whilst TFP growth rates are low over the period 1998-2002, these have reduced even further when negative externalities are included.

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