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.