The Value Chain of Agricultural Commodities and Food in Austria

Since Austria's EU accession the number of employees in the agricultural sector has been decreasing continuously. Employment remained stable or increased in the upstream and downstream sectors – especially in food retail. As shown in a model analysis, an expansion of demand for domestic food is accompanied by an increase in production in the agricultural sector and in the downstream processing sectors. This is associated with an increase in value added and employment in the upstream industries and the economy as a whole. The effects in the Länder are not equally strong due to structural differences.