Standardization process of the FBS:Examples of various commodities

James Geehan,Statistician, FAO Rome

Recap: Standardization

• A typical Supply Utilization Account can contain information for up to 1,500 commodities.

• While this is useful for a comprehensive picture of the a country’s food supply, the amount of data is unmanageable and difficult for practitioners and policy makers to analyse.

• The solution is to reduce the list of commodities captured within the SUA to a shorter, standardized, commodity list and presented in Food Balance Sheet format.

• Standardization is the process of converting original quantities in the SUA back into their primary commodity equivalent

• For example, flour of wheat back into the equivalent wheat quantity; or skimmed cow milk back into the equivalent whole cow milk quantity.

Supply Utilization Accounts

(1,500+ commodities)

Standardization ofcommodities

Food Balance Sheets(Approx. 100 primary commodities)

Standardization example – 3 commodity groups: Wheat, Other Cereals, and Milk

Step 1:• Reduce the list to the originating commodities. Sum the calorie and nutrient values of derived and origin commodities.

Standardization example – Wheat, Other Cereals, and Milk

Step 2: The Input to derived commodities are subtracted from Processing in the origin commodity. Production of derived commodities is not converted back, to avoid double counting.

Standardization example – Wheat, Other Cereals, and Milk

Step 3: For all other SUA elements in derived commodities, quantities are converted back to their origin commodity using the reciprocal of the extraction rate.

Standardization example – Wheat, Other Cereals, and Milk

Step 3:• For all other SUA elements in derived commodities, quantities are converted back to their origin commodity using the reciprocal of the extraction rate.

Standardization example – Wheat, Other Cereals, and Milk

Example: Imports of Flour of Wheat soft back to Wheat soft

Extr. rate of Wheat soft to Flour of Wheat soft = 80%Reciprocal = 1 / 0.8 = 1.25

Imports of Flour of wheat soft = 45 * 1.25 = 56Imports of Wheat soft = 400

Total import of Wheat soft (including derived commodities) = 456

Step 3:• For all other SUA elements in derived commodities, quantities are converted back to their origin commodity using the reciprocal of the extraction rate.

Standardization example – Wheat, Other Cereals, and Milk

Example: Imports of Flour of Wheat soft back to Wheat soft

Extr. rate of Wheat soft to Flour of Wheat soft = 80%Reciprocal = 1 / 0.8 = 1.25

Imports of Flour of wheat soft = 45 * 1.25 = 56Imports of Wheat soft = 400

Total import of Wheat soft (including derived commodities) = 456

Step 3:• For all other SUA elements in derived commodities, quantities are converted back to their origin commodity using the reciprocal of the extraction rate.

Standardization example – Wheat, Other Cereals, and Milk

Example: Feed of Skimmed cow milk back to Cow milk whole

Extr. rate of Cow milk whole to Skimmed cow milk = 96%Reciprocal = 1 / 0.96 = 1.04

Feed of Skimmed cow milk = 36 * 1.04 = 38Feed of Cow milk whole = 0

Total Feed of Cow milk (including derived commodities) = 38

Step 3:• For all other SUA elements in derived commodities, quantities are converted back to their origin commodity using the reciprocal of the extraction rate.

Standardization example – Wheat, Other Cereals, and Milk

Example: Feed of Skimmed cow milk back to Cow milk whole

Extr. rate of Cow milk whole to Skimmed cow milk = 96%Reciprocal = 1 / 0.96 = 1.04

Feed of Skimmed cow milk = 36 * 1.04 = 38Feed of Cow milk whole = 0

Total Feed of Cow milk (including derived commodities) = 38

Step 3:• For all other SUA elements in derived commodities, quantities are converted back to their origin commodity using the reciprocal of the extraction rate.

Standardization example – Wheat, Other Cereals, and Milk

Example: Imports of Flour of Other cereals back to Other cereals

Extr. rate of Other cereals to Flour of Other cereals = 80%Reciprocal = 1 / 0.80 = 1.25

Imports of Flour of other cereals = 35 * 1.25 = 44Imports of Other cereals = 0

Total import of Other cereals (including derived commodities) = 44

Food Balance Sheet example

Thank you for your attention