More insight into export earnings per business

To produce output, input is often required. These imports can also be split between the supplier industry. For example, a table for export of a table can be imported (then it can fall under re-export), or table legs and table top can be imported and screwed together by a Dutch manufacturer, or the wood is imported and the rest of the production process takes place in the Netherlands. These different input products (table, table parts, wood) can be imported by different industries. In this way, the imports required for export can also be divided by the supplier industry.

In this article we discuss earnings, imports and employment related to exports of a particular industry through several examples. First, we discuss a process that leads to the export of veal, we will leave out the numbers here. We then discuss paper industry exports from a portion of the StatLine table. Finally, we provide an example of an analysis that can be done using this StatLine table.

Example: export of veal

A whole process usually takes place before the export of a particular product. This process can take place both in the Netherlands and abroad. We will discuss such a process using an example.

Dutch wholesalers export veal, for example. Veal is meat from (beef) calves that have lived for a maximum of 8 months (or 12 months for pink veal). During these 8 months, there are different sectors that profit from this calf, and when the veal is finally exported, these revenues are allocated to the export. If the wholesaler realizes this export, then this is earnings from the export of the exporting wholesale industry.

Step 1

The calf was born on a Dutch dairy cow, if the calf is male, the dairy would like to sell the calf. The calf is sold to a calf farm that serves the dairy farm and perhaps also a cattle carrier.

Step 2

The calf is cared for in the calf farm. In the first months or even the whole 8 months, it gets milk (often made from milk powder) in addition to solid food. This calf farm does not produce the food itself, so other sectors make money from this, for example the dairy farm for the milk powder. Imported soybeans are often used as solid feed for cattle. An animal feed manufacturer will then use imported soy and produce animal feed and sell it to the calf farm. Calf farming also uses water and energy. In addition, the Quality Guarantee Fund for the Veal sector will carry out inspections (this falls under sector 71 supervision and inspection).

Step 3

When the calf is eight months old, it goes to a slaughterhouse. An employment agency provides workers for the slaughterhouse. The calf must also be transported to the slaughterhouse. And also in this step there will be quality checks.

Step 4

Then the meat must be packed, which serves the packaging industry. Finally, the wholesaler exports the meat. This can be a service from an external transport company if the wholesaler does not have its own transport options. If it is a foreign transport company, the transport costs are considered as imported services for exporting the veal.

This example shows that many different industries can profit from exporting a particular product from a particular industry. The income from the calf piece is therefore distributed among many different players. In addition, employment is created in almost all of these different sectors. Employment is measured in the total number of years of work in the supplier sector for the exports of the exporting sector. In addition to animal feed ingredients (such as soya), the imports required to export veal may also include e.g. petrol for transporting the animals.

Example: exports from the paper industry

The paper industry’s distribution of the added value of exports can be seen in the StatLine table. The paper industry exports products such as paper, cardboard, pulp and cigarette rolling paper. The table below shows the five sectors that benefited the most from paper industry exports in 2021. The majority of value added and employment from paper industry exports remains within its own sector. The wholesaler also made money from these exports, for example by providing packaging materials for the export of the paper. These packaging materials come from the Netherlands or have been imported, so the wholesaler may also have import costs in connection with exports from the paper industry. Wholesale jobs are also involved in the export of the paper industry, such as unpacking packaging materials, delivering the product or overhead. The third largest supplier sector (in terms of value added) provides services: legal advice and management consultancy. Followed by staffing agencies and job placement, this is an industry that profits from the exports of almost all industries. Logically, the chemical industry also made money from exports from the paper industry, which supplies goods such as bleach and ink to the paper industry.

Table 1: The paper industry’s export earnings and employment, 2021
Supply sector Added value Employment opportunities Input
million euros dzd fte million euros
The paper industry 1660.9 11.5 1878.5
Wholesale and trade brokerage 269.0 1.7 50.7
Legal and managerial advice 146.3 1.4 51.4
Employment agency and job agency 68.4 1.5 2.0
Chemical industry 58.9 0.2 105.4
Property letting and trading 47.6 0.1 2.0