Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

An Analysis of Food Consumption Patterns Using
Input-Output Tables1
By
Hiromi Tokoyama*

Abstract

This paper attempts to provide a comprehensive description and systematic analysis of
the changing patterns of Japanese food consumption during the period of 1963-1991 and also
tries to develop methods for the analysis of consumer's behavior using input-output tables.
In Japan, food consumption patterns have undergone tremendous changes over the past
three decades. These changes are analyzed largely through data from the Family Income
and Expenditure Survey. Input-Output Tables can be used to shed light on certain aspectsof food consumption which are not readily apparent from this survey. Total contributions,
including indirect effects, of primary industries, food processing industries, distributive
services, and restaurants, to food consumption expenditures are estimated respectively.
Shares of domestic products and imports in the contributions of primary industries andfood processing industries are also estimated.

1.

Introduction

Food consumption in Japan has gone through tremendous changes both in quantitative andqualitative terms since the end of the World War II. For several years following the War, thelevel of food consumption was only enough to satisfy the minimal nutritive requirements. During
the period of rapid economic growth in the 1960s and 1970s, however, remarkable shifts fromstarch to protein foods took place due mainly to the rise in per capita income. Among protein
foods, fish meats were replaced with animal meats, dairy products and eggs.

These changes

are usually referred to as the Westernization of food consumption patterns. The average calorie
intake per capita per day increased from 2104 kcal in 1955 to 2287 kcal in 1971.
Later, as Japanese economy overcame the two oil crises and reached the stage of relatively

slow and stable growth, food consumption also reached the period of maturity. Changes in foodconsumption became slow. However, there are still some obvious trends in it2.
There are a number of studies on food consumption patterns in Japan3.
use the data from the Family Income and Expenditure Survey.

Most of them

The following section gives abrief explanation and major points of one of our recent studies on changes in food consumption
patterns based on the Family Income and Expenditure Survey. The third section discusses thecharacteristics of Input-Output Tables which are available in Japan for the analysis of foodconsumption patterns. The fourth section provides an estimation of the share of imports in the
total expenditure for food and beverages and shows that the original contribution of imports
is not more than 10% in terms of money value.

The fifth section compares changes in foodconsumption patterns shown in Input-Output Tables with changes in the Family Income andExpenditure Survey. The final section summarizes the major findings of this study.
Manuscript received May 24, 1993. Revised August 23, 1993.

* Japan Women's University

1This is a revised edition of Tokoyama, H.[9]2See Fujita, N. [l] and Morishima, M., Aita, T. and Nakagawa, M.[4]3For example, see Higuchi, T.[2]An Analysis of Food Consumption Patterns Using Input-Output Tables

Fall

Butter 2

Fluctuate

Rise

Canned meat 1
Butter 3,4

Decrease

Beef 1
Pork 5

Canned meat 4

Ham4,5
Powdered milk 2

Butter 1
Canned meat 3

Fluctuate

Total

Milk 2

Powdered milk 3

Chicken 5

Eggs2,3,4

Milk3,4

Cheese 483

13

Eggs 5

Bacon 1
Sausages 3

Pork4

16

Powdered milk 4,5

Eggsl

Cheesel,2Porkl,2,3
Increase

Source:Bacon 5

Sausages 1,2

Powdered milk 1

Milk 1

Beef2,3

Ham 2,3

Chickenl, 2,3,4

Bacon2,3,4Canned meat2

Milk 5

Cheese 3,5Sausages 4,5Butter 5

Yogurt 5
Total

Minced meat 5

Ham 1

32

Beef 4,5
18

26

17

61

The Family Income and Expenditure Survey (each year).

Note: The attached number shows the sub-period.

1

1963-19682

1981-1986

1969-19743

1975-1980

1987-1991

Figure 1: Changes in per Capita Consumption and Prices by Food ItemsiAn Example(Meats, Dairy
Products and Eggs)

2.

An Analysis of Food Consumption Patterns Using the Data fromthe Family Income and Expenditure Survey

To examine the changes in food consumption patterns, annual per capita consumption was
calculated for more than one hundred items of foods for the years 1963-1991.

The data on

family size and annual average amount of food consumption for all households were taken fromthe Family Income and Expenditure Survey (each year). The whole period was divided into fivesub-periods ; 1(1963-68), 11(1969-74), 111(1975-80), IV(1981-86), and V(1987-91).
For each sub-period, the food items were classified into three groups: 'increase', 'decrease',and 'fluctuate' according to the changes in per capita consumption. Similarly, the changes inprices are classified into three groups .'rise','fall', and 'fluctuate'. The quantity of each consump

tion item is measured in physical terms, and prices are respectively deflated by the price-index

representing each of the twelve food categories(by middle classification).
The matrix prepared for food items in the category Meats, Dairy Products, and Eggs isshown in Figure 1. Similarly, eleven other matrices are obtained for other groups of foods suchas Cereals, Fishes, Vegetables and etc.

Figure 1 consists of 61 cases (14 items for 5 sub-periods, of which 9 cases are lacking).
Per capita consumption increased for 32 cases, decreased for 13 cases, and fluctuated for theremaining 16 cases without any definite upward or downward trends. In 13 cases placed in thebottom-left cell and 7 cases placed in the top-right cell, changes in per capita consumption are
consistent with the corresponding changes in prices. In the other 25 cases, however, changes inper capita consumption do not coincide with price changes. These 25 cases need to be accounted
for by some factors other than price effects.

Many factors have been pointed out to interpret changes in food consumption patterns4.
4 See Tokoyama, H. and Egaitus, F. [7].

84

Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

The major factors, other than the price effects, can be categorized into 1) consumers' preference

for higher quality foods (Q), 2) consumers' preference for more convenient types of foods (C), 3)
trends towards diversification of the menu (D), and 4) increasing health consciousness (H). Thesefour factors are given clear definitions, as shown below, which can be used as the operational
indicators to classify each case of change in per capita consumption unequivocally.
The shifts towards higher quality foods are mainly induced by the increase in incomes. This

category includes three sub-categories5.
Ql: A shift towards foods of higher unit prices within the same item.

A typical case is the shift from low-quality/low-price rice distributed by the Government Food
Agency to high-quality/high-price rice distributed by commercial traders.
Q2: A shift towards foods of higher unit prices within a group of similar items.

An example of this category is a move from sardines (which are cheep in Japan) to yellow-tail(which is more expensive).
Q3: A shift towards foods with higher unit costs per energy content.

Prices are not comparable among different items of foods, but unit costs per energy content

can be compared. The shift from cereals to meats is an example.

The shift towards more convenient types of foods is induced by the rise in the opportunity
costs of home-cooking labor. This includes two sub-categories.

Cl: A shift towards foods which require less cooking time.
For example, fishes and vegetables for boiling have been replaced by raw fish for sashimi andsalad vegetables.

C2: Substitution of household cooking by commercial cooking.

The greater use of cooked or semi-cooked foods and more eating out are two examples in thissub-category.

Diversification is derived from the rise in income, changes in relative prices of foods, changes
in consumers' preference, the entry of new products and other changes on the supply side. It
can be divided into three sub-categories.
Dl: A shift from 'large quantity consumption of few items' to 'small quantity consumption ofmany items' of foods.
A typical example is the case of tea.

Traditionally green tea dominated in Japan.

Now, aconsiderable amount of coffee and black tea is consumed side by side with a decreased
amount of green tea.

D2: The entry of new types of foods.

Tropical and other new varieties of fruits and vegetables from abroad are added to the Japanesediet. Food processing industries have also made a marked contribution to widening themenu by providing a variety of new products.

D3: Product differentiation in foods.

5 Characteristics of sub-categories are illustrated in examples cited in Tokoyama, H. and Egaitsu, F. [7], [8].

An Analysis of Food Consumption Patterns Using Input-Output Tables

85

Table 1: Changes in per Capita Consumption of Foods:Shares of Increase, Decrease and Fluctuation

Increase

Decrease

Fluct.

I

46.5

19.3

34.2

100.0

II

34.9

22.5

42.6

100.0

III

23.3

27.1

49.6

100.0

IV

20.3

37.3

42.4

100.0

V

16.7

39.1

44.2

100.0

Total

Source: Prime Minister's Office, Annual Report on Family Income and Expenditure Survey, each year.

Note:l) Increase, Decrease, and Fluctuate respectively shows the percent of food items of which per capita
consumption increased, decreased, and fluctuated through each sub-period.

2) Sub-periods are as follows.
I 1963-1968, II 1969-1974, III 1975-1980, IV 1981-1986, V 1987-1991

3) Total number of food items is;
114 for I, 129 for II, 129 for III, 118 for IV, 138 for V

There are many examples representing this category with respect to beer, instant noodles, hamand sausages, and other processed foods.

The last category is the choice of foods affected by health consideration.

This category

has gained importance in recent years because of the recent increase in adult diseases and thenumber of aged people. It includes two sub-categories,

HI: Choice of foods from the nutrition point of view.

A decline in the consumption of foods which have high sugar or salt content is a representative
case in this sub-category. A switch from butter to margarine is another example.

H2: Choice (avoidance) of foods which are believed to be good (bad) for health.
In Japan, traditional foods such as nori (seaweeds), natto (fermented soybeans) and umeboshi(pickled Japanese apricot) are widely believed to be good for health.

Consumption ofthese foods has increased.

The cases tabulated in the twelve matrices were examined with respect to the four categories:
Q, C, D, and H. The results were classified as shown in Table 1 and Table 2.
Table 1 shows the shares of food items of which per capita consumption increased, decreased

and fluctuated through each sub-period. While the share of 'increase' declined sharply in recent
years, the share of 'decrease' was on a rising trend. The share of 'fluctuate' stayed around 40%
since the second sub-period.

Table 2 shows the percentage shares of the cases examined by the above-mentioned four cat
egories. Over the whole period, on the average, convenience, quality, diversification and healthconsciousness accounts for 32%, 23%, 19% and 14% of the cases respectively. The remaining
12% do not fall in any of the four categories, but more than half of them are explained bychanges in relative prices.

Consumers' preference for higher quality foods played an important role in the earlier subperiods when income rose rapidly, but its role declined in the fourth and fifth sub-periods.

Health consciousness gained significance in recent years.
and diversification has also increased recently.

The respective share of convenience

86

Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

Table 2: Changes in per Capita Consumption of Foods:Shares by Categories

Quality

Conveni.

DiversHealthOthers

Total

I

37.5

29.5

14.8

8.0

10.2

100.0

II

29.5

28.4

15.9

10.2

15.9

100.0

III

23.5

37.6

22.4

11.8

4.7

100.0

IV

15.1

31.4

20.9

18.6

14.0

100.0

V

10.1

32.6

21.3

20.2

15.7

100.0

Total

23.2

31.9

19.0

13.8

12.2

100.0

Note: 1)

Cases which meet the definitions of more than one categories are counted
in duplication.

2)

3)"Others" are cases which do not meet the definition of any categories.
Cases in which per capita consumption fluctuates are not included.

The preference for higher quality foods lost its significance by the early 1980s because low
quality foods have mostly disappeared. Then, convenience, diversification and health conscious
ness increased their significance in dietary choices. Through all the sub-periods, the four noneconomic factors have played larger roles than the direct economic factors such as income andprices in explaining the changes in food consumption patterns6.

3.

Food Consumption Patterns as Shown in the 1985 Input-Output
TablesIn Japan, the Ministry of Agriculture, Forestry and Fisheries(MAFF) prepares specific inputoutput tables (MAFF Input-Output Tables) for the analysis of agribusiness industries.

The

MAFF Input-Output Tables consist of 100 intermediate sectors, of which 64 concern agriculture,

fisheries and food processing industries, 6 value-added sectors and 7 final demand sectors. They
are available for every five years since 1970.

In the 1985 MAFF Input Table, the amount of inputs to productive sectors as well as to final
demand sectors are shown by their origins, domestic or foreign. The column on consumption

expenditures of households shows the breakdown of consumption by industrial sectors. The column, however, dose not show the exact amount paid by consumers since in the Input Table all
the amount are shown in producers prices. Distributive trade margins and domestic transportation fees should be added to make up the differences between producers and purchasers prices
in order to make these data comparable to the data from the Family Income and Expenditure
Survey.

The necessary additional information is obtained from the Output Table. The Output Table

shows the appropriation of the products of each industrial sector to materials for intermediate
sectors and to consumption and investments for final demand sectors at purchasers prices.
For example, according to the 1985 MAFF Output Table, the output of the Vegetable sector

appropriated for household consumption amounts to ¥ 2368.8 billion, which is equal to thehousehold consumption expenditures for Vegetables. On the other hand, according to the Input
Table, the household consumption of Vegetables consists of domestic products amounting to¥1387.7 billion and imports amounting to ¥9.9 billion, totaling ¥ 1399.6 billion. The difference

between ¥2368.8 billion, in the Output Table and ¥1399.6 billion in the Input Table makes up
6Senauer, B. [6] points out similar factors about changes in food consumption patterns in the United States.
Also see Popkin, B.M., Guilkey, D.K., and Haines, P.S.[5]An Analysis of Food Consumption Patterns Using Input-Output Tables

87

the total distributive margins, of which ¥915.0 billion are trade margins and the remaining¥54.1 billion are transportation fees.

Table 3 shows the breakdown of household expenditures for foods and beverages from the1985 MAFF Table. The first to the fourth columns show the proportions of domestic products,
imports, trade margins and transportation fees in the total household expenditures for the
output of each sector. The total amount of household expenditures and their percentage sharesby sectors are shown in the fifth and the sixth column respectively.

According to Table 3, the total household consumption expenditures in 1985 amounted
to ¥188.7 trillion, of which ¥47.4 trillion (25.2%) are for foods and beverages. The total
expenditures for foods and beverages are divided into: 1) the consumption of primary products
from agriculture and fisheries (row 1 to 12), 2) the consumption of outputs from food processing
industries (row 13 to 39), and 3) the eating out at restaurants. The relative shares of the aboveare 13%, 68%, and 19% respectively. Food processing industries have a dominant share. The
share of eating out is larger than the share of agriculture and fisheries.
As mentioned above, the food processing industries include Grain milling (rice) and Slaughtering (fresh meats). If these two groups of products are transferred to primary products, therelative shares of primary industries, food processing industries, and restaurants will become
25%, 56% and 19% respectively.
The relative shares of domestic supplies, imports, and distributive margins in total expenditures for foods and beverages are 72%, 2% and 26% respectively. In the case of Fresh fish, Freshfruits, Other processed marine and agricultural products, more than 10% are imports. In thecase of restaurants, imports(1.7%) represent expenditures made by Japanese overseas travelers.
In total, imports account for less than 2%. The reasons for this small share of imports will be
discussed in the next section.

Relatively high share of distributive margins(25-plus%) characterizes the consumption expenditure for foods and beverages in contrast to other categories of consumption expenditures.

Especially in the case of primary agriculture and fisheries, trade margins take up 41.2% of thetotal amount of consumption. Only two other sectors show higher shares of trade margins in

consumption - Textile products(48.3%) and Other chemical products such as Medicaid and Cosmetics(47.2%). In contrast, the output from food processing industries (except Tobacco which

has a specific distribution route) has the lowest share for trade margins(27.1%).
Transportation fees account for more than 2% of the total consumption expenditures forboth outputs from primary agriculture and fisheries, and food processing industries, comparedwith around 1% for other consumer goods. A relatively high share of transportation fees forfoods and beverages results from special ways of delivery such as frequent-small-portion delivery
and delivery by refrigerator vans for keeping foods afresh.
The analysis so far refers only to household consumption as shown in the 1985 MAFF Input-

Output Tables. The total food consumption includes non-household expenditures which accountfor about one-seventh of the total expenditures for foods and beverages. This item covers thefood consumption related to productive activities of firms and consists of completely different
components from household food consumption.

Lunches on business and other expendituresat restaurants account for 87%, foods as gifts account for 11%, and primary agricultural andfisheries products account for only 2%. This is the reason why non-household expenditures are
excluded from the analysis above.

4.

The Share of Imported Foods and Beverages

Imported food stuffs are not frequently purchased directly by final consumers. However, they arewidely used by food processing industries. Similarly, a large amount of outputs from primary
agriculture and fisheries are used by food processing industries.

Primary industries are the

88

Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

Table 3: Breakdown of Private Consumption Expenditures for Foods and Beverages by Sectors
Domes.Pro'otatos and'ulses/egetables
rruit
)ther

ediblesweet

potatos

crops.ayersCoastalfisheries)ff-shore fisheries)istant water fisheries
Marine culture
Inland water fisheriesInland water culture
Jlaughering
Janned or bottled meat product}rocessed meat products)airy farm products:rozen fishes and shellfishes
5a 1 ted,dried or smoked seafood
Janned or bottled seafoods:ish paste)ther processed seafoods
Irain mi 11 ing:lour and other grain milling
doodles
Jread and confectionery
Janned or bottled vegetables
5ugar

JtarchVegetable oil and meal)ther vegetable products
Saltfavouring
letort foods}repared frozen foods)ther foods
iiquors

Tea and roasted coffee
Soft drinks
Manufactured ice
testaurants
Total food consumption expend.

Agriculture and fisheries
rood processing industries
Restaurants
TobaccoTextile products
Ihemical products'rinting and publishinglubber and plastic products'etroleumand coal products
Machinery)ther manufacturing products

Total

consumption expenditures

%
64. 3
61.2
58. 7
44.2
0.0
76.8
26. 7
39. 6
10.7
47. 3
63. 7
48.0
63. 3
70.3
71.2
67.0
54.4
56.5
69. 5
73. 4
63.7
83.8
70. 1
67.8
63. 2
56. 8

%
0.0
5.6
0. 4
12. 5
93.9
0. 1
24.2
1.4
9.6
0.2
0.0
14.8
6. 3
6. 3
0.5
1. 5
4.6

%
31.4
31.3
38. 6
40. 1
4.0
22. 4
47.0
57.0
73.0
49.8

%
4.4
1.9
2. 3
3. 1
2. 1
0.7
2. 1
2.0
6. 7
2.7

¥ million

34. 1
34.8
29.0
20. 2
26. 5
28.2
37. 6
34. 1

2. 1
2.4
1.5
3. 1
1. 9
3.3

56897
177088216970972866
871504
1678258
2429969
1156618147510451853887509

67.4
62.2
69. 0

57.8
76.2
63. 1
64. 9
69.5
80.5
69.7
59.0
73. 3
57.0
98.3
71. 9

6.3
0.0
0. 1
0. 1
0.0
0.2
3.5
2. 9
0. 1
0.0
1.7
2.4

89.0
46.4
49.1

58.2
50.0
60.0
63.7
54. 9
97. 9

Consumption

Trad.Marg.

6.5
2. 5
0.0
0.0
0.0
0.0
0.6
0.6
8. 0
0.2
0.0
0. 1

49.9
68. 7
98. 3

Trans.Fee

Imports

5. 9

2.0
1. 7
2.5
4.4
3.0
0.6

6.2
2.8
2.0
15. 8
2. 1

25. 0

24. 1
33. 6
15. 7
24. 7
29. 6
34. 4
32.4
27. 1
28. 1

3. 4

3.0
2. 9
2. 5
2.7
0. 5
5. 1
2. 1
1.8
2. 8

32. 7
15. 5
34. 8
33.0
27. 9
17.6
23.8

5.4
9. 7
2. 7
3.2
8.2
2.0
1. 9
2. 6
1. 7
2. 9

36.4
22. 6
39.4
0. 0
23.8

1. 7
4.0
3. 6
0.0
1. 9

41. 5
27. 1
0.0
7. 6

2. 6

28.2

48.2

47.2
40.0
42.7
35.6
33. 5
28.2
0.0

2. 2
0.0
0. 9
0.9
0. 6

1.2
1.0
1. 6
0.8
1. 1
0.0

1385503995
23688311380295
718

370922517485303676216911552149345674463148
9657614018556359468149522

%
0. 3
0.0
5. 0
2. 9
0.0
0. 8
1. 1
0. 6
0.5
1.2
0. 1
0.4
4. 6
0.2
1.8
3.5
5. 1
2.4
0.3
1. 0
1. 9
7. 3
0. 1

2.0
8.5
0. 8
0. 3

3446
30205279725710360
1226886
58951
3727684331308

0.0
0. 6
1.7
0.0

355142492097417882136256
904984247386249

7.5
1. 9
3. 8
0. 0
19. 1
100. 0608751732248890
90498422771275
12825401
4198290191061130682184636202
12996182
2397045
188313417

3. 2
17. 1

2. 6

0.1
0.8
9. 1

4. 8

1. 5
6. 8

2.2
1. 0
1.6
2. 5
6. 9

1. 3
100.0

Source: 1985 MAFF Input- Output Tables.

Noteil) In the top half, column 1,2,3 and 4 respectively shows the relative contribution of domestic products,
imports, trade margins, and transportation fees to consumption expenditures shown in column 5.

2) The column 6 shows the relative shares of the total consumption expenditures for foods andbeverages(¥47,386 billion) by sectors.

3) In the bottom half, the same breakdown is shown for the total consumption expenditures for major
eleven industrial sectors.

An Analysis of Food Consumption Patterns Using Input-Output Tables\griculture
Fisheries
12287

(Xlc

10391
3040

1X13

354

4X12

i M13

Food Consumption
Expenditures29223)omestic
Inputs
(X12
}M12
CT12

6994

mports

f Mlc
j M12

(¥ billion);ood Processing
Industries)omestic Products

I

Products

6088

27668

9610
6994
1488
1128

fX2c 22158
-\X22

CX23

3663

1847

Inputs
/X22

5033
3663

iM22

790

(-T22

sports

1896
361
1488

Inputs
C X13

47

\M13

(-T13

'M2c
I M22
M23

623
357

47
219

32249

Inputs 2393
(X23 1847-< M23
129

J-T23

47386

Agriculture& Fisheries

3040

(.Tic

2886

361

Food Processing
Industries
32249/X2c 22158

I M2c

*-T2c

417

6088

(Xlc

4Mlc

580

1555
636

790
129

89

636
9454

Restaurants-Restaurants

9049

9049

X3c

9049

Source: 1985 MAFF Input-Output Tables

Note: Xij, MtJ, TtJ respectively denotes input of domestic produce, imports, and distributive margins fromsector i to sector j. Sectors are as follows:

1.Agriculture and Fisheries,

2.Food Processing Industries,
3.Restaurants,

c.Food Consumption Expenditures.

Figure 2: Streams of Inputs to Food Consumption Expenditures

major suppliers of vegetables, fish, and other material food stuffs to food processing industries.
Thus, the problem is how to estimate the original contributions to the consumption expenditures
for foods and beverages made by domestic sectors and imports, or by primary industries, foodprocessing industries, restaurants and distribution sectors.

In Figure 2, household expenditures for foods and beverages based on 1985 MAFF Input-

Output Tables are shown on the right hand side. A simplified method is applied to estimate theelements in the streams of inputs to food consumption expenditures.
Firstly, the amount of eating out at restaurants shown in the right hand bottom of Figure 2

leads to the equivalent amount of output in the restaurant sector. Then, it leads to the amountof inputs from primary agriculture and fisheries, and food processing industries, each of which
is divided into domestic supplies and imports. All the estimates are obtained by applying input

coefficients to the amount of output in the restaurant sector.

Secondly, the outputs of domestic food processing industries and the amount of processedfood imports are separately estimated. These estimates are obtained by summing up the amountof direct household consumption, the amount of inputs to the restaurant sector which was

calculated in the first step, and the amount of inputs to food processing industries.

These

estimates thus determined the necessary amount of inputs from primary agriculture and fisheries.
Lastly, the outputs of domestic primary agriculture and fisheries and the amount of imports
of primary products are estimated. These estimates are obtained by aggregating the amountof direct household consumption, the amount of inputs to the restaurant sector which was

calculated in the first step, and the amount of inputs to food processing industries which was
calculated in the second step.

As for transactions between sectors, distribution margins are

estimated by inter-sectoral rates of margin.
Figure 2 are shown in Table 4.

The major results of the estimation captured in90Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

Table 4: Breakdown of Total Consumption Expenditures for Foods and Beverages by Origins
B

A
Domestic Products
Primary industries

Food processing industries
Imports

Primary industries

Food processing industries
Restaurants

Note: 1)
2)

¥ billion%¥billion%

25,19853.1

23,461

46.4

3,040

6.4

10,391

21.9

22,15846.7

13,025

27.5

979

2.1

3,451

7.3

361

0.8

1,896

4.0

636

1.3

1,555

3.3

9,049

19.1

6,033

12.7

Distributive margins

12,14025.7

14,484

30.6

Total

47,386100.0

47,386100.0

A shows the breakdown of final consumption expenditures for foods and beverages.
B shows the breakdown when the primary indirect effects are taken into account.

In Table 4, the percentage contribution of domestic primary sectors to household consump

tion expenditures for foods and beverages is 21.9% in column B, much larger than the 6.4% incolumn A. In column B, vegetables and fish used in restaurants and all the primary products
used in food processing industries are included in the contribution of agriculture and fisheries.
Consequently, the relative contribution of domestic food processing industries declined from

46.7% to 27.5%. Further the contribution of restaurants decreased from 19.1% to 12.7%.
The total contribution of distributive margins, inclusive of those paid in inter-sectoral transactions, is more than 30% in column B, compared with about 25% in column A which refers
only to direct household expenditures.

The contribution of imports increased from 2.1% in column A to 7.3% in column B. The
increase in the contribution of imports is less than expected. This is because the simplified methods of estimation used here ignores the secondary and tertiary interaction effects. For example,

the inputs of beef cattle, swine and poultry from domestic livestock sectors and imports are
subtracted from the contribution of Slaughtering(supplier of fresh meats), but the contributionof imported feeds are not separated from the output of domestic livestock sectors.

The share of imports in the total expenditures for foods and beverages will not exceed 10%even though all the original contribution of imports is taken into consideration. The relatively
low dependence of food consumption on imports seems to contradict with Japan's low rate ofself-sufficiency in foods(47% in terms of original calorie in 1990). The discrepancy stems fromthe large contributions of value-added and distributive margins to consumption expenditures
on foods and beverages. Imported food-stuffs do not contribute much in terms of money value

although they contribute much in terms of calorie. It has two implications. Firstly, the increasein the imports of food material does not significantly influence the import ratio in money terms.

Secondly, changes in prices of imported food materials due to changes in currency exchange

rates and/or fluctuations in the world market situation do not significantly influence domestic
prices of processed foods.

On the contrary, the imports of processed foods may have significant impact on domestic
food prices as well as food import ratio. The import of processed foods has been small sinceconsumers prefer domestic products on account of taste and safety. In the future, however, it

may increase remarkably if the further appreciation of yen will to widen gaps between domestic
and world food prices. The increase in the import of processed foods will then bring about asudden rise in the import ratio and, at the same time reducing the level of Japanese food prices
which is now the highest in the world.

An Analysis of Food Consumption Patterns Using Input-Output Tables

5.

91

Changes in Food Consumption Patterns as Shown in Input-Output
TablesIn Table 5, breakdown of food consumption expenditures are compared between the MAFF
Input-Output Tables and the Family Income and Expenditure Survey for the years 1970, 1975,1980 and 1985. The top half of Table 5 is obtained from the MAFF Input-Output Tables. Here,consumption expenditures for foods are classified by industrial sectors which produce them. Food
producing industries are, however, integrated and rearranged to make comparison easier. The
20th to the 23rd row of the top table show the relative contribution(%) of domestic products,
imports, trade margins, and transportation fees to the total food consumption expenditure.
The Engel's coefficients are shown in the 24th row. The bottom half of Table 5 shows similarly
arranged food expenditures by the the Family Income and Expenditure Survey.

According to Table 5, the share of expenditures for foods and beverages in the total con
sumption expenditures declined steadily from 32% in 1970 to 25% in 1985 in accordance withthe rise in income. In particular, the share of Grain milling and Flour declined by 4.5 percent
points from 12% in 1970 to 7.4% in 1985 due to the sharp decline in expenditures for Rice.
While Fresh fish, Fresh meats, and Fresh vegetables and fruit declined in their shares, the sharesof corresponding processed products increased. In 1970, fresh and processed products of thesethree items accounted for 24% and 13% of total expenditures for foods and beverages respec
tively. In 1985, the share of fresh products decreased to 17% while that of processed products
increased to 15%.
The largest decline in the share of expenditures during the fifteen years to 1985 arises in
the case of Eggs, followed by Rice and wheat flour.

The share of Eggs also declined sharply

in England and the U.S.A. in spite of the fall in egg price7. The share of Dairy products also
declined. More detailed data will show the decline in the share of Milk and Butter and the risein the share of Cheese and Yogurt.
Fats and oils, Sugar, and Condiments gained their shares during 1970 to 1975, but declined

thereafter. In particular, the share of expenditure for Sugar decreased from 1.3% in 1975 to

0.3% in 1985.
Other foods and Eating out at restaurants are typical items which show gain in shares.

The share of cooked foods such as Retort foods(included in Other foods) has largely increased.
While Other foods showed a large increase in their shares in recent years, the share of Eatingout declined during 1980 to 1985. The share of Soft drinks increased, while the shares of Liquors
declined slightly.

Turning to the relative contribution of domestic supplies, imports, and distributive margins

to the total consumption expenditures for foods and beverages, no definite trends are observed
over the fifteen years to 1985. More detailed analysis, including indirect effects and on different
stages of distribution, may lead to more interesting findings. In particular, in Japan, remarkablechanges have been observed in the distribution of foods over the past decade. Changes are stillgoing on and they are influencing distributive margins differently by food items and by thestages of distribution. These points need further studies.
Although the relative shares of food items are considerably different between the top halfof Table 5 {MAFF Input-Output Tables) and the bottom half of the table (the Family Income
and Expenditure Survey), their changes over time are rather similar. The differences between

the two estimates of sectoral shares obtained from respective data sources was partly resulted
from the differences in the definitions of items. The most important source of discrepancy is,however, the differences in the coverage of the two data sources.
The Family Income and Expenditure Survey dose, not cover farm households and single-personhouseholds.

In contrast, the Input-Output Tables cover all consumption expenditures, except

7 See Senauer, B. [6]92

Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

Table 5: Changes in Food Consumption Patterns

1970

1975

1980

1985

MAFF INPUT-OUTPUT TABLES

Grain milling & flour

11.97

8.68

7.46

7.43

Noodles bread & cake

11.53

10.88

10.65

10.52

Fisheries

5.99

5.40

6.03

3.85

Processed seafoods

8.82

8.78

8.83

10.71

Slaughtering

6.17

7.84

6.91

4.58

Processed meat pro.

1.34

1.74

1.94

2.12

Dairy products

4.89

4.04

4.43

3.54

Layers

2.09

1.70

1.13

0.78

Vegetables

7.46

6.76

6.43

5.30

Fruits

4.63

3.82

2.97

2.91

Processed vege. & fruits

2.35

2.81

2.92

2.45

Vegetable oil & meal

0.78

0.94

0.72

0.64

Suger

0.96

1.32

0.70

0.32

Flavouring

3.00

3.33

3.18

2.61

Other foods

5.43

5.55

5.65

11.88

Spark & still beve.

0.00

2.75

2.67

3.77

Liquor

9.73

7.81

7.99

7.49

Restaurants

12.87

15.85

19.38

19.10

100.00100.00100.00100.00

Domestic products

72.21

71.96

70.92

71.95

Imports

2.65

3.44

3.89

2.43

23.54

22.94

22.97

23.76

Food consumption exp.

Trade margins
Transportaion fees

1.59

1.66

2.22

1.86

EngePs coefficient

32.37

30.97

27.37

25.16

FAMIRY INCOME AND EXPENDITURE SURVEY
Rice and flour

12.19

8.72

8.17

7.95

Noodles bread Sz cake

10.36

11.47

11.58

11.79

Fresh fish

7.68

8.40

8.34

7.88

Processed seafoods

5.22

5.51

5.67

5.70
8.18

Freash meats

7.90

9.01

8.63

Processed meats

1.68

1.98

1.99

1.93

Dairy products

4.28

3.76

3.39

3.24

Eggs

2.89

2.34

1.69

1.36

Fresh vegetables

8.40

7.71

7.99

7.54

Fresh fruits

6.51

5.99

5.05

5.26

Pro. vege. & fruits

4.55

4.64

4.44

4.45

Oils & fats

0.65

0.85

0.67

0.63

Sugar

0.75

0.75

0.42

0.32

Condiments

3.49

3.40

3.12

3.18

Oter foods

4.08

5.04

6.27

6.88

Beverages

4.18

4.04

3.83

3.60

Alcoholic beverages

5.28

5.06

4.93

5.03

Eating out

Food consumption exp.

9.90

11.35

13.83

15.08

100.00100.00100.00100.00An Analysis of Food Consumption Patterns Using Input-Output Tables

93

for non-household consumption expenditures which are separately tabulated. Thus the Family
Income and Expenditure Survey provides excellent data for the analysis of the consumption

expenditures by typical non-farm, non-single-person households, while the MAFF Input-Output

Tables provide overall features of the consumption expenditures covering the whole economy.
The Family Income and Expenditure Survey provides data on consumption expenditures, thequantities consumed, and unit prices for about 150 food items. Price indices for the same fooditems are available in the Consumers Price Index published by the Prime Minister's Office.
The MAFF Input-Output Tables have data on about 40 industrial sectors concerning foods

and beverages. No definite information is, however, available for the relationship between in
dustrial sectors and food items. Input-output tables are the only available data source for the

breakdown of consumption expenditures between domestic supplies, imports, and distributive
margins. Input-output tables can be widely used for the analysis of derived demand and theinteraction between industrial sectors.

In the MAFF Input-Output Tables, data at constantprices are available for consumption expenditures, but not for inter-sectoral transactions.
While the Family Income and Expenditure Survey is available every year, the MAFF Input-

Output Tables is only available once every five years.
In input-output analysis, sectors are often integrated to reduce the size of model for conve
nience of calculation with respect to the interaction among outputs and among prices. Input-

output tables provide, however, an enormous source of economic data which are consistent allover the economy through input-output relationship. This analysis of food consumption pat

terns is an example of the wide-range of studies which can result from the different approaches

to input-output tables8.

6.

Conclusion

The major fact findings are as follows:

1. For the majority of food items, the amount of per capita consumption increased in thefirst decade, and decreased in the last decade, of the period 1960-1990. About 40% of thefood items did not show any definite changes in per capita consumption over the three
decades.

2. The most important factor for the changes in per capita consumption of foods was thepreference for higher quality in the first decade and health consciousness in the last decade.
The preference for convenience foods accounted for about 30% of changes in per capita
consumption through the whole period.

3. According to the analysis of the Input-Output Tables, the contribution of the domestic pro
duction, imports, distribution services, and restaurants to the consumption expenditures

for foods and beverages was estimated to be 53.1%, 2.1%, 19.1% and 25.7% respectively
in 1985.

4. Taking the interaction between sectors into consideration, the original contribution of eachof the above four sectors was estimated to be 49.4%, 7.3%, 12.7% and 30.6% respectively.

5. The breakdown of the distributive margins into trade and transportation showed: 1)
transportation costs account for a relatively high share of the final expenditure both in
the case of primary food products and processed foods, and 2)trade margins account fora very high share of the final consumption of primary food products but only a very small
share in the case of the processed foods.
8Kanai, M., Sawada, Y. and Sawada, M. [3] briefly summarizes available statistical data sources on foodconsumption in Japan.

94

Journal of Applied Input-Output Analysis, Vol.1, No.2, 1993

6. In money terms, the contribution of imports to food consumption expenditures was lessthan 10% while the rate of self sufficiency in foods in terms of original dietary energy
was only 46%. This apparent contradiction is the result of a very high share of material
foods in imports. The imports of processed foods, which were limited so far due to theconsumers preference for traditional taste and food safety, may increase rapidly in the
future with the further appreciation of yen.

References[1] Fujita, N.(1991), "Food Consumption and Japanese Agriculture," in Agriculture and Agricultural
Policy in Japan, edited by the Committee for the Japanese Agriculture Session, XXI IAAE Con
ference, pp.39-46.

[2] Higuchi, T.(1991), "Japanese Dietary Habits and Food Consumption," ibid., pp.87-104.

[3] Kanai, M., Sawada, Y. and Sawada, M.(1991), "Japanese Consumer Demand," Tweeten, L., Dishon, C.L., Chern, W.S., Imamura, N. and Morishima, M. (eds.), Japanese and American Agriculture— Tradition and Progress in Conflict, Westview Press, pp.217-228.

[4] Morishima, M., Aita, Y. and Nakagawa, M.(1993), "Food Consumption in Japan," Tweeten, L. et
al. ibid., pp.141-156.

[5] Popkin, B.M., Guilkey, D.K. and Haines, P.S.(1989), "Food Consumption Changes of Adult Women
between 1977 and 1985," American Journal of Agricultural Economics, 71, pp.949-959.

[6] Senauer, B.(1990), "Major Consumer Trends Affecting The US Food System," Journal of Agricul
tural Economics, 41, pp.422-430.

[7] Tokoyama, H. and Egaitsu, F.(1990), "Eating Habits and Food Consumption Patterns",(inJapanese), in Kato, Y. (ed.), Economic Studies in Food Industry, Norin-Tokei-Kyokai Press, pp. 1135.

[8] Tokoyama, H. and Egaitsu, F.(1991), "Factors Affecting Consumers' Choice of Foods,"(inJapanese), Journal of Food Economics, No.19, pp.18-31.

[9] Tokoyama, H.(1993), "An Analysis of Food Consumption Patterns Based on Input-Output Tables,"(in Japanese), Innovation & 1-0 Technique, Vol.4, No.l, pp.58-66.

[10] Tokoyama, H. and Egaitsu, F. "Major Factors Affecting Changes in Food Consumption Patterns :Japan 1970-1990," in preparation.