jalostusarvon

Jalostusarvo refers to the processing value generated when raw materials are transformed into products with a higher value. In economic terms, it denotes the additional worth created through processing, packaging, branding, and quality improvements that occur along a value chain.

Calculation can be approached in two ways. A practical, farm- or company-level view measures jalostusarvo as the difference between the sales value of the processed product and the cost of the inputs used to produce it, including raw materials, energy, packaging, and other intermediate goods. In national accounting, jalostusarvo of a processing sector aligns with gross value added, which is output value minus intermediate consumption. These perspectives differ in scope but aim to capture the economic contribution of processing activities.

Examples illustrate the concept. Milk turned into cheese creates jalostusarvo beyond the price of the raw milk if the cheese sells for more per unit than the milk cost and associated processing inputs. Potatoes converted into crisps similarly generate value added that exceeds the cost of the potatoes, oil, flavorings, and packaging.

Uses and significance include evaluating profitability of processing steps, comparing value generation across stages of the supply chain, and informing policy and statistics about the importance of the processing sector within the economy. Factors affecting jalostusarvo include processing efficiency, technology, energy costs, quality control, branding, and regulatory requirements, as well as market demand. Limitations arise from input choices, price volatility, and the fact that the metric may not capture non-financial aspects such as environmental impact or labor conditions.