How we divide the sectors
We divide the food and fibre sectors into:
We then divide the sectors into groupings of ANZSIC06 classes. We call these groupings 'designations'. They are:
'Core production' includes activities producing or capturing initial material for the sector. This includes most on-farm, on-orchard and fishing activities.
'Core processing/manufacturing' includes initial processing that gives a minimum saleable product, like meat processing, dairy manufacture or fruit packing in packhouses.
'Strongly connected' activities include those:
- dependent on core activities, like fertiliser manufacture
- inter-dependent with core activities, like veterinary services
- immediately downstream from core activities, like bread manufacture and wholesale.
For forestry and wood processing, we aligned 'core processing/manufacturing' and 'strongly connected' with how the 'Montréal process' classifies first- and second-stage processing.
For more detail of the New Zealand context, see pages 140 to 142 of 'Sustainable management of New Zealand's forests'.
'Relevant' activities include:
- primary production and initial processing support, like ship building and repair
- those that add value to primary production, like wood furniture manufacturing.
'Other' activities includes labour hire services that supply workers across the whole economy, as we think this includes some working in the food and fibre sectors. This sits under 'cross sector'.
We include 100% of people in core production, core processing/manufacturing and strongly connected industries.
We include 15% of people in relevant and other industries. This is a simplifying assumption. Businesses in these categories may be involved in activities inside and outside of the food and fibre sectors. They may also add value to food and fibre sector outputs, but depend on other inputs too.
How we identify what businesses do
Gathering information about the businesses and what activities they do is challenging. We use the Australian and New Zealand Standard Industrial Classification (ANZSIC06) classification system to identify industries businesses belong to.
ANZSIC06 divides the economy into business activities. This system is convenient because businesses and government already use it, and we can access this data through Stats NZ's Integrated Data Infrastructure (IDI). We use it to identify employees and self-employed people in the food and fibre sectors.