0
500 1000 1500 2000 2500 3000
Agriculture
Utilities
Packaging industry
Equipment and other industrial activities
Transport and storage
Media and marketing
Services and other
4 | Indirect effects
of the brewing sector
In 2010, 39% of output value remained within the
breweries as value added. The other 61% of 110 million
euro in total turnover accrued to suppliers.
This stimulus of 68 million euro has a signifcant economic
impact on sectors outside the brewing sector as shown in
the table below:
More than one-third of the indirect employment generated
by the brewing sector is within the agricultural sector.
Employment within the agricultural sector that can be
attributed to the growing of crops used for beer has
increased since 2008.
Other substantial effects can be observed in media and
marketing. The total frst-round employment effect of
the brewing sector on supplying sectors is about 1,891
employees. This primary effect can be estimated at about
65% of the total impact. Thus, the total impact will be
about 2,900 jobs.
›
Source : Ernst & Young calculation (2011)
Sectors
Stimulus
Stimulus for Latvia
Turnover per
employee
Number
of employees
(mln. €)
%
(mln. €)
(in €)
Agriculture
23.16
40
9.27
€ 9,094
1,019
Utilities
7.77
100
7.77
€ 74,376
104
Packaging industry (in hectolitres)
7.77
40
3.11
€ 39,667
78
Equipment
1.98
50
0.99
€ 39,667
25
Transport
5.86
100
5.86
€ 50,720
116
Media, marketing
19.42
100
19.42
€ 38,996
498
Services
1.98
100
1.98
€ 38,996
51
Total
67.93
48
1,891
First-round impact as % of total impact
65%
Total indirect effect of brewing sector
2,909
›
Source : Ernst & Young calculation, (2011); Eurostat, (2008)
›
Graph 23.2. / Indirect employment
23
147
Latvia