JULIE P. SMITH
hair, skin or other products; and storing or carrying to some basic
processing of this produce.
SNA93 also included in GDP any agricultural produce con-
sumed on-farm. The national accounting framework thus included
all non-marketed goods, including the production, processing and
storage of food by households, within the GDP production bound-
The Australian Bureau of Statistics (ABS) includes the value
of homegrown fruit, vegetables, eggs, beer, wine and meat in esti-
mates of ﬁnal private consumption expenditure and therefore GDP.
Australian core accounts now include “the own account production
of all goods retained by their producers for their own ﬁnal consump-
tion or gross capital formation” (”Unpaid Work and the Australian
Economy”, 46), where these are quantitatively signiﬁcant, thereby
following the practice set down in SNA93 (para 6.18).
The preferred approach to valuing production in the national
accounts system is using market values. The fundamental criteria
for inclusion of a good is that it can be traded in a market. The
existence of markets in human milk (see above, Section 1) means
there are prices of a closely related or analogous product - a shadow
price - from which to impute its economic value.
We have shown human is deﬁned as a good within the SNA93
core production boundary (Smith and Ingham “Mothers’ Milk”;
Smith and Ingham “Breastfeeding”) because, in national accounting
language, it can be produced, stored, sold on markets, and thus be
valued (Commission of the European Communities, para. 6.7).
Demonstrably, the value of human milk production can be es-
timated using accepted valuation methods for national accounting
– an input based, wage cost approach (replacement wage, opportu-
nity cost), or using the market value of the output (Smith “Human
Milk Supply”). Estimated annual human milk production in Aus-
tralia in 1992 was 33 million kg. Using a market value of output
approach to valuing production in a national accounts framework
(i.e. a price of US$50 per litre used for the Norwegian study (Os-