It measures the value created at a stage of production. It is not profit: it also pays for labour and capital, among other things.
Value added
In a nutshell
Value added is the value of output minus the goods and services used up to produce it.
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Explained simply
A practical example
Hypothetical example: a processor sells CFA 100,000 of juice and uses CFA 40,000 of fruit, packaging and other intermediate inputs; value added is CFA 60,000.
Further reading
Source: Insee — Value added.
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What this means
Value added is CFA 60,000, before items such as labour remuneration.
Educational scenarios. Amounts and rates are fictional, not current market conditions.