The present article examines the distribution of the value added share—value added as a fraction of turnover—among Danish food processors, which follows an apparently bimodal pattern. Small firms have the largest value added shares, followed by medium and large sized firms, which tend to have the lowest value added shares, respectively. The main part of the study identifies and discusses several determinants affecting the value added share. The estimation results suggest a positive relationship between advertising expenditures, industry productivity and wage share with the value added share. Firms (industries) producing differentiated products with high-productive labour-intensive production processes yield larger value added shares than other firms (industries). Alternatively, the firms' market share, the degree of concentration, import, market size and firm size affect the value added share negatively. The influence of export share cannot be deduced clearly.
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