Van Galen, Michiel and Robert Hoste, 2016. Profit analysis in animal product supply chains; Exploratory research and proposal for a generic approach. Wageningen, LEI Wageningen UR (University & Research centre), LEI Memorandum 2016-052. 38 pp.; 7 fig.; 1 tab.; 66 ref. In agricultural economic research, farm profitability is an ongoing area of research. Measuring farm profitability has been a concern for economists and policy makers, in relation to rural development and food security in both developing countries and developed economies. In the policy and public debate, developments at farm level are rightly linked to price and profit developments in other parts of the agricultural value chain. Frequently, questions are raised concerning the seemingly distorted relationship between price developments and income distribution at different stages of the supply chain. A number of studies have been performed into the relationship (transmission) of prices and the distribution of value added and profits. It is concluded that comparison of profit margins between different supply chains or products and/or product groups, between parts of a supply chain, between countries, and between companies is not a priori clear and unambiguous without a thorough analysis.This research aims to contribute to the development of a systematic approach for profitability analysis aiming to explain differences between countries, supply chains and supply chain stages. Insight into the relationship between supply chain structure and the level and distribution of profits in supply chains can be used to trace and remove bottlenecks in supply chains.