Competitiveness of U.S. Food Processing: Benefits from Primary Agriculture

12 Pages Posted: 25 Mar 2020

See all articles by Munisamy Gopinath

Munisamy Gopinath

Oregon State University - Department of Applied Economics

Terry L. Roe

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics

Mathew D. Shane

affiliation not provided to SSRN

Date Written: November 1996

Abstract

High‐value agricultural products such as processed foods are becoming increasingly important for both the production and trade of the United States. Efficiency gains in primary agriculture may be transferred to the processed food sector in the form of cheaper inputs because price declines and productivity growth have been coincidental in agriculture. In turn, efficiency gains in the processed food sector are transferred, in part, back to primary agriculture by increasing the derived demand and, thus, mitigating the decline in the latter's price. Efficiency gains are relatively more important in primary agriculture than in food processing. Policies which encourage productivity growth that lowers the production costs can increase the competitiveness of both sectors. The ultimate beneficiaries of the price declines in primary agriculture and food processing are consumers.

Keywords: growth, processed food, technological externalities, U.S. agricultural competitiveness, L660, Q170

Suggested Citation

Gopinath, Munisamy and Roe, Terry L. and Shane, Mathew D., Competitiveness of U.S. Food Processing: Benefits from Primary Agriculture (November 1996). American Journal of Agricultural Economics, Vol. 78, Issue 4, pp. 1044-1055, 1996, Available at SSRN: https://ssrn.com/abstract=3560447 or http://dx.doi.org/10.2307/1243860

Munisamy Gopinath (Contact Author)

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States
541-737-1402 (Phone)
541-737-2563 (Fax)

Terry L. Roe

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics ( email )

1994 Buford Avenue
St. Paul, MN 55108
United States

Mathew D. Shane

affiliation not provided to SSRN

No Address Available

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