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Local Foods Go Downstream: Exploring the Spatial Factors Driving U.S. Food Manufacturing

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  • Sarah A. Low
  • Martha Bass
  • Dawn Thilmany
  • Marcelo Castillo

Abstract

Manufacturing, specifically food and beverage production, is a key employer in rural areas and has linkages to the agricultural sector. Using data drawn from the National Establishment Time‐Series for 2013–15, we explore what entrepreneurship, farm marketing channel innovations, and more traditional spatial factors influence the location decisions of food and beverage manufacturing establishment start‐ups in the U.S. We find that traditional spatial decision factors still matter but, in addition, proxies for farm adoption of downstream innovations are also related to start‐ups. We conclude by discussing implications of our findings for food market dynamics and rural economic development policy.

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  • Sarah A. Low & Martha Bass & Dawn Thilmany & Marcelo Castillo, 2021. "Local Foods Go Downstream: Exploring the Spatial Factors Driving U.S. Food Manufacturing," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 896-915, September.
    • Handle: RePEc:wly:apecpp:v:43:y:2021:i:3:p:896-915
    DOI: 10.1002/aepp.13046
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    2. Ahmad Zia Wahdat & Jayson L. Lusk, 2023. "The Achilles heel of the U.S. food industries: Exposure to labor and upstream industries in the supply chain," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 624-643, March.
    3. Jeffrey K. O'Hara & Nony Dutton & Nick Stavely, 2022. "The influence of farmers markets' characteristics on vendor sales," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 295-311, April.

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