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The Food Processing Industry, Globalization and Developing Countries

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  • John Wilkinson

    (Graduate Centre for Agricultural Development, Federal Rural University, Rio de Janeiro)

Abstract

Transformations in the food processing sectors of developing countries are increasingly seen as strategic from the point of view of export earnings, domestic industry restructuring and dietary issues. This article reviews a selection of the literature on these themes. It begins with a discussion of the main trends identifiable in the food processing industries of the three regional blocs of the developed world, since it is their combined impact that determines the complex patterns of globalization. There follows a discussion of the importance of non-traditional food processing exports by developing countries and the different interpretations to which it has given rise. The internal transformations of the food processing sector of developing countries under the combined impact of imports and FDI are then considered. We conclude with a discussion of the heterogeneous dynamic of food processing in developing countries and the different possibilities for strengthening the participation of small and medium enterprises.

Suggested Citation

  • John Wilkinson, 2004. "The Food Processing Industry, Globalization and Developing Countries," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(2), pages 184-201.
  • Handle: RePEc:fao:tejade:v:1:y:2004:i:2:p:184-201
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    References listed on IDEAS

    as
    1. Prema‐Chandra Athukorala & Sisira Jayasuriya, 2003. "Food Safety Issues, Trade and WTO Rules: A Developing Country Perspective," The World Economy, Wiley Blackwell, vol. 26(9), pages 1395-1416, September.
    2. Cooke, Philip & Wills, David, 1999. "Small Firms, Social Capital and the Enhancement of Business Performance through Innovation Programmes," Small Business Economics, Springer, vol. 13(3), pages 219-234, November.
    3. Reardon, Thomas & Farina, Elizabeth Maria Mercier Querido, 2001. "The Rise Of Private Food Quality And Safety Standards: Illustrations From Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(4), pages 1-9.
    4. Walter Belik & Roseli Rocha dos Santos, 2002. "Regional Market Strategies of Supermarkets and Food Processors in Extended MERCOSUR," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 515-528, September.
    5. Reardon, Thomas & Codron, Jean-Marie & Busch, Lawrence & Bingen, R. James & Harris, Craig, 1999. "Global Change In Agrifood Grades And Standards: Agribusiness Strategic Responses In Developing Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(3-4), pages 1-15.
    6. Marchant, Mary A. & Saghaian, Sayed H. & Vickner, Steven S., 1999. "Trade And Foreign Direct Investment Management Strategies For U.S. Processed Food Firms In China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(2), pages 1-13.
    7. Athukorala, Prema-chandra & Sen, Kunal, 1998. "Processed food exports from developing countries: patterns and determinants," Food Policy, Elsevier, vol. 23(1), pages 41-54, February.
    8. Bolling, H. Christine & Neff, Steven & Handy, Charles R., 1998. "U.S. Foreign Direct Investment in the Western Hemisphere Processed Food Industry," Agricultural Economic Reports 34017, United States Department of Agriculture, Economic Research Service.
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    Citations

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    Cited by:

    1. Roehlano M. Briones, 2013. "The Structure of Agricultural Trade Industry in Developing Countries," Trade Working Papers 23420, East Asian Bureau of Economic Research.
    2. Stamoulis, Kostas G. & Pingali, Prabhu L. & Reardon, Thomas, 2006. "Impacts of Agrifood Market Transformation during Globalization on the Poor's Rural Nonfarm Employment: Lessons for Rural Business Development Programs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25556, International Association of Agricultural Economists.
    3. Alessandro Olper & Valentina Raimondi, 2008. "Market Access Asymmetry in Food Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(3), pages 509-537, October.
    4. Donatella Baiardi & Carluccio Bianchi & Eleonora Lorenzini, 2014. "Food competition in world markets: Some evidence from a panel data analysis of top exporting countries," DEM Working Papers Series 083, University of Pavia, Department of Economics and Management.
    5. Thomas Reardon & Kostas Stamoulis & Prabhu Pingali, 2007. "Rural nonfarm employment in developing countries in an era of globalization," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 173-183, December.
    6. Caetano Luiz Beber & Greta Langer & Johannes Meyer, 2021. "Strategic Actions for a Sustainable Internationalization of Agri-Food Supply Chains: The Case of the Dairy Industries from Brazil and Germany," Sustainability, MDPI, vol. 13(19), pages 1-18, September.
    7. Salman Hyder & P.K. Bhargava, 2016. "Indian food processing industry - opportunities and challenges," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(1), pages 1-10.
    8. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    9. Matoti, Bongiswa & Vink, Nick & Bienabe, Estelle, 2008. "Changing Face of the Agri-Food Market: A Farmers Response and Possible Solutions from a Provincial Perspective," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52098, African Association of Agricultural Economists (AAAE).
    10. Herforth, Nico & Theuvsen, Ludwig & Vásquez, Wilson & Wollni, Meike, 2015. "Understanding participation in modern supply chains under a social network perspective – evidence from blackberry farmers in the Ecuadorian Andes," GlobalFood Discussion Papers 197709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    11. Muhammad AFZAL & Maryam AYAZ, 2013. "Efficiency of Food Sector of Pakistan-A Dea Analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(10), pages 1310-1330, October.
    12. Mohanty, S. K. & Gaur, Pankhuri, 2022. "Developments in Agriculture Trade in the BIMSTEC Region," PRCI Research Papers 330120, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.
    13. Pan He & Beiming Cai & Giovanni Baiocchi & Zhu Liu, 2021. "Drivers of GHG emissions from dietary transition patterns in China: Supply versus demand options," Journal of Industrial Ecology, Yale University, vol. 25(3), pages 707-719, June.
    14. Reardon, Thomas, 2011. "The global rise and impact of supermarkets: an international perspective," 2011: The Supermarket Revolution in Food: Good, Bad or Ugly for the World's Farmers, Consumers and Retailers?, 14-16 August 2011 125312, Crawford Fund.

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    More about this item

    Keywords

    Food processing industry; restructuring; exports; dietary issues; SME;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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