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


  • Munisamy Gopinath
  • Terry L. Roe
  • Mathew D. Shane


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. Copyright 1996, Oxford University Press.

Suggested Citation

  • Munisamy Gopinath & Terry L. Roe & Mathew D. Shane, 1996. "Competitiveness of U.S. Food Processing: Benefits from Primary Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1044-1055.
  • Handle: RePEc:oup:ajagec:v:78:y:1996:i:4:p:1044-1055

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    References listed on IDEAS

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    Cited by:

    1. Gaigne, Carl & Le Mener, Leo, 2012. "Agricultural Prices, Selection, and the Evolution of Food Industry," Working Papers 125221, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    2. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2002. "An analysis of the growth of the Australian dairy and meat processing industries," 2002 Conference (46th), February 13-15, 2002, Canberra 125113, Australian Agricultural and Resource Economics Society.
    3. Arnade, Carlos Anthony & Gopinath, Munisamy, 1998. "Capital Adjustment In U.S. Agriculture And Food Processing: A Cross-Sectoral Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
    4. Morrison Paul, Catherine J., 2000. "Productivity And Efficiency In The U.S. Food System, Or, Might Cost Factors Support Increasing Mergers And Concentration?," Working Papers 11983, University of California, Davis, Department of Agricultural and Resource Economics.
    5. Tahir Mahmood & Tahir Mahmood & Mikael Linden, 2017. "Structural Change and Economic Growth in Schengen Region," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 303-311.
    6. Dibrell, Clay & Moeller, Miriam, 2011. "The impact of a service-dominant focus strategy and stewardship culture on organizational innovativeness in family-owned businesses," Journal of Family Business Strategy, Elsevier, vol. 2(1), pages 43-51, March.
    7. Fiess, Norbert M. & Verner, Dorte, 2001. "Intersectoral dynamics and economic growth in Ecuador," Policy Research Working Paper Series 2514, The World Bank.
    8. Veeman, Terrence S. & Peng, Yanning & Fantino, A.A., 1997. "Science, Technology, and Competitiveness in Alberta's Agriculture and Food Sector," Project Report Series 24058, University of Alberta, Department of Resource Economics and Environmental Sociology.
    9. Devadoss, Stephen, 1998. "Importance Of The Processed Food Sector For The U.S. Agricultural Industry," Trade Research Center Research Discussion Papers 29246, Montana State University, Department of Agricultural Economics and Economics.
    10. Catherine Morrison Paul, 2003. "Productivity and Efficiency Measurement in Our “New Economy”: Determinants, Interactions, and Policy Relevance," Journal of Productivity Analysis, Springer, vol. 19(2), pages 161-177, April.
    11. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2003. "An analysis of the growth of the Australian dairy and meat processing sectors," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 11.
    12. Léo Le Mener, 2015. "Heterogeneous agrifood firms, agricultural prices and access to foreign markets," Working Papers SMART - LERECO 15-11, INRA UMR SMART-LERECO.
    13. Ackerson, Leland K. & Kawachi, Ichiro & Barbeau, Elizabeth M. & Subramanian, S.V., 2008. "Geography of underweight and overweight among women in India: A multilevel analysis of 3204 neighborhoods in 26 states," Economics & Human Biology, Elsevier, vol. 6(2), pages 264-280, July.
    14. Roe, Terry L. & Mohtadi, Hamid, 1999. "International Trade And Growth: An Overview From The Perspective Of The New Growth Theory," 1999 Annual meeting, August 8-11, Nashville, TN 21536, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Corinne Bagoulla & Emmanuelle Chevassus-Lozza & Karine Daniel & Carl Gaigné, 2010. "Regional Production Adjustment to Import Competition: Evidence from the French Agro-Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1040-1050.
    16. Gopinath, Munisamy & Roe, Terry L., 1996. "R&D Spillovers: Evidence from U.S. Food Processing, Farm Machinery and Agriculture," Bulletins 7504, University of Minnesota, Economic Development Center.
    17. Verner, Dorte & Fiess, Norbert M., 2003. "Oil, agriculture, and the public sector: linking intersector dynamics in Ecuador," Policy Research Working Paper Series 3094, The World Bank.
    18. 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.
    19. Morrison Paul, Catherine J., 2002. "Supply and demand-driven spillovers and productivity growth," Japan and the World Economy, Elsevier, vol. 14(3), pages 285-304, August.
    20. Blunch, Niels-Hugo & Verner, Dorte, 1999. "Sector growth and the dual economy model - evidence from Cote d'Ivoire, Ghana, and Zimbabwe," Policy Research Working Paper Series 2175, The World Bank.
    21. van Berkum, Siemen & van Meijl, Hans, 2000. "The application of trade and growth theories to agriculture: a survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.

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