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The determinants of location choices for food processing plants


  • Rigoberto A. Lopez

    (Department of Agricultural Economics and Marketing, Rutgers University)

  • Nona R. Henderson

    (Seafood marketing specialist of the Fisheries and Aquaculture Technology Extension Center, the New Jersey Sea Grant Marine Advisory Service, and the Rutgers Cooperative Extension, Rutgers University)


This article examines the determinants of location choices for new food processing plants using the results of a telephone survey. Six categories of business climate factors (market, infrastructure, labor, personal, environmental regulation, and fiscal policy) containing 41 specific location factors are considered. The survey responses are analyzed in their entirety, by types of raw products processed, and by plant size. Findings indicate that plant location choices are driven by market and infrastructural factors. Fiscal policies such as tax and development incentives are insignificant. Implications of the findings for devising incentive packages to attract new plants are given.

Suggested Citation

  • Rigoberto A. Lopez & Nona R. Henderson, 1989. "The determinants of location choices for food processing plants," Agribusiness, John Wiley & Sons, Ltd., vol. 5(6), pages 619-632.
  • Handle: RePEc:wly:agribz:v:5:y:1989:i:6:p:619-632
    DOI: 10.1002/1520-6297(198911)5:6<619::AID-AGR2720050607>3.0.CO;2-A

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    References listed on IDEAS

    1. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
    2. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
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    Cited by:

    1. Mônica A. Haddad & Gary Taylor & Francis Owusu, 2010. "Locational Choices of the Ethanol Industry in the Midwest Corn Belt," Economic Development Quarterly, , vol. 24(1), pages 74-86, February.
    2. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "Food Industry Investment Flows: Implications for Rural Development," The Review of Regional Studies, Southern Regional Science Association, vol. 36(2), pages 140-162.
    3. Henderson, Jason R. & McNamara, Kevin T., 2000. "The Location Of Food Manufacturing Plant Investments In Corn Belt Counties," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(02), December.
    4. Marc Vesecky & David Lins, 1995. "Factors influencing expansion and contraction decisions by Illinois agribusiness firms," Agribusiness, John Wiley & Sons, Ltd., vol. 11(5), pages 405-413.
    5. Love, Lisa L. & Crompton, John L., 1999. "The Role of Quality of Life in Business (Re)Location Decisions," Journal of Business Research, Elsevier, vol. 44(3), pages 211-222, March.
    6. Golz, Theresa K. & Golz, Joel T. & Helgeson, Delmer L. & Petry, Timothy A., 1990. "Preliminary Economic Feasibility of Broiler Production in North Dakota," Agricultural Economics Reports 23238, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Sambidi, Pramod R. & Harrison, R. Wes, 2003. "Analysis Of Site-Specific Determinants Of Location Decisions For The U.S. Broiler Industry," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35121, Southern Agricultural Economics Association.
    8. Adelaja, Adesoji O., 1992. "Productivity Growth And Input Mix Changes In Food Processing," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(1), April.

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