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Enhancing Food Safety and Productivity: Technology Use in the Canadian Food Processing Industry

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  • Baldwin, John R.
  • Sabourin, David

Abstract

This paper examines the factors contributing to the adoption of advanced technologies in the Canadian food-processing sector. The numbers of technologies used by a plant is found to be highly correlated with expected gains in firm performance. The benefits of enhanced food safety and quality, as well as productivity improvements, are closely associated with technology use. Impediments that negatively affect technology use include software costs, problems with external financing, lack of cash flow for financing, and internal management problems. Even after accounting for the different benefits and costs associated with technology adoption, the numbers of advanced technologies that are adopted are found to be greater in larger plants, in foreign-controlled plants, in plants that engage in both primary and secondary processing, and in the dairy, fruit and vegetable and "other" food product industries.

Suggested Citation

  • Baldwin, John R. & Sabourin, David, 2002. "Enhancing Food Safety and Productivity: Technology Use in the Canadian Food Processing Industry," Analytical Studies Branch Research Paper Series 2002168e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp3e:2002168e
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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2002168&ObjType=46&lang=en&limit=0
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    References listed on IDEAS

    as
    1. Baldwin, John R. & Sabourin, David & West, Donald, 1999. "Advanced Technology in the Canadian Food Industry," Advanced Technology in the Canadian Food Industry, Statistics Canada, Economic Analysis Division, number stcb4e, February.
    2. Stoneman, Paul & Kwon, Myung Joong, 1996. "Technology Adoption and Firm Profitability," Economic Journal, Royal Economic Society, vol. 106(437), pages 952-962, July.
    3. Sabourin, David, 2001. "Skill Shortages and Advanced Technology Adoption," Analytical Studies Branch Research Paper Series 2001175e, Statistics Canada, Analytical Studies Branch.
    4. H. Frederick Gale, 1998. "Rural Manufacturing on the Crest of the Wave: A Count Data Analysis of Technology Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 347-359.
    5. Baldwin, John & Lin, Zhengxi, 2002. "Impediments to advanced technology adoption for Canadian manufacturers," Research Policy, Elsevier, vol. 31(1), pages 1-18, January.
    6. Baldwin, John R. & Sabourin, David, 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch.
    7. Lane, Sarah J, 1991. "The Determinants of Investment in New Technology," American Economic Review, American Economic Association, vol. 81(2), pages 262-265, May.
    8. Michael Boehlje, 1999. "Structural Changes in the Agricultural Industries: How Do We Measure, Analyze and Understand Them?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1028-1041.
    9. Timothy Dunne, 1994. "Plant Age and Technology Use in US. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 488-499, Autumn.
    10. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
    11. Baldwin, John R. & Gellatly, Guy & Johnson, Joanne & Peters, Valerie, 1999. "The Defining Characteristics of Entrants in Science-based Industries," The Defining Characteristics of Entrants in Science-based Industries, Statistics Canada, Economic Analysis Division, number stcb3e, February.
    12. Randall E. Westgren, 1999. "Delivering Food Safety, Food Quality, and Sustainable Production Practices: The Label Rouge Poultry System in France," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1107-1111.
    13. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December.
    14. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
    15. Baldwin, John R. & Diverty, Brent & Sabourin, David, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Baldwin, John R. & Gaudreault, Valerie & Gellatly, Guy, 2002. "Financing Innovation in New Small Firms: New Evidence from Canada," Analytical Studies Branch Research Paper Series 2002190e, Statistics Canada, Analytical Studies Branch.
    2. Chris Ross, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Food Manufacturing Subsector," CSLS Research Reports 2011-07, Centre for the Study of Living Standards.
    3. Baldwin, John R. & Gellatly, Guy, 2007. "Global Links: Multinationals in Canada: An Overview of Research at Statistics Canada," The Canadian Economy in Transition 2007014e, Statistics Canada, Economic Analysis Division.
    4. Baldwin, John R. & Sabourin, David, 2004. "The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector," Economic Analysis (EA) Research Paper Series 2004020e, Statistics Canada, Analytical Studies Branch.

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    Keywords

    Food; beverage and tobacco; Manufacturing; Science and technology;

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