The U.S. farm export boom: how will it be shaped by global infrastructure?

Alan Barkema and Mark Drabenstott

Economic Review, 1996, vol. 81, issue Q III, 77-91

Abstract: A recent surge in U.S. agricultural exports has triggered a wave of optimism about the industry's prospects in the world food market. At the root of the industry's recent export gains are rapidly growing populations and incomes across Asia and Latin America. Adding fuel to U.S. agriculture's newfound optimism is the recent emergence of China--the world's most populous nation and most rapidly growing economy--as a net importer of food.> The world food market may not live up to current expectations, however, without substantial investment in food processing and distribution infrastructure in developing countries. Much of the developing world has limited capacity to process and distribute food, whether imported or produced domestically. For example, in China and Mexico--two of U.S. agriculture's most promising markets--the existing transportation and distribution systems are inadequate to meet current food system needs. Such infrastructure limitations could become a crucial bottleneck for exports of some U.S. farm commodities. At the same time, however, exports of other kinds of products, including U.S. farm and food technology, could be strengthened by efforts to upgrade the infrastructure supporting the food systems in the developing world.> Barkema and Drabenstott examine how an inadequate food system infrastructure in the developing world may affect U.S. agriculture's prospects in the world food market. They conclude that inadequate infrastructure could tilt U.S. exports toward food technology and products and away from traditional bulk commodities.

Keywords: Farm produce; Agriculture; Food industry and trade; Exports (search for similar items in EconPapers)
Date: 1996
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