MILWAUKEE – In the past ten years, food manufacturing establishments—such as bakeries—increased by 25%. Whereas beverage manufacturing establishments—like breweries—increased by 125%.
In a new article released in AEPP “Local Foods Go Downstream: Exploring the Spatial Factors Driving U.S. Food Manufacturing,” AAEA President-Elect, Dawn Thilmany McFadden along with Sarah Low, Marcelo Castillo, Maria Kuhns, and Martha Bass ask if ‘foodie culture’ influences the location of food and beverage manufacturing start-ups? And what place-based factors affect start-ups?
Low says, “Our study suggested that the local and regional culture of food entrepreneurship and farms aligned with alternative production and marketing activities (organic, direct sales) are positively related to food manufacturing start-ups in counties across the U.S. Economic dynamism is likely driving food start-ups through consumer-driven strategies and a culture of innovation, particularly in urban and
peri-urban areas.”
Thilmany McFadden gave the example, “if the big meat processing plants continue to struggle during COVID, we may have to leverage the capacity of a number of smaller plants, but many are not USDA certified—as they support producers that only sell in state and directly to consumers.
Beyond slaughter, some of these smaller plants have also supported a growth in sales of more artisan local meat offerings such as jerky and sausage. Perhaps in these unprecedented times, they will become more important supply chain assets to support differentiated and local livestock producers …and we are seeing the rules on state plants being revisited in light of current events.”
If you are interested in setting up an interview, please contact Allison Scheetz in the AAEA Business Office.
ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes two journals, the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit http://www.aaea.org.
