Agroindustrial investment and operations by James G. Brown

By James G. Brown

Booklet via Brown, James G.

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By James G. Brown

Booklet via Brown, James G.

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Prepared foods such as bread, tortillas, and processed cassava quickly become standard items in urban and even rural diets. Canned goods such as tomato paste, condensed milk, and tinned fish find their way into village stores and weekly markets in the most remote regions. If these goods are imported, they usually came from a somewhat more developed neighboring country, not a fully industrialized economy. The expansion and deepening of the economy coincide with changes in export trade, and agroindustrial activity enters a new phase of development: An increasing share of its output takes the form of semiprocessed goods that become inputs to yet other industrial processes.

The technical skills and industrial work habits that take shape in these industries eventually find application elsewhere in the economy. Consequently, the manufacturing and service sectors begin to broaden, setting the stage for a gradual decline in the relative importance of agroindustry, which gathers momentum as other activities surpass the sector in terms of share of gross domestic product (GDP). Further along on the development path, agroindustrial processing for export and domestic markets evolves to secondary and tertiary stages, as enterprises and governments try to capture an increased share of the value added and employment in the finished product.

ARE SALES CLOSELY LINKED TO SALES OF ANOTHER PRODUCT OR TO A MEANS OF COOKING OR FOOD PREPARATION THAT MAY PROVE TO HAVE ONLY EPHEMERAL POPULARITY? Some sauce ingredients are used for a specific type of meal. For example, a large share of hot pepper consumption in North America is related to the popularity of Mexican cuisine. Mint sauce is consumed primarily with lamb. If, for any reasonsuch as a health scare about "hot" foods or a long-term decline in lamb consumptionthe type of meal goes out of fashion, the demand for the accompanying product can vanish.

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