Global Markets for Processed Foods

The purpose of the book is twofold: first, to focus the attention of trade researchers on theoretical, methodological, and empirical issues arising from inconsistencies between neoclassical trade theory and actual patterns of international commerce in processed food and beverages; second, to identify the implications of these issues for public policy.In the agro-food complex, research and policy analysis up to this day has been mostly directed at agricultural commodities such as wheat, corn, etc. However, the fact is that trade in processed foods exceeds that of agricultural commodities. Furthermore, international commerce in processed foods is characterized by traits not found in trade of agricultural commodities. These include intra-industry trade, economies of scale, foreign direct investment, multinational enterprises, vertical integration, foreign production, and others. Thus, existing trade models of agricultural commodities are not sufficient to explain international commerce in processed foods. Therefore, trade policy prescriptions are not symmetric between agricultural commodities and processed food products.The chapters in this book shed light on the different characteristics of the international commerce in processed foods, both theoretically and empirically. The book is organized into two parts. The first part contains chapters that are central to general concepts underlying international commerce in processed foods. The second part contains six chapters that report research applied to specific regions or goods to investigate several aspects of the globalization of the processed food industry.