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U.S. Foreign Direct Investment in the Western Hemisphere Processed Food Industry

by Christine Bolling , Steven A. Neff, and Charles Handy

Agricultural Economic Report No. (AER-760) 63 pp, March 1998

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Foreign direct investment (FDI) has become the leading means for U.S. processed food companies to participate in international markets. Affiliates of U.S.-owned food processing companies had $30 billion in sales throughout the Western Hemisphere in 1995, nearly 4 times the level of processed food exports. This report puts U.S. foreign direct investment and trade in processed foods to the region into global perspective, and finds evidence that, in the aggregate for the 1990's, trade and FDI are complementary--not competitive--means of accessing international food markets. Incomes have grown sufficiently in most countries to support growth in affiliate sales and U.S. exports, indicating a strong demand for a wide variety of processed foods.

Keywords: U.S. food processing industry, Western Hemisphere, foreign trade, foreign direct investment

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Last updated: Wednesday, January 30, 2013

For more information contact: Christine Bolling , Steven A. Neff, and Charles Handy

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