Agricultural and entrepreneurial factors driving U.S. food manufacturing startup locations

Abstract

"Food manufacturing's earnings and jobs rank it as the largest industry within rural America's manufacturing sector, which accounted for 20% of rural (nonmetro) earnings and is a key economic driver in rural communities. In 2018, the U.S. food and beverage manufacturing industry accounted for 1.3% of jobs and 1.1% of earnings, and Missouri's food and beverage manufacturing industry accounted for 1.3% of jobs and 1.3% of earnings. At the consumer level, overall food and beverage spending has been stagnant. However, purchase patterns have shifted. In particular, some consumers have opted to purchase more specialty goods, place-based goods, and goods made by smaller frms. These behaviors raise a question: is food manufacturing, once again, a viable rural economic development strategy? If so, then are food manufacturing startups a natural extension of the dynamic driving interest in local foods at the farmgate? To answer these questions, an MU Extension faculty member and graduate student partnered with colleagues at Colorado State University and USDA Economic Research Service to discover the agricultural and entrepreneurial characteristics of regions with more food and beverage manufacturing startups. Te study is part of a collective effort to defne "the locational secret sauce" for food and beverage manufacturing startups. Ultimately, policymakers may use these findings to focus resources toward areas with the greatest potential for startup success."--First page.