Small food businesses are essential for providing food products to 320 million consumers in the USA as well as overseas. They coordinate with the food farmers and other actors in place for delivering quality products to the end consumers. They are critical to the US economy as they are accounting for massive job creation opportunities. Not just that, but they also contribute towards making sure the food affordability for everyone. First, they fulfill the local needs and then generate even more revenue by exporting the excess food items. The food sector has a total sales of $1.4 trillion, and the local businesses contribute a major portion in that.
Source For Creating More Jobs:
After the great recession, which occurred from 2007 to 2009, a lot of Americans lost their jobs. It invoked a sense of urgency among the policymakers to come up with ways to mitigate this threat. Till now, many people struggle to find well-paying middle-class jobs. Thankfully, the local food businesses have been a consistent source of job creation for the citizens of the USA. The net wages of the workers in this field are quite higher than in many other business fields. Over the years, the food industry has established itself as a more stable source of generating employment opportunities. The demand for food never declines, and the prices of basic commodities remain the same to some extent. The improved net earnings of the workers and employers mean that they pay more tax, and the economy gets a huge boost.
A Decisive Role In Food Affordability:
Food is a safe business investment due to which the number of small and local businesses are burgeoning. But, the demand for food items varies only a little bit over time. Due to this diversification, the businesses offer competitive and reasonable prices to the end consumers. It is, for this reason, the average amount of money spent by consumers in the United States of America is much lesser. However, it is quite higher in other parts of the world. The result is an increase in the purchasing power of a single buyer. The money that was meant to be spent on the food is saved, due to which the savings increase. These savings either go into the banks or the people invest them somewhere, thus, making a smooth money flow.
Leading To More Innovation:
The food industry of the USA is continuously evolving in terms of innovation and technology. The investment in the technologies has almost doubled in the past decade only. The industry is focused on making fine food products that provide the best health benefits at minimum expenditure. According to a recent survey, the industry spends nearly $5.4 million annually on research work and acquiring the latest technologies. Small-scale businesses are a major contributor to this aspect. This gives a boost to the technology industry as well and allows the local businesses to produce more food within minimal resources. The result is the improved quality of food items which leads to more sales worldwide.
Amplification Of Exports:
The small companies in the food industry contribute largely to the increased number of exports for the USA. They are making processed food products that are more than half of food exports from the US in international markets. Since the beginning of this century, the US has seen an increased amount of exports by smaller brands. There is particularly a rapid rise in the export of dairy products, pork items, and prepared diets. This abrupt growth in exports is leading to the generation of the multiplier effect of the US economy. As a result, the net GDP of Unfitted States of America constantly grows.
Role of Food Packaging:
In recent times, custom food packaging has attracted negative media attention, and rightly so because it often contributes to waste generation. All the stakeholders in the food industry of the USA have responded to this criticism. They are now more focused on using packaging that does not affect the quality of life. Cardboard and Kraft paper are being widely used by food manufacturers because of their attractive properties. Not only do they make the packaging sturdier, but they make it perfectly good for the surroundings as well. The best part is that they are printable that makes the packaging a communicating medium between the sellers and buyers. Consumers can now easily acquire information about the items by just looking at the packaging.
The localized or small food businesses are significant and stable contributors to the economy of the United States of America. The economic activities of the food industry are leading to the growth of GDP. Moreover, they enhance the buying capacity of normal people and create better job opportunities for unemployed people.