Japanese investment in United States food and agriculture: Evidence from California and Washington

Abstract

This article analyzes the investments of Japanese food processing firms in the states of California and Washington. Japanese investments are oriented towards one or more of the following goals: First, to secure stable supplies of raw material and/or lowering production costs. Second, to build production facilities to facilitate the export of food products to Japan. Third, to build US production facilities to supply US demand for traditional Japanese foods such as sake and soy sauce. Fourth, to secure access to US food technology. With exception of wineries, Japanese investors generally do not purchase agricultural land, preferring instead to purchase their raw commodities through contracts with local growers. Japanese direct investment remains comparatively small, but has the potential to grow significantly. © 1993 John Wiley & Sons, Inc.