{"id":8676,"date":"2015-06-15T08:50:56","date_gmt":"2015-06-15T15:50:56","guid":{"rendered":"http:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/?p=8676"},"modified":"2015-06-15T08:50:56","modified_gmt":"2015-06-15T15:50:56","slug":"economic-impact-food-beverage-processing-california","status":"publish","type":"post","link":"https:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/index.php\/2015\/06\/15\/economic-impact-food-beverage-processing-california\/","title":{"rendered":"The Economic Impact of Food and Beverage Processing in California &#8211; a study from UC Davis"},"content":{"rendered":"<p><strong><a href=\"http:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/wp-content\/uploads\/2015\/06\/cheese.jpg\"><img decoding=\"async\" class=\"alignleft size-full wp-image-8678\" alt=\"cheese\" src=\"http:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/wp-content\/uploads\/2015\/06\/cheese.jpg\" width=\"259\" height=\"315\" \/><\/a>\u00a0<\/strong><\/p>\n<p><strong>By\u00a0Richard J. Sexton, Josu\u00e9 Medell\u00edn-Azuara, and Tina L. Saitone<\/strong><\/p>\n<p><em>Food and beverage processing is the third largest manufacturing sector in California. In 2012 California\u2019s food and beverage processing sector contributed $82 billion in value added to the California economy, 760,000 full- and part-time jobs, $10.5 billion in federal tax revenues, and $8.2 billion in state and local tax revenues.<\/em><\/p>\n<p>California\u2019s role as the nation\u2019s\u00a0leading producer of agricultural\u00a0products is well known.\u00a0In 2012 California\u2019s farms and ranches\u00a0accounted for $42.6 billion in output.\u00a0California produced 15% of the nation\u2019s\u00a0total value of crop production and 7.1 percent\u00a0of the value of livestock and livestock\u00a0products.<\/p>\n<p>Most people, however, are probably\u00a0less familiar with the state\u2019s vitally\u00a0important food and beverage processing\u00a0sector, which is responsible for acquiring\u00a0the bounty produced on California\u2019s\u00a0farms and ranches and converting it to\u00a0the food, beverage, and fiber products\u00a0demanded by consumers worldwide.\u00a0Our study quantifies the economic\u00a0impact of this integral component of\u00a0California\u2019s economy. Food and beverage\u00a0processing is California\u2019s third\u00a0largest manufacturing sector, following\u00a0computers and electronics and chemicals,\u00a0and California\u2019s total of 3,421 food\u00a0manufacturing establishments is the\u00a0largest in the nation.<\/p>\n<p>We estimate that in 2012 the food and beverage processing sector directly accounted for total-value added of $82 billion, once indirect and induced impacts are included. The food and beverage processing sector was responsible for over 760,000 jobs in 2012, over 198,000 of them being directly in food and beverage processing and another nearly 563,000 through indirect and induced employment impacts.<\/p>\n<p>Based upon its direct value-added contribution, the food and beverage processing sector is the third largest manufacturing sector in California, comprising 9.2% of the state\u2019s manufacturing value added, and trailing only electronic and computer equipment (34.5%) and chemical manufacturing (15.8%).<\/p>\n<p>With milk production being California\u2019s largest agricultural industry, it is no surprise that dairy is the state\u2019s leading food processing industry. Dairy processing directly accounted for $3.37 billion in value added. Once the multiplier impacts from the sector\u2019s activities are included, the total economic impact of dairy processing in California is $15.6 billion. We estimate that the dairy sector directly accounts for 18,000 jobs, and that another nearly 122,000 jobs are generated from the indirect and induced impacts, resulting in over 139,000 California jobs that can be traced directly or indirectly to the dairy processing sector.<\/p>\n<p>Grape production, California\u2019s second largest agricultural industry in 2012, goes into producing wine and other grape beverages, table grapes, and raisins. Wineries represent California\u2019s second-leading food and beverage processing sector, accounting for $3.65 billion in direct value added in 2012. The multiplier for wineries is estimated to be 3.05, meaning indirect and induced impacts accounted for an additional $7.4 billion in value added in 2012. California wineries were directly or indirectly responsible for just over 100,000 jobs in 2012.<\/p>\n<p>Rounding out the top five California food and beverage processing sectors for 2012, in terms of value-added, were baking (comprised of bread and\u00a0bakery product manufacturing; cookie, cracker, and pasta manufacturing; and tortilla manufacturing); fruit and vegetable canning, pickling, and drying; and soft drink and ice manufacturing.<\/p>\n<p>These sectors were responsible for $2.64 billion, $2.22 billion, and $1.72 billion in direct value-added activity, respectively. In terms of employment, the baking sector accounted directly or indirectly for more than 89,000 jobs, the fruit and vegetable canning, pickling, and drying sector was responsible for another 73,000 jobs, and total employment due to the soft drink and ice-manufacturing sector was about 58,000.<\/p>\n<p><em>Richard J. Sexton is professor and chair in the ARE department (agricultural and resource economics) at UC Davis. He can be contacted by email at rich@primal.ucdavis.edu. Josu\u00e9 Medellin-Azuara is a research fellow in the civil and environmental engineering department at UC Davis who can be contacted at jmedellin@ ucdavis.edu. Tina L. Saitone is a project economist in the ARE department at UC Davis. She can be contacted at saitone@primal.ucdavis. edu.\u00a0<\/em><\/p>\n<p><a href=\"http:\/\/giannini.ucop.edu\/media\/are-update\/files\/articles\/V18N4_3.pdf\">Link to full study<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 By\u00a0Richard J. Sexton, Josu\u00e9 Medell\u00edn-Azuara, and Tina L. Saitone Food and beverage processing is the third largest manufacturing sector in California. In 2012 California\u2019s food and beverage processing sector contributed $82 billion in value added to the California economy, &hellip; <a href=\"https:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/index.php\/2015\/06\/15\/economic-impact-food-beverage-processing-california\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-8676","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>The Economic Impact of Food and Beverage Processing in California - a study from UC Davis - CDFA&#039;s Planting Seeds Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/index.php\/2015\/06\/15\/economic-impact-food-beverage-processing-california\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"The Economic Impact of Food and Beverage Processing in California - a study from UC Davis - CDFA&#039;s Planting Seeds Blog\" \/>\r\n<meta property=\"og:description\" content=\"\u00a0 By\u00a0Richard J. Sexton, Josu\u00e9 Medell\u00edn-Azuara, and Tina L. Saitone Food and beverage processing is the third largest manufacturing sector in California. 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