SOUTH SAN FRANCISCO, and MODESTO,
Calif., May 14, 2015
/PRNewswire/ -- Cementing its place as California's most important agricultural
commodity by farm revenue, California farms sold about $9.4 billion worth of milk while the dairy
industry contributed approximately $21
billion in value added to the gross state product in 2014,
according to a California Milk Advisory Board (CMAB) study
conducted by the University of
California Agricultural Issues Center (AIC). Including sales
of inputs to dairy farms and milk processors along with raw milk
and wholesale milk product sales, the dairy industry contributed
$65 billion in total sales to the
California economy in 2014. The
growing demand for dairy products like cheese and yogurt as well as
strong dairy exports accounted for 189,000 jobs that are dependent
on the state's milk production and processing.
"The dairy industry's contributions are vital to California's economy, from creating jobs to
stimulating local and regional economies to providing nutritious
and enjoyable products to consumers everywhere," said John Talbot, CEO at the California Milk Advisory
Board. "A large number of California residents depend on the dairy
industry for employment and these jobs would not exist without
it."
The $21 billion to California's gross state product included
$7.4 billion as income to industry
workers and owners and $13.4 billion
through related, outside industries such as feed, veterinary and
accounting services used for dairy production and electricity,
packaging, equipment and trucking services used by processors. The
tax revenue generated from these jobs supported important statewide
initiatives to improve education, healthcare, roads, community
services and the environment.
Overall, 189,000 jobs in California are associated with the dairy
industry. Of this amount, approximately 30,000 jobs are on the farm
and 20,000 jobs represent dairy processing. For every dairy farm
job, there are several more jobs that are tied to the business and
create a linked chain of economic impacts.
Additionally, the induced effect of the dairy industry also
creates jobs in the community to support the area's dairy workers
and their families, such as school teachers and local bus
drivers.
California Holds Rank as Nation's Dairy Leader
California leads the nation in
dairy production and dairy continues as the top commodity in the
country's top agricultural state. It has been the nation's largest
milk producer since 1993 and is also the country's leading producer
of butter, ice cream, nonfat dry milk and whey protein concentrate.
California is also the second
largest producer of cheese and yogurt.
Farm milk sales generated $9.4
billion gross revenue in 2014. Wholesale dairy product
(cheese, fluid milk, ice cream, butter and other dairy) sales hit
$25 billion in 2014.
Dairy Farmers Improve Business Performance
As an essential part of California's farming heritage, dairy farmers
understand the importance of protecting the land, water and air for
their families, their communities and future generations. In 2014,
California dairy farmers produced
more milk with fewer resources. Talbot credits "improved dairy
practices and management adopted by farmers" for the increased
business efficiencies. The pounds of milk produced per cow
increased to 24,000 pounds in 2014 from 15,000 in 1984. Farmers are
applying 23 percent less water to their fields than they did in the
early 1980s and have seen their average crop yields increase by
more than 40 percent despite using less water.
Beyond the economic impacts calculated in the report,
California dairy farmers and
employees are active participants in their communities and
contribute to social, environmental and other broad public
goals.
Study Leaders and Methodology
The study was conducted by a team of researchers at the
University of California Agricultural
Issues Center (AIC). Daniel A.
Sumner, the director of AIC who holds the Frank H. Buck, Jr.
Chair Professorship in the department of Agricultural and Resource
Economics, UC Davis, led the study. Josue MedellĂn-Azuara, a
project scientist at the UC Davis Center for Watershed Sciences,
and Eric Coughlin, a junior research
specialist at AIC, were part of the research team. They measured
myriad impacts using dairy-specific data for 2012 and projections
for 2014 and a database and model of economic linkages
(IMPLAN).
About the California Milk Advisory
Board
The California Milk Advisory Board (CMAB), an instrumentality of
the California Department of Food and Agriculture, is funded by the
state's more than 1450 dairy families. With headquarters in
South San Francisco and
Modesto, the CMAB is one of the
largest U.S. commodity boards. It executes advertising, public
relations, research and promotions on behalf of California dairy products, including Real
California Milk and Real California Cheese. For more, visit
RealCaliforniaMilk.com.
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SOURCE California Milk Advisory Board