The Economic and Employment Contributions of the Food Processing Industry to the Central Valley

1
The Economic and Employment Contributions of the
Food Processing Industry to the Central Valley
2
Agriculture Prowess

• Stanislaus County 2003
• Gross Agricultural Income 1,454,932,000
• Over 4200 farms
• 805,510 acres in farms
• 1.5 reduction from 2002
• Every 1 of production generates 3.50 from
• processing, packaging, marketing, retailing
• Stanislaus County Department of Agriculture
  Annual Crop Report 2003

3
Major Community Employers

• Signature Fruit 4,292
• E J Gallo Winery 3,280
• Del Monte Foods 2,600
• Stanislaus Food Products 2,000
• Foster Farms 1,592
• ConAgra 1,098
• Patterson Frozen Foods 725
• Frito-Lay 700
• Hershey Foods 670
• Racor 650

4

• Bronco Wine 500
• Silgan Containers 474
• Foster Farms Dairy 450
• Valley Fresh Foods 435
• California Fruit Tomato 400
• Pacific Southwest Containers 351
• Monschein Industries 331
• Valley Sun Products 316
• Ball Corporation 281
• Varco-Pruden Buildings 270
• International Paper 245
• Alliance BRC

5

• 18 of the top 21 Private Sector Employers are
  engaged in Food Processing, Packaging, Packaging
  Materials and Marketing
• These 18 employers provide jobs to 20,409
  individuals
• 2002 Food Manufacturing Payroll totaled
• 326,900,000
• Alliance BRC

6

• Food Manufacturing Employment
• 11,100 represents 7.11 of all employment
• Beverage Industry Employment
• 3,780 represents 2.25 of all employment
• 9.36 of all Stanislaus employment is found in
  the food and beverage production industry
• California EDD

7
Industry Employment Multipliers

• Government 1.56
• Retail 1.43
• Health Services 1.81
• Durable Manufacturing 2.23
• Trans. Public Utilities 2.49
• Mfg./Food and Kindred 2.80
• CPPS CSU Stanislaus New Valley Connexions

8
Definitions

• Direct Effects-Represents impacts for the
  expenditures and or production values specified
  as direct final demand changes.
• Indirect Effects-Represents the impacts caused by
  the iteration of industries purchasing from
  industries resulting from direct final demand
  changes.
• Induced Effects-Represents the impacts on all
  local industries caused by the expenditure of new
  household income generated by the direct and
  indirect effects of direct final demand changes
• Total impact is the sum of direct,indirect and
  induced efforts.
• IMPLAN Pro

9
IMPLAN Database Analysis

• Example Business engaged in Canning Food
  employing 200
• Direct impact 200 jobs.
• Indirect impact 187 jobs
• Induced impact 108 jobs
• Total Impact 495 jobs

10
IMPLAN Analysis

• Segment of Food Processing Industry in
  Stanislaus- Industries employing 10,600
• Direct Impact 10,600 employees
• Indirect Impact 9,893 jobs created
• Induced Impact 5,708 jobs created
• Total Impact 26,201 Jobs

11
IMPLAN Analysis Output

• Food Processor employing 200
• Direct Impact 47,615,520
• Indirect Impact 21,425,467
• Induced Impact 9,188,339
• Total Impact 78,229,329

12
Food Manufacturing Impact

• Stanislaus Gross Metropolitan Product
• (GMP) in 1997 (billions) 11.15
• Food Mfg. Value Added 1.66
• Food Mfg. Cost of Materials 2.0
• Food Manufacturing Shipments
• 3,680,000,000
• Accounting for 33 of Total GMP
• 1997 Economic Census, Report by Global Insight

13
Stanislaus Industry Exports as a Percent of Total
Exports

• Industry Sector Exports as a of Total
  Exports
• Mfg/Food Kindred 49
• Mfg/Durable 15
• Farm Production 13
• Health Services 6
• F.I.R.E. 5
• Retail Trade 4
• Other 8
• CPPS CSU Stanislaus A Job is Not a Job 1998

14
Industry Output as a Percent of Total Industry
Output

• Government 6.4
• Health Services 7.0
• Business Services 1.5
• F.I.R.E. 12.0
• Retail Trade 8.0
• Wholesale Trade 4.5
• Trans./Public Utilities 5.0
• Mfg/Durable 7.0
• Mfg/Other nondurable 4.4
• Mfg/Food and Kindred 19.9
• Farm Production 10.1
• Others 14.2
• CPPS CSU Stanislaus A Job is Not a Job 1998

15

• While common sense points to the importance of
  agriculture to the northern San Joaquin Valley,
  it is the scale of the impacts that are striking.
  In fact, the agricultural cluster clearly stands
  out on every measure of economic activity and
  performance.
• Insight, Winter 1999-2000 New Valley Connexions
  CPPS CSU Stanislaus