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

Central Valley

Agriculture Prowess

• Stanislaus County 2003Gross 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

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

• 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 245Alliance BRC

• 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

• Food Manufacturing Employment11,100 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

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

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

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

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

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

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

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 8CPPS CSU Stanislaus “A Job is Not a Job” 1998

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 14.2CPPS CSU Stanislaus “A Job is Not a Job” 1998

“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