Claim: Dairy industry responsible for more than 443,000 California jobs

MODESTO
February 2, 2010 5:44am
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•  Accounts for 3 percent of state’s job production

•  ‘A herd of 100 cows creates 25 jobs for California residents each year’


California’s dairy industry, much of it located in the Central Valley, was responsible for creating a total of 443,574 jobs and $63 billion in economic activity for the state in 2008, the dairy industry’s marketing arm claims.

The typical California dairy cow and farm stimulates a positive ripple effect throughout the state, according to the research conducted by J/D/G Consulting Inc., an independent dairy industry research firm based in Florida and paid for by the California Milk Advisory Board.

It says the typical dairy farm in California generates $33.1 million in economic activity and 232 jobs in the state, including “on-the-farm” and “beyond-the-farm” jobs like milk tanker drivers, grocery store clerks, feed farmers and employees at milk processing and cheese plants, among others.

The dairy industry provides more economic stimulus and jobs to the state yearly than either the iconic motion picture/television or wine industries, the milk marketers claim.

The most recent statistics available for these industries. Provided by the industries, show that the motion picture/television industry contributes $35 billion and 208,230 jobs (2007) and the wine industry provides $59 billion and 330,000 jobs (2008).

“This research offers a perspective on how vital the dairy industry is to California with every dollar from production and sales of California milk contributing to the economy,” says Stan Andre, chief executive officer of the CMAB. “In addition to providing one of the four food groups that feeds our local communities, a typical dairy cow generates more than $34,000 in economic activity and a herd of 100 cows creates 25 jobs for California residents each year.”

California’s dairy families were responsible for producing more than 41 billion pounds of milk in 2008, a figure that is expected to exceed 46 billion pounds by 2020, the CMAB says.

According to the study, in 2008 California had 1,905 dairies with 1.8 million dairy cows that supplied milk to 117 dairy processing plants, which produced cheese, fluid milk, ice cream, butter and other dairy products that carry the “Real California Milk” and “Real California Cheese” seals. These seals help consumers identify dairy products made with milk from California dairy farms.

Study Methodology

This analysis of the California dairy business by J/D/G Consulting Inc. relies on numerous sources of published data that measure various aspects of milk production, dairy product production, dairy food distribution, grocery retailing and foodservice businesses.

It also uses economic output, earnings and employment multipliers developed by the U.S. Department of Commerce, Bureau of Economic Analysis (BEA). BEA-developed multipliers are provided for a host of industries, including milk production/dairy farming and dairy processing/manufacturing for each state.

The same study last conducted in 2007 showed California dairies created $61 billion in economic activity and 435,000 jobs for the state.

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