Food Processing is the Largest Manufacturing Sector in the Georgia Economy Tobacco 0.6% Textiles 16.9% Apparel 2.2% Nonmetals 9.4% Wood & Paper 10.6% Chemicals 4.6% Employment 32,261 1,398 695 75,584 9,790 22,772 8,419 46,527 904 198,350 Furniture & Related Miscellaneous 1.9% 1.5% Transportation Food Products Equipment 20.2% 12.3% Electrical Beverages Computers 3.7% 1.5% 3.2% Tobacco Machinery 3.8% 4.6% Textiles 13.6% Wood & Paper Chemicals 9.8% 9.0% Printing Petroleum & Coal 1.4% 0.7% Food Products 15.2% Beverages 0.8% Machinery 5.1% Metals 7.5% Food Products Account for 20.2% of Georgia Manufacturing Output Nonmetals 6.5% Miscellaneous 3.4% Computers 3.1% Output in Employment and Georgia Manufacturing Metals 5.3% Furniture & Related 3.1% Transportation Equipment 8.8% Electrical 3.7% Value of Sales for Leading GA Manufacturing Industries $Billion Food Processing 16.8 Carpet & Rug Mills 10.4 Automobiles & Parts 8.9 Fabric Mills 7.4 Aircraft & Parts 6.5 Food Processing: Annual Economic Benefits to Major Sectors, Georgia Sector Output ($) Income ($) Agriculture 3,884,794,624 973,096,448 Mining & Construction 131,820,020 55,230,333 Utilities 470,354,944 94,983,280 Manufacturing 19,656,339,456 2,879,415,808 Transportation, Warehousing 1,013,493,824 422,485,120 Trade 2,261,096,448 989,616,288 Finance, Insurance, & Real Estate 1,524,671,744 409,178,872 Services 4,060,007,680 1,749,726,664 Government & Non NAIC’s 724,511,936 42,700,296 Total 33,727,090,676 7,616,433,109 Food Products Account for 15.2% of Georgia Manufacturing Employment Apparel 1.0% Source: Center for Agribusiness and Economic Development Petroleum & Coal 0.3% Printing 4.8% Source: Center for Agribusiness and Economic Development The Food Processing Industry in Georgia The Center for Agribusiness and Economic Development is a unit of the College of Agricultural and Environmental Sciences, combining the missions of research and extension. The University of Georgia and Fort Valley State University, the U.S. Department of Agriculture and counties of the state cooperating. The Cooperative Extensions Service offers educational programs, assistance and materials to all people without regard to race, color, national origin, age, gender or disability. An equal opportunity/affirmative action organization committed to a diverse work force. J. Scott Angle, Dean and Director Center for Agribusiness and Economic Development John C. McKissick, Coordinator The Lumpkin House, Athens, Ga. 30602 Phone: 706-542-0760 Fax: 706-542-8934 Email: caed@agecon.uga.edu To access this brochure series as well as other data related to Georgia and its counties, visit our Web site at: www.caed.uga.edu www.georgiastats.uga.edu Brochure Series 06-01 Center for Agribusiness and Economic Development “Adding Value to Georgia’s Agricultural Economy Through Research and Extension” Source: Center for Agribusiness and Economic Development Georgia’s Food Processing Industry Dressings & Spices, 1.6% Milling, 1.7% Oilseeds, 5.7% Roasted Nuts, 2.3% Other, 2.8% Dressings & Spices, 1.6% Milling, 1.7% Oilseeds, 5.7% Roasted Nuts, 2.3% •According to the USDA Economic Research Cookies, Crackers, Service, U.S. food expenditures are Other Snack Foods, projected to rise 26 percent between 2000 – 11.5% 2020, boosting food sales of supermarkets, Baked Products and Other Pastries, 6.0% restaurants, fast food outlets, and other retail food establishments by $208 billion. Seafood, 0.8% Source: America’s Changing Appetite: Food Consumption and Spending to 2020, Economic Research Service, USDA. Oils Refining & Blending, 2.5% Cereal, 2.2% Sugar and Confectionery, 4.1% Flour Products, 2.1% Cookies, Crackers, Other Snack Foods, 11.5% Oils Refining & Blending, 2.5% Cereal, 2.2% Frozen, Canned, & Dried, 2.8% Milk & Dairy, 3.1% Baked Products and Sugar and Other Pastries, 6.0% Confectionery, 4.1% Flour Products, 2.1% Meat Processing, not Poultry, 14.4% Seafood, 0.8% Frozen, Canned, & Dried, 2.8% Milk & Dairy, 3.1% Poultry Processing, 36.3% Meat Processing, not Poultry, 14.4% Georgia Food Processing Output in 2005 was $16.8 Billion 35 Poultry Processing, 36.3% Food processing led to additional economic activity that totaled $33.7 billion. This output involved 198,400 jobs and income earnings of $7.6 billion for Georgia employees and proprietors. 30 25 $Billions •Output in Georgia’s Food Processing industry is projected to increase by 29.9 percent between 2006 – 2011, with Animal Slaughtering and Processing continuing to make up the largest share of the total. Other, 2.8% Food Processing Output Totaled $16.8 Billion in 2005 Source: Center for Agribusiness and Economic Development Source: Georgia Economic Modeling System (GEMS) State 20 10 of Georgia baseline report, compiled by the Center for Agribusiness and Economic Development. $33.727 15 $16.835 $16.892 Direct Output Indirect Output 5 0 Top trends in food processing (www.Food Processing.com, January 2006) 1. Organic Demand 2. Health and Wellness 3. Dietary Needs Change with Age Food Processing Has a $33.7 Billion Economic Output Impact for the Georgia Economy Source: Center for Agribusiness and Economic Development Examples Non-GMO (Genetically Modified Organism), Fair Trade, Sustainability, Regional, Minimalism, “Natural” Diabetes and Obesity, Child Health, Food Safety, Women’s Health, Allergies and Immunity, Well-Being, Energy 200 150 Aging Population, Teens, Young Children 4. Portion Control Serving Size, Convenience 5. Globalization Ethnic Flavors, Multinational Production Regulations 6. Special Concerns Food Safety, Certification and Oversight, Spiritualism 1000's Trend Total Output 198.4 100 134.0 50 64.4 0 Direct Employment Indirect Employment Total Employment Food Processing Leads to Over 198,000 Jobs In Georgia Source: Center for Agribusiness and Economic Development