Michigan’s Food & Agriculture
Industry
Part Of Reinventing
Michigan
Michigan Food and
Agriculture Industry
Contributes $91.4 billion annually to the state’s
economy.
Employs 923,000 Michigan residents.
Nearly 22 percent of people working in
Michigan.
Leads the nation in production of 18
commodities.
Michigan’s Food
and Agriculture
Industry
Food processing contribute $24.6 billion to
Michigan’s economy.
Employs nearly 130,000 workers.
1,841 licensed food processors are located in
Michigan.
Dairy sector is largest -- $14.7 billion annual
impact.
54% of dairy sector value is in processing.
By 2050
World’s population will reach 9.1 billion – 34% increase
Food production must increase 70%
to meet growing demand of an
expanding population.
70% of world’s population will be
urban – 49% today.
Developing countries net imports of
cereals will more than double.
Goals
Outcomes
2011
2015
2012
Status
Increase economic impact
$71 billion
of food and agriculture
$100 billion $91.4 billion
Double agriculture exports $1.75 billion
$3.5 billion $2.83 billion
Increase food and
1 million
agricultural jobs
Improve access to healthy
40% of
foods
residents
Increase sustainable food
1,000
and agriculture systems
verifications
1.1 million
60% of
residents
5,000
verifications
923,000
TBD
1,331
Future Opportunities
Reliance on
Integrity of Industry
Assure food safety
Protect Animal and plant health
Sustain environmental stewardship
Provide consumer protection
Enable rural development
Actions to Meet
Goals
Increase economic impact of food and agriculture
Minimizing areas of the state affected by Bovine TB Program by working towards
obtaining Bovine TB Free Status for Michigan.
Increased migrant labor housing inspections.
Conduct Good Agricultural Practices (GAP), Good Handling Practices (GHP)
audits, and Harmonized Food Safety Standard audits of Michigan grower
operations.
Provide regulatory oversight of grain elevators in the business of receiving,
buying, exchanging, selling, or storing farm produce.
Two new employees to partner with MEDC to enhance growth opportunities
within the food and agriculture industry. MDARD is funding a half an agriculture
specialist position at MEDC to further advance food and agriculture business
opportunities.
Actions to Meet
Goals
Double agriculture exports
300 companies looking for export market assistance
annually. Hired one additional export market specialist.
Maintain accredited lab to verify MRL requirements are met
for exportation of crops.
Issue phytosanitary certificates that certify products meet
the requirements of importing countries.
Administer and publicize USDA’s Blueberry Certification
Program for exporting blueberries to Canada.
Future Opportunities
Export Markets
2011 Michigan Exports
$2.8 billion generated
Employed more than 20,000 workers
Accounted for 27% of the value of
Michigan farm receipts
Ranked 5th and 10th respectively for
national exports of fruits and vegetables
Top Markets: Canada, Mexico, Japan,
South Korea, and China
Actions to Meet
Goals
Increase Food & Agriculture Jobs
Agriculture Development staff are working with workforce
training partners in MEDC regions.
Working with higher education partners to develop industry
specific job training.
Growing sector will lead to increased jobs in the food and
agriculture sector.
Actions to Meet
Goals
Improve access to healthy foods
$977,421 in grants for regional food systems. Grants will
serve as a catalyst for organizing local food entrepreneurs
and locally grown food.
$930,810 in grants for value added projects. One project
focuses on expanding increased use of local livestock in a
meat processing facility. Another will look at the feasibility
of a pork processing plant in Michigan.
Conduct food safety monitoring in order to determine the
existence and levels of pesticide residues on fresh fruits
and vegetables.
Actions to Meet
Goals
Increase Food & Agriculture Jobs
Additional funding in FY 2013 to support 12 new local
conservation district technicians bringing the total number
of technicians to 36 and two additional internal staff
bringing the total number of MDARD verifiers to five.
FY 2013 goal of 700 new verifications and 300
reverifications.
Commitment to Grow
Land Based Industries:
Agriculture,
Forestry, and
Mining
Rural Development
Strategy
Strategic Objective for a Quality of Life
Increase economic opportunity and quality in rural
communities.
Retain educated and trained young people in rural
communities.
Expand access to a safe and healthy food supply.
Rural Development
Strategy
How will we accomplish these objectives?
Build on existing economic and rural development
activities.
Champion regional-based
approaches.
Lead utilization and
coordination of private and public assets.
Example of a Regional
Food System
Farm
Farm
Local markets
Local distribution
Local processors
Regional
End-buyer
Aggregation
point/ food
hub
Farm
Regional
Processor
Regional
distributor
Farm
Farm
Regional Food Hubs
and Business
Clusters
Regional Food Hubs
Working Definition -A centrally
located facility with a business
management structure
facilitating the aggregation,
storage, processing,
distribution, and/or marketing
of locally/regionally food
products. (Jim Barham, USDA)
Definitions vary from narrow
market efficiency functions to
those related to visions of
building a diversified food
culture.
Business Clusters
Geographic concentrations of
interconnected companies,
specialized suppliers, service
providers, and associated
institutions in a particular
sector present within a region.
(From Michael Porter, Harvard
University Business School)
Found at:
http://www.isc.hbs.edu/econ-
clusters.htm
Southeast District
Area: 7,048 square miles (4,178,705
acres of land)
Population: 5,192,161
Counties:
Genesee, Lapeer Lenawee,
Livingston, Macomb
Monroe, Oakland, St. Clair,
Washtenaw, Wayne
Watersheds:
Huron, Raisin, Stony Creek,
Rouge, Clinton, Pine, Belle,
Black, Saginaw,
Manistee
Regional Rankings (Out of 9):
#1 in Michigan in number of whole
food (439), dairy (27), and meat (23)
processing plants.
#1 in Michigan in number of retail
food (7,639) and food service
(18,564) establishments.
#1 in Michigan in number of farms
using organic methods (135; 37
certified)
#1 in Michigan in acres of tomatoes
(1,969)
#2 in Michigan in value of direct-toconsumer sales ($14,407,000)
Macomb County
Area: 570 square miles (306,670
acres of land)
Top 10 Rankings:
Population: 831,077
#2 in Michigan in meat processing plants (4).
Largest City: Warren
#3 in Michigan in number of food service
Watersheds: Clinton and Belle
establishments ( 2,732).
#3 in Michigan in direct-to-consumer sales
($3,507,000)
#3 in Michigan in number of agriculture
operations (4)
#4 in Michigan in number of whole food
processing plants (59)
#6 in Michigan in revenue from nursery
greenhouse, floriculture, and sod ($27,159,000)
#8 in Michigan in number of food warehouses
(28).
Agriculture
Development
Specialists
Michigan Department
of Agriculture
@MichDeptofAg
Michigan Dept.
of Agriculture
& Rural
Development
MIagriculture