Gov. Rick Snyder says economic impact of food, agriculture industry surpasses $100 billion goal
MSU Product Center estimate shows impact now at $101.2 billion
Wednesday, Oct. 29, 2014
LANSING, Mich. –Gov. Rick Snyder today announced that Michigan’s food and agriculture system has surpassed its economic impact goal of $100 billion.
According to an interim estimate by the Michigan State University Product Center, Michigan’s agri-food system has reached a total annual economic impact of $101.2 billion. Snyder has continually encouraged the industry to set its sights on topping the $100 billion mark.
“Michigan’s food and agriculture businesses have helped lay the foundation for our economic turnaround,” Snyder said. “They recognize the value of investing in their communities and creating hometown jobs. Let’s keep this great momentum going. The future is exciting for this dynamic industry.”
“We are known for crop diversity as well as safe, high-quality products to meet growing global consumer demand. Michigan is well-poised to see increased development in the food and ag arena,” said Jamie Clover Adams, director of the Michigan Department of Agriculture and Rural Development. “It’s a great time to be in food and agriculture. We are innovators, and the possibilities for career opportunities, new business creation and expansion are bountiful.”
The study was first conducted in 2006 using 2004 data. Then, the food and agriculture system was determined to be valued at $60.1 billion. An interim estimate in 2009 showed an increase in value to $71.3 billion. In 2012, the study highlighted more growth, pegging it at $91.4 billion. The newest estimate shows the food and agriculture system continues on a consistent growth trend.
Chris Peterson, director of the MSU Product Center and the study’s lead investigator, said strong commodity and food prices, along with growing domestic and global demand, help drive the increase.
“The study includes direct and multiplier effects of numerous aspects of the agri-food system,” he explained. “The impact of production agriculture alone is nearly $13.6 billion, or 13.4 percent of the overall total.”
The MSU Product Center produced the interim estimate at the request of the Michigan Department of Agriculture and Rural Development. The last full report was issued in 2012 using 2010 data. Data from 2015 will be used to generate the next full report in 2017.
“Data from several different sources are used to create this report,” Peterson said. “Unfortunately, full data sets are only available every five years.”
The MSU Product Center provides coordinated, university-wide assistance to help Michigan entrepreneurs develop and commercialize high-value, consumer–responsive products and businesses in the agriculture, food, natural resources and bio-processing sectors.