September 22, 2005

California's dairy business now worth US$47 billion
 

California's dairy business generated US$47.4 billion in economic activity within the state and created 434,200 full-time jobs in 2004, according to a study released this month by the California Milk Advisory Board (CMAB).

The economic study points out the dynamic growth the Californian dairy industry-the largest in the country-has enjoyed in recent years and assesses all aspects of the state's dairy business, from the production of milk and dairy products to retail sales.

The study updates a 2002 study that placed the industry's economic impact on the state at US$35.1 billion.

According to the study, California has 2,107 dairy farms with 1.7 million dairy cows supplying milk to 139 dairy plants in the state producing dairy products such as cheese, ice cream and butter.

The study documents California's emergence as a national leader in dairy product production, pointing out that 45 percent of milk produced is now sold outside of California, mainly in the form of cheese, butter and non-fat dry milk.

The study also forecasts continued strong growth for the industry, projecting that total milk production will grow 27 percent to 46.3 billion pounds by 2015.

In fact, California's total milk production has increased every year since 1985 and reached 36.4 billion pounds in 2004, while the number of milk cows in the state has increased from 1.041 million in 1985 to 1.725 million in 2004.

During this same period, the national herd shrank nearly 2 million cows to about 9 million.