June 6, 2023

American dairy industry increases US economic impact by US$41 billion

According to the latest International Dairy Foods Association (IDFA) economic impact report, the US dairy industry added nearly 60,000 new jobs, increased average wages by 11%, and increased its total impact on the US economy by US$41 billion, Dairy Foods reported.

IDFA's 2023 Economic Impact Study showed that the combined impact of the dairy industry, including the milk, cheese, ice cream, cultured dairy products, and ingredients sectors, totaled US$793.75 billion. The report, which was released at the start of National Dairy Month, is done every two years to quantify the industry's impact on local, state, and national economies.

The newly released data showed that the US dairy industry now supports 3.2 million total jobs, including 1.078 million jobs in dairy product manufacturing, up from 1.018 million jobs in 2021. Workers in the dairy industry will earn US$49 billion in direct wages, up from US$42 billion in 2021. The country also received US$72.0 billion in federal, state, and local taxes (excluding consumer sales taxes), up from US$67.1 billion in 2021, representing 3% of US GDP.

Michael Dykes, IDFA president and chief executive officer, said the US dairy industry is expanding to meet intense global demand, which means more jobs, higher wages, more tax breaks, and more economic growth for communities across the country.

The increase in jobs and economic impact comes as demand for US dairy continues to rise. The USDA reported in September 2022 that per capita dairy consumption in the country increased by 12.4 pounds per person in 2021, continuing a 50-year growth trend that began in 1975, when the USDA began tracking annual consumption.

-      Dairy Foods