The US fruit, vegetable and mass-market floral industry contributes US$554bn annually to the nation’s economy, impacting every state and every congressional district in the country, according to a new study released yesterday (17 February) by the Produce Marketing Association (PMA).
Conducted by Battell Technology Partnership, the first-of-its-kind economic impact study of the industry – titled Economic Reach and Impact of the Fresh Produce and Floral Industry – reached across the value chain from the farm all the way through retail and foodservice.
“Our industry has substantial economic and employment impact in the US, contributing significantly to the economies of every state and congressional district in the country,” said PMA president and CEO Bryan Silbermann.
Overall, the study determined the US fresh produce and mass-market floral industry accounts for more than US$275bn in direct economic output, and a total economic impact of more than US$554bn when its “ripple” effects are included. Every dollar of production value ultimately generates US$16.75 of total economic value.
The industry’s total impact represents 4.23 per cent of US gross domestic product (GDP), and one-third of total US animal and crop production.
“We account for 1.9 per cent of all U.S. employment, providing the equivalent of 2.7m full-time positions, and nearly US$72bn in wages,” said Kathy Means, PMA vice-president for government relations and public affairs.
The produce and mass-market floral industry contributed US$1bn or more in more than half of all congressional districts, with significant employment in many states – 100,000 FTEs or more in five states and more than 50,000 in 15 states.”
The Battelle report offers critical new information on a previously little-studied industry, according to the PMA, and the results have “significant application” to federal, state and local government efforts including lobbying, policymaking and program funding.
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