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California dairy worth $21 billion to state economy

Creates a ripple effect of nearly $65 billion

By Diego Flammini, Farms.com

According to a California Milk Advisory Board (CMAB) study, the dairy industry in California was responsible for about $21 billion to the state’s gross state product in 2014.

Dairy farmers in California were also responsible for selling upwards of $9.4 billion of milk.

Dairy cow

The CMAB study that was completed by the University of California Agricultural Issues Center (AIC), concluded that when inputs, raw milk and wholesale milk product sales, exports opportunities and the 189,000 jobs the industry created were added to the equation, the dairy industry alone contributed about $65 billion to California’s economy in 2014.

"The dairy industry's contributions are vital to California's economy, from creating jobs to stimulating local and regional economies to providing nutritious and enjoyable products to consumers everywhere," said John Talbot, CEO at the California Milk Advisory Board. "A large number of California residents depend on the dairy industry for employment and these jobs would not exist without it."

Talbot credits the dairy farmers and their “improved dairy practices and management” as integral parts of the dairy industry’s success.

In 1984, dairy farmers were producing about 15,000 pounds of milk per cow. In 2014, that number was about 24,000 pounds.

It’s estimated the farmers are applying about 23% less water on their fields than they did in the 1980s and yet have seen their crop yields increase by an average of 40%.

California has lead the United States in milk production since 1993 when it exceeded Wisconsin’s output. The state accounts for nearly 20% of the whole country’s milk production.

Tell us your thoughts about the dairy industry’s impact in California. What makes it such a great place for dairy production?


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