Food processing has generated nearly 15,000 jobs in SJ County

Sector generates nearly 15,000 jobs in the county

By The Record

Posted May. 19, 2015

Food and beverage processing is an important part of the San Joaquin County economy, generating $1.34 billion in total value-added activity and nearly 14,900 jobs, or 9 percent of total employment, in 2012, according to a recent University of California report.

Taking out indirect and induce impacts, food and beverage processing accounted for $683 million of direct economic activity in the county, said the report in the latest issue of the UC’s Agricultural and Resource Economics Update.

Indirect impacts may include income for businesses that supply containers or packaging to a winery, for example. While induced impacts may include the restaurants and banks supported by the salaries of the winery and packaging company workers.

Researchers estimate that California’s food and beverage processing sector directly accounted for nearly $25.2 billion in value-added activity statewide. That impact rose to $82 billion, once indirect and induced impacts are included.

The sector generated more than 760,000 California jobs, direct, indirect and induced, in 2012.

Based upon its direct value-added contribution, food and beverage processing is the state’s third-largest manufacturing sector, comprising 9.2 percent of California manufacturing’s total. It is behind electronic and computer equipment at nearly 35 percent and chemical manufacturing, almost 16 percent of all manufacturing activity.

Sprawling Los Angeles County leads the state in food and beverage processing, with direct value-added activity pegged at $6.08 billion and, once indirect and induced values are added, $11.6 billion in total value-added. The sector accounts for more than 103,000 jobs in Los Angeles, or about 3 percent of the county’s employment.

Stanislaus County, home to Gallo and other major wineries, and several large canneries, is second in terms of total value-added activity and employment, according to the UC report.

Food and beverage processing in Stanislaus accounted for $1.26 billion in direct value-added economic activity in 2012, with indirect and induced impacts adding over $1 billion more in value-added output. The sector was responsible for generating nearly 25,000 total jobs, or one of every five jobs in the county.

http://www.recordnet.com/article/20150519/NEWS/150519594