Contact:
Nick George, President
608-255-9946
Nick.George@mwfpa.org
Brian Elliott
Dir. of Communications
608-255-9946
Brian.Elliott@mwfpa.org
Wisconsin food processors report that the value of processed food shipments in the state reached $35 billion in 2010, more than $1.3 billion over the prior peak level of 2008. The figures come from the Midwest Food Processors Association (MWFPA) and are based on the latest U.S. Census Bureau annual survey of manufacturers. According to Nick George, president of the MWFPA, the increase in the value of shipments is an indication that consumer demand continues to grow for many processed products. “These figures demonstrate the resiliency of the food manufacturing industry in Wisconsin “he said.
A notable source for this demand comes from abroad. Through September of 2011, Wisconsin led the nation in the export of canned sweet corn among other products. The state’s canned and frozen vegetables regularly rank among Wisconsin’s top ten agricultural exports.
In 2010, processed foods were among the state’s largest exports to Canada, totaling $610.9 million. Japan receives about $74 million in processed food exports from the state.
Processed foods include foods we regularly buy at the grocery store and eat in restaurants. In reality, most foods we eat have undergone some degree of processing. A few examples include canned and frozen fruits and vegetables and packaged foods labeled “natural” or “organic,” such as cereals, meat and poultry, and jarred baby foods. Amid the rise in the value of shipments, the food manufacturing industry employed over 62,000 people in Wisconsin representing 15 percent of manufacturing employment in the state. The food manufacturing industry accounted for $2.5 billion in annual payroll and the industry’s labor income represented 12.7 percent of Wisconsin’s manufacturing total.
Other key findings from the Census Bureau include:
* The food processing industry is Wisconsin’s largest manufacturing industry as measured by value of shipments.
* The largest food processing sector, as measured by value of shipments and value added is dairy product processing. In 2010, dairy manufacturing reported $15.3 billion in shipments (43.7 percent of total food manufacturing shipments). Value added indicates the total worth contributed to a final product as a result of the manufacturing process. Dairy product processing registered $4.0 billion in value added for 2010. The sugar and confectionery sector was the smallest in terms of shipments and value-added.
* In 2010, the Wisconsin food manufacturing sector overall reported value added of $11.8 billion, cost of materials of $2.3 billion, and capital expenditures of $1 billion.
* Dairy processing employs the largest number of workers accounting for 30.4% of all food manufacturing employment. The meat products manufacturing sector came in second place with 30.1%, followed by the fruit and vegetable processing sector with 15.7% of the food manufacturing workforce. The bakeries and tortilla manufacturing sector employed the fewest people with about 7.3% of all food manufacturing employees.
* The Wisconsin food processing industry accounted for 23.4 percent of the total value of shipments by Wisconsin manufacturers in 2010. It is the leading manufacturing employer in the state accounting for 15 percent of all manufacturing employment.
George noted that “firms engaged in the processing of agricultural commodities add income and profits to Wisconsin’s economy while they add value to the agricultural commodities themselves. They transform crops and livestock into products worth more in the world marketplace, and they provide employment and income opportunities to Wisconsin residents.”
The Midwest Food Processors Association is the foremost voice of the food processing industry in the Midwest. The association lobbies on legislative and regulatory matters; promotes safe food processing practices; investigates new technologies; funds industry research; and plans industry events. It represents over 100 processing facilities in Wisconsin, Illinois and Minnesota.
