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Michigan’s Food & Michigan’s Food & Agriculture IndustryAgriculture Industry
Part Of Reinventing Part Of Reinventing MichiganMichigan
Michigan Food and Michigan Food and Agriculture IndustryAgriculture Industry
Contributes $91.4 billion annually to the state’s economy.Employs 923,000 Michigan residents.
Nearly 22 percent of people working in Michigan.
Leads the nation in production of 18 commodities.
Michigan’s Food Michigan’s Food and Agriculture and Agriculture
IndustryIndustry
Food processing contribute $24.6 billion to Michigan’s economy.Employs nearly 130,000 workers.1,841 licensed food processors are located in Michigan.Dairy sector is largest -- $14.7 billion annual impact.54% of dairy sector value is in processing.
By 2050By 2050
World’s population will reach 9.1 billion – 34% increaseFood production must increase 70%
to meet growing demand of an expanding population.
70% of world’s population will be urban – 49% today.
Developing countries net imports of cereals will more than double.
GoalsGoals
Outcomes 2011 20152012 Status
Increase economic impact of food and agriculture
$71 billion $100 billion $91.4 billion
Double agriculture exports $1.75 billion $3.5 billion $2.83 billion
Increase food and agricultural jobs
1 million 1.1 million 923,000
Improve access to healthy foods
40% of residents
60% of residents
TBD
Increase sustainable food and agriculture systems
1,000 verifications
5,000 verifications
1,331
Future Future OpportunitiesOpportunitiesReliance on Reliance on
Integrity of IndustryIntegrity of IndustryAssure food safetyProtect Animal and plant healthSustain environmental stewardshipProvide consumer protectionEnable rural development
Actions to Actions to Meet GoalsMeet Goals
Increase economic impact of food and agriculture
Minimizing areas of the state affected by Bovine TB Program by working towards obtaining Bovine TB Free Status for Michigan.
Increased migrant labor housing inspections.Conduct Good Agricultural Practices (GAP), Good Handling Practices
(GHP) audits, and Harmonized Food Safety Standard audits of Michigan grower operations.
Provide regulatory oversight of grain elevators in the business of receiving, buying, exchanging, selling, or storing farm produce.
Two new employees to partner with MEDC to enhance growth opportunities within the food and agriculture industry. MDARD is funding a half an agriculture specialist position at MEDC to further advance food and agriculture business opportunities.
Actions to Actions to Meet GoalsMeet Goals
Double agriculture exports300 companies looking for export market assistance
annually. Hired one additional export market specialist.
Maintain accredited lab to verify MRL requirements are met for exportation of crops.
Issue phytosanitary certificates that certify products meet the requirements of importing countries.
Administer and publicize USDA’s Blueberry Certification Program for exporting blueberries to Canada.
Future Future OpportunitiesOpportunities
Export MarketsExport Markets
2011 Michigan Exports$2.8 billion generatedEmployed more than 20,000
workersAccounted for 27% of the value of
Michigan farm receiptsRanked 5th and 10th respectively
for national exports of fruits and vegetables
Top Markets: Canada, Mexico, Japan, South Korea, and China
Actions to Actions to Meet GoalsMeet Goals
Increase Food & Agriculture Jobs
Agriculture Development staff are working with workforce training partners in MEDC regions.
Working with higher education partners to develop industry specific job training.
Growing sector will lead to increased jobs in the food and agriculture sector.
Actions to Actions to Meet GoalsMeet Goals
Improve access to healthy foods
$977,421 in grants for regional food systems. Grants will serve as a catalyst for organizing local food entrepreneurs and locally grown food.
$930,810 in grants for value added projects. One project focuses on expanding increased use of local livestock in a meat processing facility. Another will look at the feasibility of a pork processing plant in Michigan.
Conduct food safety monitoring in order to determine the existence and levels of pesticide residues on fresh fruits and vegetables.
Actions to Actions to Meet GoalsMeet Goals
Increase Food & Agriculture Jobs
Additional funding in FY 2013 to support 12 new local conservation district technicians bringing the total number of technicians to 36 and two additional internal staff bringing the total number of MDARD verifiers to five.
FY 2013 goal of 700 new verifications and 300 reverifications.
Commitment to Commitment to Grow Land Based Grow Land Based
Industries:Industries:
Agriculture, Agriculture, Forestry, Forestry,
and Miningand Mining
Rural Rural Development Development
StrategyStrategy
Strategic Objective for a Quality of Life Increase economic opportunity and quality
in rural communities.Retain educated and trained young people
in rural communities.Expand access to a safe and healthy food
supply.
Rural Rural Development Development
Strategy Strategy
How will we accomplish these objectives?
Build on existing economic and rural development activities.
Champion regional-based approaches.
Lead utilization and coordination of private and public assets.
Regional ProcessorRegional
Processor
Regional End-buyerRegional
End-buyer
FarmFarmFarmFarm
FarmFarm FarmFarm
Aggregation point/ food
hub
Aggregation point/ food
hub
Example of a Example of a Regional Food Regional Food
SystemSystem
Regional distributorRegional
distributor
FarmFarm
Local marketsLocal distributionLocal processors
Local marketsLocal distributionLocal processors
Regional Food Hubs Business Clusters Geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular sector present within a region. (From Michael Porter, Harvard University Business School) Found at:
http://www.isc.hbs.edu/econ-clusters.htm
Regional Food Regional Food Hubs and Hubs and Business Business ClustersClusters
Working Definition -A centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally food products. (Jim Barham, USDA)Definitions vary from narrow market efficiency functions to those related to visions of building a diversified food culture.
Area: 7,048 square miles (4,178,705 acres of land)Population: 5,192,161Counties:
Genesee, Lapeer Lenawee, Livingston, Macomb Monroe, Oakland, St. Clair, Washtenaw, WayneWatersheds:
Huron, Raisin, Stony Creek, Rouge, Clinton, Pine, Belle, Black, Saginaw,
Manistee
Southeast Southeast DistrictDistrict
Regional Rankings (Out of 9):#1 in Michigan in number of whole food (439), dairy (27), and meat (23) processing plants.#1 in Michigan in number of retail food (7,639) and food service (18,564) establishments.#1 in Michigan in number of farms using organic methods (135; 37 certified)#1 in Michigan in acres of tomatoes (1,969)#2 in Michigan in value of direct-to-consumer sales ($14,407,000)
Area: 570 square miles (306,670 acres of land)Population: 831,077Largest City: WarrenWatersheds: Clinton and Belle
Macomb CountyMacomb County
Top 10 Rankings:#2 in Michigan in meat processing plants (4).#3 in Michigan in number of food service establishments ( 2,732).#3 in Michigan in direct-to-consumer sales ($3,507,000)#3 in Michigan in number of agriculture operations (4)#4 in Michigan in number of whole food processing plants (59)#6 in Michigan in revenue from nursery greenhouse, floriculture, and sod ($27,159,000)#8 in Michigan in number of food warehouses (28).
Agriculture Agriculture Development Development
SpecialistsSpecialists
Michigan Dept. of
Agriculture & Rural
Development
MIagriculture
Michigan Departmentof Agriculture
@MichDeptofAg