SlideShare une entreprise Scribd logo
1  sur  15
Télécharger pour lire hors ligne
SOLANO
 COUNTY’S
 FOOD CHAIN
ASSETS AND OPPORTUNITY IN FOOD
PRODUCTION AND PROCESSING
Solano EDC

Prepared by
Collaborative Economics




                                 AUGUST 2010 DRAFT
Solano EDC                                                                                            CONTENTS
The Mission of the Solano EDC is to attract, grow and retain business and industry                    EXECUTIVE SUMMARY...................................................................................................3
in Solano County that enhance the economic vitality and quality of life in our
communities. We serve as the facilitator of countywide and regional discussions                       THE FOOD CHAIN AS A CLUSTER OF OPPORTUNITY.................................................6
on how to improve the way we work together and take action on critical employer,
                                                                                                          FOOD CHAIN CLUSTER............................................................................................7
transportation, and education issues.
                                                                                                          ECONOMIC IMPACT.................................................................................................9

                                                                                                      ASSETS AND INNOVATION IN SOLANO COUNTY....................................................15

                                                                                                          REGIONAL ASSETS..................................................................................................15

                                                                                                          INNOVATION IS KEY TO THE SUCCESS OF THE REGION’S FOOD CHAIN..........18

                                                                                                      OPPORTUNITIES FOR THE FUTURE............................................................................22


                                                                                                      Appendix A...................................................................................................................24

                                                                                                      Appendix B...................................................................................................................26

                                                                                                      Endnotes.......................................................................................................................27




Prepared by
COLLABORATIVE
ECONOMICS
Doug Henton
John Melville
Tracey Grose
Tiffany Furrell
Amy Kishimura
Bridget Gibbons


Collaborative Economics is a nationally-recognized consulting firm specializing in developing
regional indexes, working with private and public sector leaders to develop innovative solutions to
pressing economic and community challenges, and advising civic entrepreneurs across the country
and globally.
EXECUTIVE SUMMARY                                                                                             The region benefits from many natural assets that support the production of high-
                                                                                                                                  value crops, and the region’s advantageous location between metro areas supports
                    The Food Chain, with its diverse set of industries, plays an important                                        the process and distribution of foods and beverages.
                    role in the vitality of the Solano and Yolo County region. Activities                                         •	 The region’s natural assets include prime agricultural land, stable water resources, and strong winds.
                    associated with the Food Chain span agriculture support and production,                                          The region also benefits from its convenient access to surrounding metropolitan areas major national
                                                                                                                                     highway systems.
                    food processing, packaging and distribution as well as waste byproducts.
                                                                                                                                  •	 Increasing values of agricultural land discourages the expansion of lower valued crops in the region.
                    Innovation is taking place in every segment as consumer demand                                                   The net loss of Agricultural Land has decreased 76 percent since the 2002 to 2004 period.
                    changes and technological advance opens up new opportunities. Food                                            •	 Two of Solano County’s top crops, almonds and walnuts, are currently experiencing rising demand
                    Chain activities are highly concentrated in the region and represent 10                                          locally, nationally, and internationally.

                    percent of total economic output. Statewide, these activities account for
                                                                                                                                  Innovation across the region’s Food Chain is improving process and resource
                    only 6 percent of total output. This report highlights the strengths within                                   efficiencies as well as food quality.
                    the Food Chain and how innovation in each segment can support the                                             •	 Organic farming in Solano and Yolo Counties represents 10 percent of total crop sales in the region, but
                    creation of new markets for regional products and new job opportunities                                          in California as a whole, organics account for only 6 percent.
                    for its residents.                                                                                            •	 The influence of agriculture biotechnology is most prevalent in seed biotechnology research and
                                                                                                                                     production, and 7 of the 10 top seed producers in the world are located in the region. The University
                                                                                                                                     of California at Davis Seed Biotechnology Center also provides valuable research opportunities and
                    The Food Chain in Solano and Yolo Counties is a dynamic system of multi-faceted                                  graduates to fill new jobs in the field.
                    components and interactive processes that are driving competition and boosting the
                                                                                                                                  •	 Farms and businesses in the region are adopting renewable energy systems including wind, solar, and
                    region’s competitiveness in the global food market. Central to the region’s Food                                 biomass.
                    Chain vital cycle is the role of innovation. The segments of the Food Chain consist
                    of 1) Agricultural Support Products and Services, 2) Agricultural and Livestock                               The region is fertile with opportunities for growth across the Food Chain
                    Production, 3) Food Processing and Packaging, 4) Distribution of Food and                                     •	 Farmer’s markets and other forms of Community Supported Agriculture (CSA) present an opportunity
                    Beverages, and 5) New Markets for Waste Byproducts.                                                              for the counties to make the most of local agricultural production, specifically organic products. The
                                                                                                                                     growing demand for local and sustainable products aligns favorably with the resources in the region.
                    The Food Chain contributes significantly to the economic vitality of the region in                            •	 The addition of livestock processing facilities and other intermediate processing facilities will help
                    terms of economic output, employment, and business growth.                                                       maintain the diversity of activities in all segments of the Food Chain in the region. This will create new
                                                                                                                                     markets, jobs, and output value in the local Food Chain.
                    •	 Generating $25 billion in 2009, Food Chain activities represent 10 percent of total regional output.
                       Distribution accounted for nearly one third of Food Chain output and has tripled in value since 1990.      •	 Growing global demand for high-value products such as almonds will create more consistency of
                                                                                                                                     demand as products are sent to multiple and diverse markets across the world.
                    •	 Agricultural Support is larger in employment than any of the other segments in the region, and it is the
                       only segment reporting growth in each of the past 3 years. Employment in this segment is primarily in
                       Services and represents 27 percent of total Food Chain employment in the region.
                    •	 There is a diverse range of occupations and earnings potential within the Food Chain. Between 2001
                       and 2008, Food Chain earnings increased by 12 percent, and the highest average annual earnings of
                       $52,722 were reported in Processing. However, better connecting local education programs at the
                       secondary and post-secondary level will be required in order to provide the necessary workforce for
                       continued success of the region’s Food Chain.
                    •	 The region’s Food Chain consists of a vibrant landscape of local, small businesses. Regional earnings
EXECUTIVE SUMMARY




                                                                                                                                                                                                                                                  EXECUTIVE SUMMARY
                       of small businesses (with no employees) and small farm owners are exceeding the state average.
                       Total annual farm proprietor income (income from sole proprietorships and partnerships, excluding
                       the income received by corporate farms) increased 21 percent in the region between 1999 and 2008
                       but dropped 7 percent statewide. Nonemployers in agriculture earned roughly $3,000 more than
                       nonemployers in California.



                                                                          4                                                                                                              5
THE FOOD CHAIN AS A CLUSTER OF OPPORTUNITY        FOOD CHAIN CLUSTER


                                                                                           The Food Chain in Solano and Yolo Counties is a dynamic system of multi-faceted components and interactive
                                                                                           processes that are driving competition and boosting the region’s competitiveness in the global food market.
                                          The Food Chain with its diverse set of           Central to the region’s Food Chain vital cycle is the role of innovation. The Food Chain encompasses all
                                                                                           activities from agricultural support and production to distribution. The segments of the Food Chain consist of
                                          industries plays an important role in the        1) Agricultural Support Products and Services, 2) Agricultural and Livestock Production, 3) Food Processing and
                                                                                           Packaging, 4) Distribution of Food and Beverages, and 5) New Markets for Waste Byproducts. (This is broader
                                          vitality of the region made up of Solano and     than the Advanced Food & Beverage Manufacturing Cluster presented in the Solano County Index in 2009
                                                                                           which focused on crop production, animal processing, and manufacturing.)
                                          Yolo Counties. Activities associated with        The diagram below illustrates the dynamics of the Food Chain Vital Cycle. The five segments are linked
                                          the Food Chain span agriculture support and      together by the varied processes (represented by the yellow arrows) that begin in the field and result in food
                                                                                           products arriving in the hands of consumers. Central to this cycle is the element of innovation that infuses the

                                          production, food processing, packaging and       cycle at each segment with new products, new processes, new materials, and increased efficiencies. Finally,
                                                                                           the vital role of consumer demand cannot be overlooked in this system: innovation is both the product and the
                                                                                           driver of consumer demand. Consumer demand is driven by the demands for quality, convenience, variety and
                                          distribution as well as waste byproducts.        by the perception of reduced environmental impact.

                                          Innovation is taking place in every segment as                                            FOOD CHAIN VITAL CYCLE
                                          consumer demand changes and technological
                                          advance opens up new opportunities. Food          Grocery and related                             CONSUMER
                                                                                                                                                                                      Agricultural implement
                                                                                                                                                                                      manufacturing
                                                                                            product wholesalers                              DEMAND
                                          Chain activities are highly concentrated in
                                                                                                                                                                                      Food product machinery
                                                                                            Beer, wine and                                                                            manufacturing
                                                                                            distilled alcoholic                                                                       Irrigation systems
                                          the region and represent 10 percent of total      beverage wholesalers
                                                                                            Specialty food stores
                                                                                                                                                                                      construction
                                                                                                                                                                                      Pesticide and fertilizer
                                                                                            Farm supplies
                                          economic output. Statewide, these activities
                                                                                                                         DISTRIBUTION                                 SUPPORT         manufacturing
                                                                                            Merchant wholesalers                                                                      Technical consulting
                                                                                                                                                                                      Veterinary services
                                          account for only 6 percent of total output.
                                          This report highlights the strengths within                                                       INNOVATION


                                          the Food Chain and how innovation in each
FOOD CHAIN AS A CLUSTER OF OPPORTUNITY




                                                                                                                                                                                                                 FOOD CHAIN AS A CLUSTER OF OPPORTUNITY
                                          segment can support the creation of new                                          PACKAGE/
                                                                                                                                                                  PRODUCTION          Crop farming
                                                                                                                          PROCESSING                                                  Vegetable farming
                                          markets for regional products and new job              Diary product
                                                                                                 manufacturing
                                                                                                                                                                                      Animal farming
                                                                                                                                                                                      Poultry and egg
                                          opportunities for its residents.                       Beverage
                                                                                                 manufacturing
                                                                                                                                                                                      production
                                                                                                                                                                                      Animal aquaculture
                                                                                                 Bakeries and tortilla
                                                                                                 manufacturing                                NEW
                                                                                                 Plastic bottle                              MARKETS
                                                                                                 manufacturing                              FOR WASTE        Packaging materials
                                                                                                                                            BYPRODUCTS
                                                                                                                                                             Construction materials
                                                                                                                                                             Biomass/Energy



                                                                  6                                                                               7
ECONOMIC IMPACT
                                         Technological advance taking place in each segment is driving the Food Chain Vital Cycle. Advances are
                                         boosting process and resource efficiencies, improving product quality and safety, and creating new products
                                         and markets. In Agricultural Support Products and Services, advances in biotechnology are improving
                                         efficiencies through the creation of pest and drought resistant seeds and seed coatings that allow for multiple       Generating $25 billion in 2009, the Food Chain represents 10 percent of the total economic output of Solano
                                         plantings. Applied advances in sustainable farming practices are reducing fertilizer and pesticide use in             and Yolo Counties. Exploring new opportunities and further developing industries unique to the region in all
                                         Agricultural and Livestock Production. New uses for waste byproducts are being leveraged, for example, by             segments of the Food Chain will lead to continued economic growth and prosperity in this sector. Tracking
                                         harnessing nutrients from wastewater to produce fuel for production activities. Diagnostic testing and high-          and small business growth, employment growth, and occupational mix help to tell the story about the region’s
                                         speed mechanization are both improving the quality and quantity of food products. In Distribution, electronic         progress and where potential for growth exists.
                                         data interchange is vastly shortening the time lag between production and consumption thereby improving
                                         food quality.                                                                                                         The economic activity related to the food chain generates a sizeable share of the region’s economy. Although
                                                                                                                                                               dropping from its peak of 13.6 percent in 1996, the Food Chain accounted for 10 percent of the combined
                                                                                                                                                               GDP of Solano and Yolo Counties in 2009. In comparison, California’s food chain industries represented less
                                                                     TECHNOLOGICAL INNOVATION DRIVING EACH SEGMENT                                             than 6 percent of the state’s total GDP ($101.6 billion.)


                                                                                                                               SUPPORT
                                                                                                                                                                                                              PERCENTAGE OF TOTAL ECONOMIC OUTPUT
                                                   DISTRIBUTION                                                       Novel seed varieties                                                                                         Generated by the Food Chain
                                                                                                                      Pest-resistant seed varieties                                                                                 Solano and Yolo Counties
                                                                                                                      Coated seeds for regulating
                                                                                                                      multiple planting
                                             Scan-based inventory systems                                                                                                14%
                                                                                                                      Recycling of agricultural waste
                                             Electronic data interchange (EDI)
                                                                                                                      products for construction
                                             Management of point of sale data
                                                                                                                      Monitoring technology for air and                  12%
                                             Category management
                                                                                                                      water quality
                                                                                                                                                                         10%
                                                                                              HAIN VITAL C
                                                                                        O   DC            Y   CL
                                                                                      FO                        E                                                         8%
                                                                                          CONSUMER
                                                                                           DEMAND                                                                         6%
                                                                                            Quality
                                                                                          Convenience
                                                                                                                                                                          4%
                                                                                            Variety
                                                                                           Reduced
                                                                                                                                                                          2%                                                                                                                 Solano & Yolo
                                                                                         environmental                            PRODUCTION
                                                                                            impact
                                                                                                                            Diagnostic testing for detection                                                                                                                                 California
                                                                                                                            of plant/animal disease and feed              0%
                                               PACKAGE/PROCESSING




                                                                                                                                                                                         1991

                                                                                                                                                                                                1992

                                                                                                                                                                                                       1993

                                                                                                                                                                                                              1994

                                                                                                                                                                                                                     1995

                                                                                                                                                                                                                            1996

                                                                                                                                                                                                                                    1997

                                                                                                                                                                                                                                           1998

                                                                                                                                                                                                                                                  1999

                                                                                                                                                                                                                                                         2000
                                                                                                                                                                                                                                                                2001
                                                                                                                                                                                                                                                                       2002
                                                                                                                                                                                                                                                                              2003
                                                                                                                                                                                                                                                                                     2004
                                                                                                                                                                                                                                                                                            2005
                                                                                                                                                                                                                                                                                                   2006
                                                                                                                                                                                                                                                                                                          2007
                                                                                                                                                                                                                                                                                                                 2008
                                                                                                                                                                                                                                                                                                                        2009
                                                                                                                                                                                  1990
                                                                                                                            contaminants
                                              Diagnostic testing for the detection                                          Precision irrigation
                                              of food contaminants                                                          GPS-directed micro-tractors with             The GDP for Agriculture/Production segment is based on a more inclusive definition than the Food Chain Production segment.
                                              High-speed processing                                                         weed triggers and herbicide                  Data Source: Moody’s Economy.com
                                              mechanization                          MARKETS FOR WASTE                      Advances in organic production               Analysis: Collaborative Economics
                                              Nitrogen-filled salad bags                                                    methods
                                                                                       BYPRODUCTS
FOOD CHAIN AS A CLUSTER OF OPPORTUNITY




                                                                                                                                                                                                                                                                                                                               FOOD CHAIN AS A CLUSTER OF OPPORTUNITY
                                              Advanced membrane technology
                                              Biodegradable plastics/packaging
                                                                                      Fiberous organic matter can
                                                                                      be used for:
                                                                                      •	 Packaging materials
                                                                                      •	 Construction materials

                                                                                      Anaerobic digesters generate
                                                                                      electricity from biomass
                                                                                      which can cut energy costs
                                                                                      of operations or be sold back
                                                                                      to the grid.




                                                                                                 8                                                                                                                                                  9
FOOD CHAIN EMPLOYMENT DISTRIBUTION                                                               Guittard Chocolates
                                                                                                                                                                                                                                                                            Solano & Yolo Counties - 2nd Quarter 2009
                                         Generating $872 million in 2009, Distribution accounted for the largest portion of Food Chain output.
                                                                                                                                                                                                                                                                                                                                                                       Established in 1868, Guittard
                                         The region’s GDP in Distribution increased almost three times since 1990, faster than any other segment.                                                                                                              Storage                                                                                                 Chocolates is the oldest family-
                                         In 2009, Support generated $670 million in the region’s economic output, while Processing and                                                                                                                          >1%                                       Services                                Water                owned chocolate company
                                         Agriculture/Production accounted for $500 million and $426 million respectively.                                                                                                                                                                                   27%                                    5%
                                                                                                                                                                                                                                                            Specialty
                                                                                                                                                                                                                                                                                                                                                      Materials
                                                                                                                                                                                                                                                                                                                                                                       in the United States. The
                                                                                                                                                                                                                                                              2%
                                                                                                                                                                                                                                                                                                                                                         2%            company headquarters are
                                                                                                                                                                                                                                                                                                                                                        Machinery      located in Burlingame, and
                                                                                                                                                                                                                                                                                                                                                          1%
                                                                                                                                                                                                                                                                                    Wholesale                                                                          the processing plant is located
                                                                                                                               ECONOMIC OUTPUT OF FOOD CHAIN                                                                                                                         17%                                   Crops
                                                                                                                                        Gross Domestic Product by Segment                                                                                                                                                  21%                                         in Fairfield. The majority of
                                                                                                                                                    Solano and Yolo Counties                                                                                                                                                                                           inputs for the chocolate factory
                                                                                                                                                                                                                                                                                                                                                                       come from local sources.
                                                                                             $30                                                                                                                                                                                                           Food                                                        Sugar, powdered milk and
                                                                                                            Agricultural/Production                                                                                                               Beverage & Packaging                                     15%
                                                                                                                                                                                                                                                                                                                                                                       whey are all purchased from
                                                  Billions of Dollars (inflation adjusted)




                                                                                                            Processing                                                                                                                                     2%
                                                                                             $25
                                                                                                            Support
                                                                                                                                                                                                                                                                                                                               Livestock                               Bay Area suppliers. Similarly,
                                                                                                            Distribution
                                                                                                                                                                                                                                                                                                                                  2%                                   machinery used at the factory
                                                                                                                                                                                                                                                                                                                                                                       comes primarily from local
                                                                                             $20                                                                                                                                                                               SUPPORT                DISTRIBUTION         PROCESSING      AGRICULTURE
                                                                                                                                                                                                                                                                                                                                                                       makers. Guittard Chocolates
                                                                                                                                                                                                                                                    Data Source: CA Employment Development Department, Labor Market Information Division (QCEW)
                                                                                                                                                                                                                                                    Analysis: Collaborative Economics                                                                                  caters its production to the
                                                                                             $15                                                                                                                                                                                                                                                                       growing needs of customers
                                                                                                                                                                                                                                                 The segment of the Food Chain with the largest portion of jobs                                                        who are also local chocolate
                                                                                                                                                                                                                                                 is Support (35%), followed by Production(23%), Processing                                                             producers. The market for their
                                                                                             $10
                                                                                                                                                                                                                                                 (23%), and Distribution (19%). Each of the four segments                                                              chocolate exceeds their current
                                                                                                                                                                                                                                                 consists of multiple subsegments. Within the Support segment,                                                         production capacity. In the
                                                                                             $5                                                                                                                                                  Service jobs dominate making up 27 percent of total Food                                                              future, the company plans to
                                                                                                                                                                                                                                                 Chain employment. Production in Crops accounts for 21                                                                 relocate its headquarters from
                                                                                                                                                                                                                                                 percent. Food in processing represents 15 percent. Wholesale                                                          Burlingame to Fairfield and to
                                                                                              0
                                                                                                                                                                                                                                                 in Distribution represents 17 percent of the regions total Food                                                       increase its workforce from the
                                                                                                                                                                                                                                                                                                                                                                       13 employees currently with
                                                                                                   1990

                                                                                                          1991



                                                                                                                        1993

                                                                                                                               1994

                                                                                                                                      1995

                                                                                                                                             1996

                                                                                                                                                      1997

                                                                                                                                                             1998

                                                                                                                                                                    1999

                                                                                                                                                                           2000

                                                                                                                                                                                  2001

                                                                                                                                                                                         2002

                                                                                                                                                                                                2003

                                                                                                                                                                                                       2004

                                                                                                                                                                                                              2005

                                                                                                                                                                                                                     2006
                                                                                                                                                                                                                            2007

                                                                                                                                                                                                                                   2008

                                                                                                                                                                                                                                          2009
                                                                                                                 1992




                                                                                                                                                                                                                                                 Chain employment.
                                                                                                                                                                                                                                                                                                                                                                       the company to more than
                                                                            The GDP for Agriculture/Production segment is based on a more inclusive definition than the Food Chain Production segment.
                                                                            Data Source: Moody’s Economy.com
                                                                                                                                                                                                                                                                                                                                                                       100. This expansion will help
                                                                            Analysis: Collaborative Economics
                                                                                                                                                                                                                                                               FOOD CHAIN EMPLOYMENT TRENDS BY SEGMENT                                                                 Guittard meet the growing local
                                                                                                                                                                                                                                                                                             Solano & Yolo Counties
                                                                                                                                                                                                                                                                                                2nd Quarter 2009                                                       demand for their products, as
                                                                                                                                                                                                                                                                                                                                                                       well as meet national growth
                                                                                                                                                                                                                                                                                                                                                                       in the demand for premium
                                         Employment is for the most part evenly distributed across the segments of the Food Chain and growing                                                                                                     6,000                                                                                       Agriculture/Production
                                                                                                                                                                                                                                                                                                                                              Processing               chocolate.
                                         fastest in agriculture support activities. Total Food Chain employment increased by 11 percent between                                                                                                                                                                                               Support
                                                                                                                                                                                                                                                  5,000
                                         2001 and 2009, while Processing had the largest percentage increase (43%) during that period. At the                                                                                                                                                                                                 Distribution

                                         same time, the two segments, Production and Distribution, declined in employment, by 10 percent and
FOOD CHAIN AS A CLUSTER OF OPPORTUNITY




                                                                                                                                                                                                                                                                                                                                                                                                          FOOD CHAIN AS A CLUSTER OF OPPORTUNITY
                                                                                                                                                                                                                                                  4,000
                                         2 percent respectively. In the second quarter of 2009, the subsegment Services, which is under Support,
                                         accounted for the largest percentage of employment in the Food Chain (27%).                                                                                                                              3,000


                                                                                                                                                                                                                                                  2,000


                                                                                                                                                                                                                                                  1,000

                                                                                                                                                                                                                                                        0
                                                                                                                                                                                                                                                            2001 2005 2009 2001 2005 2009 2001 2005 2009 2001 2005 2009


                                                                                                                                                                                                                                                 Data Source: CA Employment Development Department, Labor Marketing Information Division (QCEW)
                                                                                                                                                                                                                                                 Analysis: Collaborative Economics




                                                                                                                                                      10                                                                                                                                                                                             11
EARNINGS GROWTH IN FOOD CHAIN                                                                                             EXAMPLES OF OCCUPATIONS IN SOLANO’S FOOD CHAIN
                                                                                                                                                                 Annual Average Earnings by Segment
                                         Food Chain earnings increased by                                                                                             Solano & Yolo Counties                                                                                                                                          2009 Annual
                                                                                                                                                                                                                                                       Segment                               Occupation Title                                                    Education & Training
                                         12 percent between 2001 and 2008;                                                                                                                                                                                                                                                            Median Wage
                                                                                                                               $60,000
                                         however, earnings growth varied by                                                                                                                                                                                             Farmworkers & Laborers, Crop, Nursery, & Greenhouse             $19,010     Short-Term On-the-Job Training
                                         segment. Annual average earnings




                                                                                    Annual Average Wage (inflation adjusted)
                                                                                                                               $50,000                                                                                                                                  Shipping, Receiving, & Traffic Clerks                           $28,930     Short-Term On-the-Job Training
                                         growth was strongest in Support with                                                                                                                                                                                           Truck Drivers, Heavy & Tractor-Trailer                          $40,020     Moderate-Term On-the-Job Training
                                         wages rising 23 percent over the




                                                                                                                                                                                                                                                         Distribution
                                                                                                                               $40,000                                                                                                                                  Computer Operators                                              $45,550     Moderate-Term On-the-Job Training
                                         period. Earnings grew 13 percent in
                                                                                                                                                                                                                                                                        Transportation, Storage, & Distribution Managers                $92,630     Work Experience
                                         Production, 11 percent in Processing,
                                         and 7 percent in Distribution.                                                        $30,000                                                                                                                                  Bus & Truck Mechanics & Diesel Engine Specialists               $53,000     Post-Secondary Vocational Education
                                                                                                                                                                                                                                                                        Computer Support Specialists                                    $55,140     Associate Degree
                                                                                                                                                                                                                                   Processing
                                         In 2008, Processing reported the                                                      $20,000
                                                                                                                                                                                                                                                                        Network Systems & Data Communications Analysts                  $65,010     Bachelor's Degree
                                                                                                                                                                                                                                   Distribution
                                         highest average earnings at $52,722.                                                                                                                                                                                           Logisticians                                                    $74,620     Bachelor's Degree
                                         Following closely, earnings in                                                        $10,000                                                                                             Support
                                                                                                                                                                                                                                                                        Market Research Analysts                                        $63,870     Master's Degree
                                         Distribution averaged $46,762, Support                                                                                                                                                    Production
                                                                                                                                     0                                                                                                                                  Food Batchmakers                                                $30,770     Short-Term On-the-Job Training
                                         and Production followed with average
                                                                                                                                         2001          2002           2003           2004          2005           2006           2007           2008
                                         earnings in 2008 of $39,189 and                                                                                                                                                                                                Food Cooking Machine Operators & Tenders                        $39,470     Short-Term On-the-Job Training
                                         $34,792, respectively.                                                                          Data Source: CA Employment Development Department, Labor Market Information Division (QCEW)
                                                                                                                                         Analysis: Collaborative Economics                                                                                              Team Assemblers                                                 $23,940     Moderate-Term On-the-Job Training




                                                                                                                                                                                                                                                         Processing
                                                                                                                                                                                                                                                                        Mixing & Blending Machine Setters, Operators, & Tenders         $31,850     Moderate-Term On-the-Job Training
                                         A wide range of job opportunity exists in the Food Chain. Occupations associated with these areas of                                                                                                                           Bakers                                                          $27,460     Long-Term On-the-Job Training
                                         business activity represent an array of fields, levels of training, and earnings potential. In every segment
                                                                                                                                                                                                                                                                        Butchers & Meat Cutters                                         $38,810     Long-Term On-the-Job Training
                                         training requirements vary from on-the-job training to graduate degrees. For example, in Distribution jobs
                                                                                                                                                                                                                                                                        Chefs & Head Cooks                                              $37,910     Post-Secondary Vocational Education
                                         range from the machinists to logisticians. In addition, with all of the changes in agriculture technology
                                         there is a need for horticulturalists and chemical engineers.                                                                                                                                                                  Chemical Technicians                                            $45,250     Associate Degree
                                                                                                                                                                                                                                                                        Industrial Production Managers                                  $97,890     Bachelor's Degree
                                         Although Solano County offers a variety of training opportunities related to the Food Chain, there are                                                                                                                         Marketing Managers                                              $96,710     Work Experience, Plus a Bachelor's or Higher
                                         fewer than in the past. Solano County offers opportunities for residents of all ages to learn about farms                                                                                                                      Weighers, Measurers, Checkers, & Samplers,                      $22,160     Short-Term On-the-Job Training
                                         and agriculture. There are farm programs for schoolchildren as well as adult educational opportunities at                                                                                                                      Recordkeeping
                                         community colleges and the University of California at Davis. These include the following:                                                                                                                                     Laborers & Freight, Stock, & Material Movers, Hand              $24,500     Short-Term On-the-Job Training
                                                                                                                                                                                                                                                                        Industrial Truck & Tractor Operators                            $30,050     Short-Term On-the-Job Training
                                         •	 Schoolchildren have the opportunity to learn academic skills in a farm-based setting at Loma Vista
                                                                                                                                                                                                                                                                        Separating, Filtering, Machine Setters, Operators, &            $46,250     Moderate-Term On-the-Job Training




                                                                                                                                                                                                                                                         Production
                                            Farm. Since 1974, Loma Vista farm has taught children about plants and animals through hands-on                                                                                                                             Tenders
                                            activities in an outdoor classroom. Another program for schoolchildren is the Centers for Land Based
                                                                                                                                                                                                                                                                        Maintenance & Repair Workers, General                           $43,280     Long-Term On-the-Job Training
                                            Farming located on the Farm on Putah Creek. On 40 acres of land, the Farm on Putah Creek allows
                                                                                                                                                                                                                                                                        Industrial Machinery Mechanics                                  $61,070     Long-Term On-the-Job Training
                                            visitors to participate in educational field trips and observe demonstration projects, and allows high
                                            school students to participate in the Student and Landowner Education and Watershed Stewardship                                                                                                                             First-Line Supervisors/Managers of Production & Operating       $63,190     Work Experience
                                                                                                                                                                                                                                                                        Workers
                                            (SLEWS) program.
                                                                                                                                                                                                                                                                        Farm Equipment Mechanics                                        $45,790     Post-Secondary Vocational Education

                                         •	 High school students attending Dixon High have the opportunity to develop agricultural interests
FOOD CHAIN AS A CLUSTER OF OPPORTUNITY




                                                                                                                                                                                                                                                                                                                                                                                                   FOOD CHAIN AS A CLUSTER OF OPPORTUNITY
                                                                                                                                                                                                                                                                        Sales Managers                                                  $65,670     Work Experience, Plus a Bachelor's or Higher
                                            through coursework and participation in agriculture programs. Supervised Agriculture Experience                                                                                                                             General & Operations Managers                                   $95,690     Work Experience, Plus a Bachelor's or Higher
                                            Programs (SAEP) currently involves approximately 100 students in local agriculture projects ranging                                                                                                                         Packers & Packagers, Hand                                       $19,210     Short-Term On-the-Job Training
                                            from assisting local farmers to internships at U.C. Davis. Students gain practical experience in a variety                                                                                                                  Inspectors, Testers, Sorters, Samplers, & Weighers              $43,020     Moderate-Term On-the-Job Training
                                            of agricultural fields and some of these internships and partnerships lead to employment opportunities.
                                                                                                                                                                                                                                                                        Machinists                                                      $50,370     Long-Term On-the-Job Training
                                            Comprehensive courses in Agricultural Earth Science and Agricultural Biology spark interest in
                                            agricultural fields. These classes provide guest speakers from U.C. Davis and Chico State University                                                                                                                        First-Line Sup/Mgrs of Helpers, Laborers, & Material            $46,470     Work Experience
                                                                                                                                                                                                                                                                        Movers, Hand
                                            and a Dixon High farm for enhanced agricultural education is planned for the future.



                                                                                                                                                                                                                                                         Support
                                                                                                                                                                                                                                                                        Electrical & Electronics Repairers, Commercial & Industrial     $74,160     Post-Secondary Vocational Education
                                                                                                                                                                                                                                                                        Equipment
                                         •	 Solano Community College provides agriculture classes through the Horticulture program, since the
                                                                                                                                                                                                                                                                        Veterinary Technologists & Technicians                          $31,250     Associate Degree
                                            school no longer offers Agricultural Business Classes. U.C. Davis offers many degrees and programs
                                                                                                                                                                                                                                                                        Mechanical Engineers                                            $82,600     Bachelor's Degree
                                            through the College of Agricultural and Environmental Sciences.
                                                                                                                                                                                                                                                                        Construction Managers                                           $94,320     Bachelor's Degree
                                                                                                                                                                                                                                                                        Purchasing Managers                                            $100,930     Work Experience, Plus a Bachelor's or Higher
                                                                                                                                                                                                                                                                        Operations Research Analysts                                    $95,040     Master's Degree

                                                                                                                                     12                                                                                                                                                                                        13
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study
Solano Food Chain Cluster Study

Contenu connexe

Similaire à Solano Food Chain Cluster Study

Stockwell_B_Peri-Urban food futures
Stockwell_B_Peri-Urban food futuresStockwell_B_Peri-Urban food futures
Stockwell_B_Peri-Urban food futureslatrobeuni
 
Applying the Principles of Sustainable Farming
Applying the Principles of Sustainable FarmingApplying the Principles of Sustainable Farming
Applying the Principles of Sustainable FarmingElisaMendelsohn
 
Bay Area Food economy white paper final
Bay Area Food economy white paper finalBay Area Food economy white paper final
Bay Area Food economy white paper finalOscarOrtiz174
 
Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...
Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...
Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...Bangladesh Food Security Investment Forum
 
Evolution of farming systems
Evolution of farming systemsEvolution of farming systems
Evolution of farming systemsYMCA Mandalay
 
Evolution of farming systems
Evolution of farming systemsEvolution of farming systems
Evolution of farming systemsYMCA Mandalay
 
THE WELL BEING BANK (WBB) PROJECT
THE WELL BEING BANK (WBB) PROJECTTHE WELL BEING BANK (WBB) PROJECT
THE WELL BEING BANK (WBB) PROJECTEstelleNadiaNTI
 
Empowering Agriculture Energy Options for Horticulture
Empowering Agriculture Energy Options for Horticulture  Empowering Agriculture Energy Options for Horticulture
Empowering Agriculture Energy Options for Horticulture ZY8
 
Sustainable Corn and Soybean Production
Sustainable Corn and Soybean ProductionSustainable Corn and Soybean Production
Sustainable Corn and Soybean ProductionGardening
 
The 2050 Critera Report
The 2050 Critera ReportThe 2050 Critera Report
The 2050 Critera ReportLeland Lehrman
 
Atlas on prev 2013_african_ag_ihp
Atlas on prev 2013_african_ag_ihpAtlas on prev 2013_african_ag_ihp
Atlas on prev 2013_african_ag_ihpissacbar
 
Sustainable Agriculture: An Introduction
Sustainable Agriculture: An IntroductionSustainable Agriculture: An Introduction
Sustainable Agriculture: An IntroductionElisaMendelsohn
 
Disaster Programs and the Changing Face of Agriculture in North Carolina
Disaster Programs and the Changing Face of Agriculture in North CarolinaDisaster Programs and the Changing Face of Agriculture in North Carolina
Disaster Programs and the Changing Face of Agriculture in North CarolinaRAFI-USA
 

Similaire à Solano Food Chain Cluster Study (20)

Stockwell_B_Peri-Urban food futures
Stockwell_B_Peri-Urban food futuresStockwell_B_Peri-Urban food futures
Stockwell_B_Peri-Urban food futures
 
Applying the Principles of Sustainable Farming
Applying the Principles of Sustainable FarmingApplying the Principles of Sustainable Farming
Applying the Principles of Sustainable Farming
 
Bay Area Food economy white paper final
Bay Area Food economy white paper finalBay Area Food economy white paper final
Bay Area Food economy white paper final
 
SUSTAINABLE FISHERIES AND RESPONSIBLE AQUACULTURE
SUSTAINABLE FISHERIES AND RESPONSIBLE AQUACULTURESUSTAINABLE FISHERIES AND RESPONSIBLE AQUACULTURE
SUSTAINABLE FISHERIES AND RESPONSIBLE AQUACULTURE
 
Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...
Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...
Investing in Crop Agriculture in Bangladesh for Higher Growth and Productivit...
 
Evolution of farming systems
Evolution of farming systemsEvolution of farming systems
Evolution of farming systems
 
Evolution of farming systems
Evolution of farming systemsEvolution of farming systems
Evolution of farming systems
 
Agricultural Technology for Development
Agricultural Technology for DevelopmentAgricultural Technology for Development
Agricultural Technology for Development
 
Agricultural Technology for Development - Report of the Secretary-General
Agricultural Technology for Development - Report of the Secretary-GeneralAgricultural Technology for Development - Report of the Secretary-General
Agricultural Technology for Development - Report of the Secretary-General
 
THE WELL BEING BANK (WBB) PROJECT
THE WELL BEING BANK (WBB) PROJECTTHE WELL BEING BANK (WBB) PROJECT
THE WELL BEING BANK (WBB) PROJECT
 
Empowering Agriculture Energy Options for Horticulture
Empowering Agriculture Energy Options for Horticulture  Empowering Agriculture Energy Options for Horticulture
Empowering Agriculture Energy Options for Horticulture
 
Sustainable Corn and Soybean Production
Sustainable Corn and Soybean ProductionSustainable Corn and Soybean Production
Sustainable Corn and Soybean Production
 
Wwf the 2050-critera_report
Wwf the 2050-critera_reportWwf the 2050-critera_report
Wwf the 2050-critera_report
 
The 2050 Critera Report
The 2050 Critera ReportThe 2050 Critera Report
The 2050 Critera Report
 
Atlas on prev 2013_african_ag_ihp
Atlas on prev 2013_african_ag_ihpAtlas on prev 2013_african_ag_ihp
Atlas on prev 2013_african_ag_ihp
 
Sustainable Agriculture: An Introduction
Sustainable Agriculture: An IntroductionSustainable Agriculture: An Introduction
Sustainable Agriculture: An Introduction
 
Disaster Programs and the Changing Face of Agriculture in North Carolina
Disaster Programs and the Changing Face of Agriculture in North CarolinaDisaster Programs and the Changing Face of Agriculture in North Carolina
Disaster Programs and the Changing Face of Agriculture in North Carolina
 
Agribusiness
AgribusinessAgribusiness
Agribusiness
 
Agriculture Research and Poverty Reduction: Pathways and Drivers in West and ...
Agriculture Research and Poverty Reduction: Pathways and Drivers in West and ...Agriculture Research and Poverty Reduction: Pathways and Drivers in West and ...
Agriculture Research and Poverty Reduction: Pathways and Drivers in West and ...
 
Marg_report
Marg_reportMarg_report
Marg_report
 

Plus de ammann

Solano County RDA Presentation
Solano County RDA PresentationSolano County RDA Presentation
Solano County RDA Presentationammann
 
Solano Life Science Cluster Study
Solano Life Science Cluster StudySolano Life Science Cluster Study
Solano Life Science Cluster Studyammann
 
From Summits To Indexes And Beyond (2)
From Summits To Indexes And Beyond (2)From Summits To Indexes And Beyond (2)
From Summits To Indexes And Beyond (2)ammann
 
Kotkin Presentation La Future
Kotkin Presentation La FutureKotkin Presentation La Future
Kotkin Presentation La Futureammann
 
Solano's Energy Opportunity
Solano's Energy OpportunitySolano's Energy Opportunity
Solano's Energy Opportunityammann
 
Leadership Vallejo Presentation Solano Index.08
Leadership Vallejo Presentation Solano Index.08Leadership Vallejo Presentation Solano Index.08
Leadership Vallejo Presentation Solano Index.08ammann
 
Creative Financing Incentives
Creative Financing IncentivesCreative Financing Incentives
Creative Financing Incentivesammann
 
Index Life Science Update 5.14.09
Index  Life Science Update 5.14.09Index  Life Science Update 5.14.09
Index Life Science Update 5.14.09ammann
 
Solano Life Sciences May 13, 09 Major Employers Group
Solano Life Sciences May 13, 09 Major Employers GroupSolano Life Sciences May 13, 09 Major Employers Group
Solano Life Sciences May 13, 09 Major Employers Groupammann
 
Solano Index Presentation @ Solano Economic Summit 4
Solano Index Presentation @ Solano Economic Summit 4Solano Index Presentation @ Solano Economic Summit 4
Solano Index Presentation @ Solano Economic Summit 4ammann
 

Plus de ammann (10)

Solano County RDA Presentation
Solano County RDA PresentationSolano County RDA Presentation
Solano County RDA Presentation
 
Solano Life Science Cluster Study
Solano Life Science Cluster StudySolano Life Science Cluster Study
Solano Life Science Cluster Study
 
From Summits To Indexes And Beyond (2)
From Summits To Indexes And Beyond (2)From Summits To Indexes And Beyond (2)
From Summits To Indexes And Beyond (2)
 
Kotkin Presentation La Future
Kotkin Presentation La FutureKotkin Presentation La Future
Kotkin Presentation La Future
 
Solano's Energy Opportunity
Solano's Energy OpportunitySolano's Energy Opportunity
Solano's Energy Opportunity
 
Leadership Vallejo Presentation Solano Index.08
Leadership Vallejo Presentation Solano Index.08Leadership Vallejo Presentation Solano Index.08
Leadership Vallejo Presentation Solano Index.08
 
Creative Financing Incentives
Creative Financing IncentivesCreative Financing Incentives
Creative Financing Incentives
 
Index Life Science Update 5.14.09
Index  Life Science Update 5.14.09Index  Life Science Update 5.14.09
Index Life Science Update 5.14.09
 
Solano Life Sciences May 13, 09 Major Employers Group
Solano Life Sciences May 13, 09 Major Employers GroupSolano Life Sciences May 13, 09 Major Employers Group
Solano Life Sciences May 13, 09 Major Employers Group
 
Solano Index Presentation @ Solano Economic Summit 4
Solano Index Presentation @ Solano Economic Summit 4Solano Index Presentation @ Solano Economic Summit 4
Solano Index Presentation @ Solano Economic Summit 4
 

Solano Food Chain Cluster Study

  • 1. SOLANO COUNTY’S FOOD CHAIN ASSETS AND OPPORTUNITY IN FOOD PRODUCTION AND PROCESSING Solano EDC Prepared by Collaborative Economics AUGUST 2010 DRAFT
  • 2. Solano EDC CONTENTS The Mission of the Solano EDC is to attract, grow and retain business and industry EXECUTIVE SUMMARY...................................................................................................3 in Solano County that enhance the economic vitality and quality of life in our communities. We serve as the facilitator of countywide and regional discussions THE FOOD CHAIN AS A CLUSTER OF OPPORTUNITY.................................................6 on how to improve the way we work together and take action on critical employer, FOOD CHAIN CLUSTER............................................................................................7 transportation, and education issues. ECONOMIC IMPACT.................................................................................................9 ASSETS AND INNOVATION IN SOLANO COUNTY....................................................15 REGIONAL ASSETS..................................................................................................15 INNOVATION IS KEY TO THE SUCCESS OF THE REGION’S FOOD CHAIN..........18 OPPORTUNITIES FOR THE FUTURE............................................................................22 Appendix A...................................................................................................................24 Appendix B...................................................................................................................26 Endnotes.......................................................................................................................27 Prepared by COLLABORATIVE ECONOMICS Doug Henton John Melville Tracey Grose Tiffany Furrell Amy Kishimura Bridget Gibbons Collaborative Economics is a nationally-recognized consulting firm specializing in developing regional indexes, working with private and public sector leaders to develop innovative solutions to pressing economic and community challenges, and advising civic entrepreneurs across the country and globally.
  • 3. EXECUTIVE SUMMARY The region benefits from many natural assets that support the production of high- value crops, and the region’s advantageous location between metro areas supports The Food Chain, with its diverse set of industries, plays an important the process and distribution of foods and beverages. role in the vitality of the Solano and Yolo County region. Activities • The region’s natural assets include prime agricultural land, stable water resources, and strong winds. associated with the Food Chain span agriculture support and production, The region also benefits from its convenient access to surrounding metropolitan areas major national highway systems. food processing, packaging and distribution as well as waste byproducts. • Increasing values of agricultural land discourages the expansion of lower valued crops in the region. Innovation is taking place in every segment as consumer demand The net loss of Agricultural Land has decreased 76 percent since the 2002 to 2004 period. changes and technological advance opens up new opportunities. Food • Two of Solano County’s top crops, almonds and walnuts, are currently experiencing rising demand Chain activities are highly concentrated in the region and represent 10 locally, nationally, and internationally. percent of total economic output. Statewide, these activities account for Innovation across the region’s Food Chain is improving process and resource only 6 percent of total output. This report highlights the strengths within efficiencies as well as food quality. the Food Chain and how innovation in each segment can support the • Organic farming in Solano and Yolo Counties represents 10 percent of total crop sales in the region, but creation of new markets for regional products and new job opportunities in California as a whole, organics account for only 6 percent. for its residents. • The influence of agriculture biotechnology is most prevalent in seed biotechnology research and production, and 7 of the 10 top seed producers in the world are located in the region. The University of California at Davis Seed Biotechnology Center also provides valuable research opportunities and The Food Chain in Solano and Yolo Counties is a dynamic system of multi-faceted graduates to fill new jobs in the field. components and interactive processes that are driving competition and boosting the • Farms and businesses in the region are adopting renewable energy systems including wind, solar, and region’s competitiveness in the global food market. Central to the region’s Food biomass. Chain vital cycle is the role of innovation. The segments of the Food Chain consist of 1) Agricultural Support Products and Services, 2) Agricultural and Livestock The region is fertile with opportunities for growth across the Food Chain Production, 3) Food Processing and Packaging, 4) Distribution of Food and • Farmer’s markets and other forms of Community Supported Agriculture (CSA) present an opportunity Beverages, and 5) New Markets for Waste Byproducts. for the counties to make the most of local agricultural production, specifically organic products. The growing demand for local and sustainable products aligns favorably with the resources in the region. The Food Chain contributes significantly to the economic vitality of the region in • The addition of livestock processing facilities and other intermediate processing facilities will help terms of economic output, employment, and business growth. maintain the diversity of activities in all segments of the Food Chain in the region. This will create new markets, jobs, and output value in the local Food Chain. • Generating $25 billion in 2009, Food Chain activities represent 10 percent of total regional output. Distribution accounted for nearly one third of Food Chain output and has tripled in value since 1990. • Growing global demand for high-value products such as almonds will create more consistency of demand as products are sent to multiple and diverse markets across the world. • Agricultural Support is larger in employment than any of the other segments in the region, and it is the only segment reporting growth in each of the past 3 years. Employment in this segment is primarily in Services and represents 27 percent of total Food Chain employment in the region. • There is a diverse range of occupations and earnings potential within the Food Chain. Between 2001 and 2008, Food Chain earnings increased by 12 percent, and the highest average annual earnings of $52,722 were reported in Processing. However, better connecting local education programs at the secondary and post-secondary level will be required in order to provide the necessary workforce for continued success of the region’s Food Chain. • The region’s Food Chain consists of a vibrant landscape of local, small businesses. Regional earnings EXECUTIVE SUMMARY EXECUTIVE SUMMARY of small businesses (with no employees) and small farm owners are exceeding the state average. Total annual farm proprietor income (income from sole proprietorships and partnerships, excluding the income received by corporate farms) increased 21 percent in the region between 1999 and 2008 but dropped 7 percent statewide. Nonemployers in agriculture earned roughly $3,000 more than nonemployers in California. 4 5
  • 4. THE FOOD CHAIN AS A CLUSTER OF OPPORTUNITY FOOD CHAIN CLUSTER The Food Chain in Solano and Yolo Counties is a dynamic system of multi-faceted components and interactive processes that are driving competition and boosting the region’s competitiveness in the global food market. The Food Chain with its diverse set of Central to the region’s Food Chain vital cycle is the role of innovation. The Food Chain encompasses all activities from agricultural support and production to distribution. The segments of the Food Chain consist of industries plays an important role in the 1) Agricultural Support Products and Services, 2) Agricultural and Livestock Production, 3) Food Processing and Packaging, 4) Distribution of Food and Beverages, and 5) New Markets for Waste Byproducts. (This is broader vitality of the region made up of Solano and than the Advanced Food & Beverage Manufacturing Cluster presented in the Solano County Index in 2009 which focused on crop production, animal processing, and manufacturing.) Yolo Counties. Activities associated with The diagram below illustrates the dynamics of the Food Chain Vital Cycle. The five segments are linked the Food Chain span agriculture support and together by the varied processes (represented by the yellow arrows) that begin in the field and result in food products arriving in the hands of consumers. Central to this cycle is the element of innovation that infuses the production, food processing, packaging and cycle at each segment with new products, new processes, new materials, and increased efficiencies. Finally, the vital role of consumer demand cannot be overlooked in this system: innovation is both the product and the driver of consumer demand. Consumer demand is driven by the demands for quality, convenience, variety and distribution as well as waste byproducts. by the perception of reduced environmental impact. Innovation is taking place in every segment as FOOD CHAIN VITAL CYCLE consumer demand changes and technological advance opens up new opportunities. Food Grocery and related CONSUMER Agricultural implement manufacturing product wholesalers DEMAND Chain activities are highly concentrated in Food product machinery Beer, wine and manufacturing distilled alcoholic Irrigation systems the region and represent 10 percent of total beverage wholesalers Specialty food stores construction Pesticide and fertilizer Farm supplies economic output. Statewide, these activities DISTRIBUTION SUPPORT manufacturing Merchant wholesalers Technical consulting Veterinary services account for only 6 percent of total output. This report highlights the strengths within INNOVATION the Food Chain and how innovation in each FOOD CHAIN AS A CLUSTER OF OPPORTUNITY FOOD CHAIN AS A CLUSTER OF OPPORTUNITY segment can support the creation of new PACKAGE/ PRODUCTION Crop farming PROCESSING Vegetable farming markets for regional products and new job Diary product manufacturing Animal farming Poultry and egg opportunities for its residents. Beverage manufacturing production Animal aquaculture Bakeries and tortilla manufacturing NEW Plastic bottle MARKETS manufacturing FOR WASTE Packaging materials BYPRODUCTS Construction materials Biomass/Energy 6 7
  • 5. ECONOMIC IMPACT Technological advance taking place in each segment is driving the Food Chain Vital Cycle. Advances are boosting process and resource efficiencies, improving product quality and safety, and creating new products and markets. In Agricultural Support Products and Services, advances in biotechnology are improving efficiencies through the creation of pest and drought resistant seeds and seed coatings that allow for multiple Generating $25 billion in 2009, the Food Chain represents 10 percent of the total economic output of Solano plantings. Applied advances in sustainable farming practices are reducing fertilizer and pesticide use in and Yolo Counties. Exploring new opportunities and further developing industries unique to the region in all Agricultural and Livestock Production. New uses for waste byproducts are being leveraged, for example, by segments of the Food Chain will lead to continued economic growth and prosperity in this sector. Tracking harnessing nutrients from wastewater to produce fuel for production activities. Diagnostic testing and high- and small business growth, employment growth, and occupational mix help to tell the story about the region’s speed mechanization are both improving the quality and quantity of food products. In Distribution, electronic progress and where potential for growth exists. data interchange is vastly shortening the time lag between production and consumption thereby improving food quality. The economic activity related to the food chain generates a sizeable share of the region’s economy. Although dropping from its peak of 13.6 percent in 1996, the Food Chain accounted for 10 percent of the combined GDP of Solano and Yolo Counties in 2009. In comparison, California’s food chain industries represented less TECHNOLOGICAL INNOVATION DRIVING EACH SEGMENT than 6 percent of the state’s total GDP ($101.6 billion.) SUPPORT PERCENTAGE OF TOTAL ECONOMIC OUTPUT DISTRIBUTION Novel seed varieties Generated by the Food Chain Pest-resistant seed varieties Solano and Yolo Counties Coated seeds for regulating multiple planting Scan-based inventory systems 14% Recycling of agricultural waste Electronic data interchange (EDI) products for construction Management of point of sale data Monitoring technology for air and 12% Category management water quality 10% HAIN VITAL C O DC Y CL FO E 8% CONSUMER DEMAND 6% Quality Convenience 4% Variety Reduced 2% Solano & Yolo environmental PRODUCTION impact Diagnostic testing for detection California of plant/animal disease and feed 0% PACKAGE/PROCESSING 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1990 contaminants Diagnostic testing for the detection Precision irrigation of food contaminants GPS-directed micro-tractors with The GDP for Agriculture/Production segment is based on a more inclusive definition than the Food Chain Production segment. High-speed processing weed triggers and herbicide Data Source: Moody’s Economy.com mechanization MARKETS FOR WASTE Advances in organic production Analysis: Collaborative Economics Nitrogen-filled salad bags methods BYPRODUCTS FOOD CHAIN AS A CLUSTER OF OPPORTUNITY FOOD CHAIN AS A CLUSTER OF OPPORTUNITY Advanced membrane technology Biodegradable plastics/packaging Fiberous organic matter can be used for: • Packaging materials • Construction materials Anaerobic digesters generate electricity from biomass which can cut energy costs of operations or be sold back to the grid. 8 9
  • 6. FOOD CHAIN EMPLOYMENT DISTRIBUTION Guittard Chocolates Solano & Yolo Counties - 2nd Quarter 2009 Generating $872 million in 2009, Distribution accounted for the largest portion of Food Chain output. Established in 1868, Guittard The region’s GDP in Distribution increased almost three times since 1990, faster than any other segment. Storage Chocolates is the oldest family- In 2009, Support generated $670 million in the region’s economic output, while Processing and >1% Services Water owned chocolate company Agriculture/Production accounted for $500 million and $426 million respectively. 27% 5% Specialty Materials in the United States. The 2% 2% company headquarters are Machinery located in Burlingame, and 1% Wholesale the processing plant is located ECONOMIC OUTPUT OF FOOD CHAIN 17% Crops Gross Domestic Product by Segment 21% in Fairfield. The majority of Solano and Yolo Counties inputs for the chocolate factory come from local sources. $30 Food Sugar, powdered milk and Agricultural/Production Beverage & Packaging 15% whey are all purchased from Billions of Dollars (inflation adjusted) Processing 2% $25 Support Livestock Bay Area suppliers. Similarly, Distribution 2% machinery used at the factory comes primarily from local $20 SUPPORT DISTRIBUTION PROCESSING AGRICULTURE makers. Guittard Chocolates Data Source: CA Employment Development Department, Labor Market Information Division (QCEW) Analysis: Collaborative Economics caters its production to the $15 growing needs of customers The segment of the Food Chain with the largest portion of jobs who are also local chocolate is Support (35%), followed by Production(23%), Processing producers. The market for their $10 (23%), and Distribution (19%). Each of the four segments chocolate exceeds their current consists of multiple subsegments. Within the Support segment, production capacity. In the $5 Service jobs dominate making up 27 percent of total Food future, the company plans to Chain employment. Production in Crops accounts for 21 relocate its headquarters from percent. Food in processing represents 15 percent. Wholesale Burlingame to Fairfield and to 0 in Distribution represents 17 percent of the regions total Food increase its workforce from the 13 employees currently with 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1992 Chain employment. the company to more than The GDP for Agriculture/Production segment is based on a more inclusive definition than the Food Chain Production segment. Data Source: Moody’s Economy.com 100. This expansion will help Analysis: Collaborative Economics FOOD CHAIN EMPLOYMENT TRENDS BY SEGMENT Guittard meet the growing local Solano & Yolo Counties 2nd Quarter 2009 demand for their products, as well as meet national growth in the demand for premium Employment is for the most part evenly distributed across the segments of the Food Chain and growing 6,000 Agriculture/Production Processing chocolate. fastest in agriculture support activities. Total Food Chain employment increased by 11 percent between Support 5,000 2001 and 2009, while Processing had the largest percentage increase (43%) during that period. At the Distribution same time, the two segments, Production and Distribution, declined in employment, by 10 percent and FOOD CHAIN AS A CLUSTER OF OPPORTUNITY FOOD CHAIN AS A CLUSTER OF OPPORTUNITY 4,000 2 percent respectively. In the second quarter of 2009, the subsegment Services, which is under Support, accounted for the largest percentage of employment in the Food Chain (27%). 3,000 2,000 1,000 0 2001 2005 2009 2001 2005 2009 2001 2005 2009 2001 2005 2009 Data Source: CA Employment Development Department, Labor Marketing Information Division (QCEW) Analysis: Collaborative Economics 10 11
  • 7. EARNINGS GROWTH IN FOOD CHAIN EXAMPLES OF OCCUPATIONS IN SOLANO’S FOOD CHAIN Annual Average Earnings by Segment Food Chain earnings increased by Solano & Yolo Counties 2009 Annual Segment Occupation Title Education & Training 12 percent between 2001 and 2008; Median Wage $60,000 however, earnings growth varied by Farmworkers & Laborers, Crop, Nursery, & Greenhouse $19,010 Short-Term On-the-Job Training segment. Annual average earnings Annual Average Wage (inflation adjusted) $50,000 Shipping, Receiving, & Traffic Clerks $28,930 Short-Term On-the-Job Training growth was strongest in Support with Truck Drivers, Heavy & Tractor-Trailer $40,020 Moderate-Term On-the-Job Training wages rising 23 percent over the Distribution $40,000 Computer Operators $45,550 Moderate-Term On-the-Job Training period. Earnings grew 13 percent in Transportation, Storage, & Distribution Managers $92,630 Work Experience Production, 11 percent in Processing, and 7 percent in Distribution. $30,000 Bus & Truck Mechanics & Diesel Engine Specialists $53,000 Post-Secondary Vocational Education Computer Support Specialists $55,140 Associate Degree Processing In 2008, Processing reported the $20,000 Network Systems & Data Communications Analysts $65,010 Bachelor's Degree Distribution highest average earnings at $52,722. Logisticians $74,620 Bachelor's Degree Following closely, earnings in $10,000 Support Market Research Analysts $63,870 Master's Degree Distribution averaged $46,762, Support Production 0 Food Batchmakers $30,770 Short-Term On-the-Job Training and Production followed with average 2001 2002 2003 2004 2005 2006 2007 2008 earnings in 2008 of $39,189 and Food Cooking Machine Operators & Tenders $39,470 Short-Term On-the-Job Training $34,792, respectively. Data Source: CA Employment Development Department, Labor Market Information Division (QCEW) Analysis: Collaborative Economics Team Assemblers $23,940 Moderate-Term On-the-Job Training Processing Mixing & Blending Machine Setters, Operators, & Tenders $31,850 Moderate-Term On-the-Job Training A wide range of job opportunity exists in the Food Chain. Occupations associated with these areas of Bakers $27,460 Long-Term On-the-Job Training business activity represent an array of fields, levels of training, and earnings potential. In every segment Butchers & Meat Cutters $38,810 Long-Term On-the-Job Training training requirements vary from on-the-job training to graduate degrees. For example, in Distribution jobs Chefs & Head Cooks $37,910 Post-Secondary Vocational Education range from the machinists to logisticians. In addition, with all of the changes in agriculture technology there is a need for horticulturalists and chemical engineers. Chemical Technicians $45,250 Associate Degree Industrial Production Managers $97,890 Bachelor's Degree Although Solano County offers a variety of training opportunities related to the Food Chain, there are Marketing Managers $96,710 Work Experience, Plus a Bachelor's or Higher fewer than in the past. Solano County offers opportunities for residents of all ages to learn about farms Weighers, Measurers, Checkers, & Samplers, $22,160 Short-Term On-the-Job Training and agriculture. There are farm programs for schoolchildren as well as adult educational opportunities at Recordkeeping community colleges and the University of California at Davis. These include the following: Laborers & Freight, Stock, & Material Movers, Hand $24,500 Short-Term On-the-Job Training Industrial Truck & Tractor Operators $30,050 Short-Term On-the-Job Training • Schoolchildren have the opportunity to learn academic skills in a farm-based setting at Loma Vista Separating, Filtering, Machine Setters, Operators, & $46,250 Moderate-Term On-the-Job Training Production Farm. Since 1974, Loma Vista farm has taught children about plants and animals through hands-on Tenders activities in an outdoor classroom. Another program for schoolchildren is the Centers for Land Based Maintenance & Repair Workers, General $43,280 Long-Term On-the-Job Training Farming located on the Farm on Putah Creek. On 40 acres of land, the Farm on Putah Creek allows Industrial Machinery Mechanics $61,070 Long-Term On-the-Job Training visitors to participate in educational field trips and observe demonstration projects, and allows high school students to participate in the Student and Landowner Education and Watershed Stewardship First-Line Supervisors/Managers of Production & Operating $63,190 Work Experience Workers (SLEWS) program. Farm Equipment Mechanics $45,790 Post-Secondary Vocational Education • High school students attending Dixon High have the opportunity to develop agricultural interests FOOD CHAIN AS A CLUSTER OF OPPORTUNITY FOOD CHAIN AS A CLUSTER OF OPPORTUNITY Sales Managers $65,670 Work Experience, Plus a Bachelor's or Higher through coursework and participation in agriculture programs. Supervised Agriculture Experience General & Operations Managers $95,690 Work Experience, Plus a Bachelor's or Higher Programs (SAEP) currently involves approximately 100 students in local agriculture projects ranging Packers & Packagers, Hand $19,210 Short-Term On-the-Job Training from assisting local farmers to internships at U.C. Davis. Students gain practical experience in a variety Inspectors, Testers, Sorters, Samplers, & Weighers $43,020 Moderate-Term On-the-Job Training of agricultural fields and some of these internships and partnerships lead to employment opportunities. Machinists $50,370 Long-Term On-the-Job Training Comprehensive courses in Agricultural Earth Science and Agricultural Biology spark interest in agricultural fields. These classes provide guest speakers from U.C. Davis and Chico State University First-Line Sup/Mgrs of Helpers, Laborers, & Material $46,470 Work Experience Movers, Hand and a Dixon High farm for enhanced agricultural education is planned for the future. Support Electrical & Electronics Repairers, Commercial & Industrial $74,160 Post-Secondary Vocational Education Equipment • Solano Community College provides agriculture classes through the Horticulture program, since the Veterinary Technologists & Technicians $31,250 Associate Degree school no longer offers Agricultural Business Classes. U.C. Davis offers many degrees and programs Mechanical Engineers $82,600 Bachelor's Degree through the College of Agricultural and Environmental Sciences. Construction Managers $94,320 Bachelor's Degree Purchasing Managers $100,930 Work Experience, Plus a Bachelor's or Higher Operations Research Analysts $95,040 Master's Degree 12 13