California League of Food ProcessorsEd Yates, President/CEO

California’s Food Processing Industry

Stanislaus County Food Processing By-Product SummitWednesday, December 15, 2004

Modesto, California

Introduction

• CLFP• Food Processing in California, USA and World

– 5000 Registered– Fruit and Vegetable Dominance– Dynamic Changes– Economic Implications

San Joaquin Valley Food Processing

• Markets – food service, retailers, wholesalers/distributors and re-manufacturers

• Trade Sectors – meat/poultry, dairy, fruits/ vegetables/specialty foods, wine/beer/ beverages, grains/baked goods/snacks, candy/ confections, processed nuts/seeds

• Suppliers – farm production, food processing machinery/supplies, veterinary services/ advanced research, engineering, chemicals, labor, construction, packaging, warehousing, distribution

• Community– UC Davis, UC Riverside, CSU Fresno, Cal

Poly, SLO– UC Extension, USDA ARS, Industry

Associations, Cooperatives– Water, telecom, electricity, natural gas,

wastewater treatment– Distribution infrastructure – rail, air, roads,

ports

San Joaquin Valley Food ProcessingEmployment - 2002

• 220,000 Workers, 23% of Workforce• Farms – 72,633

Ag/Services – 69,725

Food Pack/Process – 59,365

Warehouse/Distribution – 13,599

Machinery/Supplies – 6,822• 6,200 Establishments

San Joaquin Valley Food Processing Economic

• $17.6 Billion – 29% of Region• 33% Increase in Value-Added Since 1992• Average Wage - $30,000• $6.7 Billion Wages• $15 Billion Farm

Environmental Issues

• Water Supply• Land Use• Urban Encroachment• Spent Process/Rinse Water• Air Emissions• Organic Residuals/By-products• Solid Waste

Changes in Dynamics

• Consolidations and Mergers• Outsourcing• Global Marketplace• Costs – California• Negative – California• Consumption Patterns• Efficiency – New Technology

By-Product Management

• 50% - Animal Feed• 50% - Soil Amendment

– CEI, Inc.

Thank you