The Food Industry in Georgia

Food processing is one of Georgia's leading industrial sector and one of the largest industrial employers in Georgia.

The industry

• employs more than 58,700 individuals;


• has more than 875 small, medium, and large companies located across the state;


• has a total value of shipments in excess of $16.2 billion annually.

One of the unique features of Georgia's food processing industry is its broad diversity in terms of size, production, and geographic distribution. Virtually every region of the state feels the economic impact of this important industrial sector.

The Importance of the Food Processing Industry in Georgia

Manufacturing is a vital part of Georgia's economic well-being. Almost one in four employed persons in Georgia in 1990 worked in this sector (County Business Patterns, 1990, Bureau of the Census). Of those workers employed in manufacturing, 54,000 were directly involved in manufacturing food products - taking the raw materials produced by the agricultural sector and transforming them into goods that can be either consumed in Georgia or shipped throughout the United States and abroad. Important Georgia products, such as peaches, peanuts, and poultry, find their way into the American kitchen as frozen fruits, roasted nuts and peanut butter, and chicken filets. The food processing industry in Georgia gives the consumer convenient and safe agricultural products that in their raw form can be highly perishable or inconvenient for today's busy consumer to prepare.

The food processing industry is part of a complex, interlinking group of sectors, and the industry's impact is felt on many other sectors as well. For example, its prosperity affects transportation; wholesale and retail trade; and construction - food products must be transported, warehoused, and sold. Furthermore, researchers, economists, marketing experts, advertisers, and government regulatory agencies involved with aspects of food processing are part of this complex scenario. So is the consumer whose continues health and welfare are dependent on a high-quality, affordable product.

Georgia's population of 6,478,216 (1990 Census) is 2.6 percent of the national total (248,709,873). However, Georgia's food processing industry produces a far greater percentage in key areas than its percentage of population. The state produces 14 percent of all poultry nationally; 6 percent of bakery products; 5.8 percent of sugar and confectionary products (which includes salted and roasted nuts); 3.8 percent of fats and oils; 3.6 percent of beverages; and 3.2 percent of grain mill products.

Following a national trend, Georgia's food processing establishments decreased in number from 1972 to 1990. However, while the number of employees in the national food processing sector fell by over 100,000 (from 1.569 million to 1.452 million) during this period, Georgia's employment in this sector rose from 46,200 to 54,000. Nationally, value of food shipments increased from $115 billion in 1972 to $384 billion in 1990, a three-fold increase. In Georgia, growth in value of food shipments during this period outpaced the national rate, rising from $2.6 billion to $12 billion, almost a five-fold increase. (By comparison, the Consumer Price Index increased approximately three-fold in this period.)

Georgia's food processing industry also has grown much faster than its farm industry. The value of shipments for the farm industry has risen from $0.59 billion in 1972 to $1.83 billion in 1990, a three-fold increase; when adjusted for inflation (as indicated by the Consumer Price Index), this figure really indicates a flat growth rate. Thus, in comparison with the nation and with the farm industry, Georgia's food processing industry has grown at a much faster pace. This growth indicates the industry is healthy. In addition, its diversity in size, type, and geographic area makes it a significant contributor to Georgia's economic stability.