Making Georgia the National and International Leader in the Food Processing Industry in the 21st Century
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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.
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.