Michigan’s Food & Agriculture Industry Part Of Reinventing Michigan

Michigan Food and Agriculture Industry Contributes $91.4 billion annually to the state’s economy. Employs 923,000 Michigan residents. Nearly 22 percent of people working in Michigan. Leads the nation in production of 18 commodities.

Michigan’s Food and Agriculture Industry Food processing contribute $24.6 billion to Michigan’s economy. Employs nearly 130,000 workers. 1,841 licensed food processors are located in Michigan. Dairy sector is largest -- $14.7 billion annual impact. 54% of dairy sector value is in processing.

By 2050 World’s population will reach 9.1 billion – 34% increase Food production must increase 70% to meet growing demand of an expanding population. 70% of world’s population will be urban – 49% today. Developing countries net imports of cereals will more than double.

Goals

Future Opportunities Reliance on Integrity of Industry Assure food safety Protect Animal and plant health Sustain environmental stewardship Provide consumer protection Enable rural development

Actions to Meet Goals Increase economic impact of food and agriculture Minimizing areas of the state affected by Bovine TB Program by working towards obtaining Bovine TB Free Status for Michigan. Increased migrant labor housing inspections. Conduct Good Agricultural Practices (GAP), Good Handling Practices (GHP) audits, and Harmonized Food Safety Standard audits of Michigan grower operations. Provide regulatory oversight of grain elevators in the business of receiving, buying, exchanging, selling, or storing farm produce. Two new employees to partner with MEDC to enhance growth opportunities within the food and agriculture industry. MDARD is funding a half an agriculture specialist position at MEDC to further advance food and agriculture business opportunities.

Actions to Meet Goals Double agriculture exports 300 companies looking for export market assistance annually. Hired one additional export market specialist. Maintain accredited lab to verify MRL requirements are met for exportation of crops. Issue phytosanitary certificates that certify products meet the requirements of importing countries. Administer and publicize USDA’s Blueberry Certification Program for exporting blueberries to Canada.

Future Opportunities Export Markets 2011 Michigan Exports $2.8 billion generated Employed more than 20,000 workers Accounted for 27% of the value of Michigan farm receipts Ranked 5th and 10th respectively for national exports of fruits and vegetables Top Markets: Canada, Mexico, Japan, South Korea, and China

Actions to Meet Goals Increase Food & Agriculture Jobs Agriculture Development staff are working with workforce training partners in MEDC regions. Working with higher education partners to develop industry specific job training. Growing sector will lead to increased jobs in the food and agriculture sector.

Actions to Meet Goals Improve access to healthy foods $977,421 in grants for regional food systems. Grants will serve as a catalyst for organizing local food entrepreneurs and locally grown food. $930,810 in grants for value added projects. One project focuses on expanding increased use of local livestock in a meat processing facility. Another will look at the feasibility of a pork processing plant in Michigan. Conduct food safety monitoring in order to determine the existence and levels of pesticide residues on fresh fruits and vegetables.

Actions to Meet Goals Increase Food & Agriculture Jobs Additional funding in FY 2013 to support 12 new local conservation district technicians bringing the total number of technicians to 36 and two additional internal staff bringing the total number of MDARD verifiers to five. FY 2013 goal of 700 new verifications and 300 reverifications.

Commitment to Grow Land Based Industries: Agriculture, Forestry, and Mining

Rural Development Strategy Strategic Objective for a Quality of Life Increase economic opportunity and quality in rural communities. Retain educated and trained young people in rural communities. Expand access to a safe and healthy food supply.

Rural Development Strategy How will we accomplish these objectives? Build on existing economic and rural development activities. Champion regional-based approaches. Lead utilization and coordination of private and public assets.

Regional Processor Regional End-buyer Farm Aggregation point/ food hub Example of a Regional Food System Regional distributor Farm Local markets Local distribution Local processors Local markets Local distribution Local processors

Regional Food HubsBusiness Clusters Geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular sector present within a region. (From Michael Porter, Harvard University Business School) Found at: w.isc.hbs.edu/econ- clusters.htm Regional Food Hubs and Business Clusters Working Definition -A centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally food products. (Jim Barham, USDA) Definitions vary from narrow market efficiency functions to those related to visions of building a diversified food culture.

Area: 7,048 square miles (4,178,705 acres of land) Population: 5,192,161 Counties: Genesee, Lapeer Lenawee, Livingston, Macomb Monroe, Oakland, St. Clair, Washtenaw, Wayne Watersheds: Huron, Raisin, Stony Creek, Rouge, Clinton, Pine, Belle, Black, Saginaw, Manistee Southeast District Regional Rankings (Out of 9): #1 in Michigan in number of whole food (439), dairy (27), and meat (23) processing plants. #1 in Michigan in number of retail food (7,639) and food service (18,564) establishments. #1 in Michigan in number of farms using organic methods (135; 37 certified) #1 in Michigan in acres of tomatoes (1,969) #2 in Michigan in value of direct-to- consumer sales ($14,407,000)

Area: 570 square miles (306,670 acres of land) Population: 831,077 Largest City: Warren Watersheds: Clinton and Belle Macomb County Top 10 Rankings: #2 in Michigan in meat processing plants (4). #3 in Michigan in number of food service establishments ( 2,732). #3 in Michigan in direct-to-consumer sales ($3,507,000) #3 in Michigan in number of agriculture operations (4) #4 in Michigan in number of whole food processing plants (59) #6 in Michigan in revenue from nursery greenhouse, floriculture, and sod ($27,159,000) #8 in Michigan in number of food warehouses (28).

Agriculture Development Specialists

Michigan Dept. of Agriculture & Rural Development MIagriculture Michigan Department of