1. California League of Food Processors Ed Yates, President/CEO California’s Food Processing Industry Stanislaus County Food Processing By-Product Summit Wednesday, December 15, 2004 Modesto, California

2. Introduction CLFP Food Processing in California, USA and World –5000 Registered –Fruit and Vegetable Dominance –Dynamic Changes –Economic Implications

3. 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

4. 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

5. San Joaquin Valley Food Processing Employment - 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

6. 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

7. Environmental Issues Water Supply Land Use Urban Encroachment Spent Process/Rinse Water Air Emissions Organic Residuals/By-products Solid Waste

8. Changes in Dynamics Consolidations and Mergers Outsourcing Global Marketplace Costs – California Negative – California Consumption Patterns Efficiency – New Technology

9. By-Product Management 50% - Animal Feed 50% - Soil Amendment –CEI, Inc.

10. Thank you