
“CALIFORNIA GROWN” ECONOMIC IMPACT ANALYZED
SACRAMENTO - A recently released statewide study reveals that relatively minor shifts in Californians' purchasing decisions have a major impact on the state's economy and job outlook.
According to study findings, if Californians increase purchases of California grown agricultural products by just 10% annually - which equates to about $1.63 per week for the average Californian - it would result in 5,565 new jobs throughout the state and nearly $1.38 billion in additional spending due to the increased business activity. In addition, the added economic activity would generate $188 million in taxes for local and state governments, the report said. Importantly, it stressed, the figures "do not assume an increase in any household spending, simply documenting the effect of choosing the products of California's farms, ranches, forests, and fisheries over products available from out-of-state."
If California grown purchases are increased by 25% annually - which equates to about $4.12 per week for the average Californian - the resulting economic impact becomes even more substantial. In fact, it said, a 25% increase in the purchase of locally grown products would result in 13,913 new jobs throughout the state and $3.46 billion in additional spending. And, the growth in business activity would generate $470 million in taxes for local and state governments. "The benefits of purchasing more California grown products come not only to farms, but also to other businesses, rural and urban, due to the increased demand for their goods and services, to those who will find jobs, and to local and state government in the form of additional taxes being generated by the economic activity," the report said.
Commissioned by the Buy California Marketing Agreement (BCMA), the study was conducted in July, 2003 by Dennis Tootelian, professor of marketing and director of the Center for Small Business in the College of Business Administration at California State University, Sacramento. The "California Grown" campaign is funded by the government-sponsored California Initiative, the California Department of Food and Agriculture, the US Department of Agriculture, and 26 California agricultural industry organizations.
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