$1.9 Billion – Amount Buying Locally Grown Produce Sales Would Pump Into Georgia’s Economy, Study Says

For the first time we can begin to paint a picture of the impact that buying locally grown produce would have on Georgia’s economy, thanks to research conducted by the University of Georgia’s College of Agricultural and Environmental Sciences Center for Agribusiness and Economic Development.

The study, “The Local Food Impact: What if Georgians Ate Georgia Produce?” reports that, if each of the approximately 3.7 million households in the state devoted $10 per week to produce grown in Georgia, more than $1.9 billion would be pumped back into the state’s economy.

And for every 5 percent increase in local produce purchasing, the state would see 345 additional jobs, $43.7 million more in sales, and $13.6 million more in farmer income.

“These findings are some of the strongest demonstrations so far of what a small change in consumer behavior could mean for farmers, and for the entire state,” says Georgia Organics Executive Director Alice Rolls. “More than that, I hope this study gets leaders state-wide asking why we don’t see every day foods for our Southern diets growing in the fields of Georgia.”

The study also found that Georgians eat less than the national average of locally grown food. The study’s authors generated scenarios that approximate what agriculture production would be like if Georgians consumed the national average of locally grown food. Currently, direct farmer to consumer sales contribute 132 jobs, $4.5 million in labor income, and $14.4 million in sales.

If Georgia produce farmers increased direct farm-to-consumer produce sales to the national average level, the result would be an overall statewide contribution of 228 jobs, $8.1 million in labor income, and $25.8 million in sales.

In addition, study authors analyzed the potential of individual crops by comparing the amount that average Georgians eat, and the amount that Georgia farmers grow.

They found, for example, the average Georgian eats about 30 pounds of fresh lettuce per year, or about 285 million pounds state-wide. Yet the state produces less than 245,000 pounds per year, which is less than one-tenth of one percent of the amount of lettuce that Georgians consume. Closing that gap would generate an additional $83.6 million in lettuce sales.

Similarly, there are major gaps for other produce, including a $228 million gap for apples, a $62 million gap for bell peppers, a $46 million gap for a broccoli, a $12.8 million gap for carrots, a $124 million gap for pecans, a $235 million gap for tomatoes, and a $93 million gap for watermelon.

“Looking at the quantity of foods directly marketed in Georgia, there is a tremendous opportunity there,” says author study Kent Wolfe, agricultural economist with the Center for Agribusiness and Economic Development. “Georgia’s food product sales directly to consumers account for a small fraction of their total sales. Farmers get to keep a larger percentage of their food dollar when they sell directly to stores, restaurants or other consumers.”

According to the 2007 Agricultural Census, Georgia’s direct sales accounted for .18 percent of their total sales. Rhode Island sold 9.5 percent of its agricultural products directly to consumers and Massachusetts sold 8.5 percent through direct sales.

To access the entire study, which was funded by the Center of Innovation for Agribusiness along with the other partners, click here.
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Blueberry Grant Focuses Research on Significant Georgia Fruit

Blueberries are becoming big business in Georgia. University of Georgia experts plan to use a $1.7 million U.S. Department of Agriculture Specialty Crop Research Initiative grant to lead an effort to make the Southeast the leading producer of the fruit.

The U.S. has 75,000 acres of cultivated blueberries. A third of that is grown in the South. The region is on track to become the hub of U.S. blueberry production within the next five years, said Harald Scherm, a plant pathologist with the UGA College of Agricultural and Environmental Sciences.

A spring freeze severely damaged Georgia’s blueberry crop in 2007. But the 2006 crop was worth $75.8 million. The berry has the potential to add millions of dollars more to rural economies, said Gerard Krewer, a UGA Cooperative Extension fruit crop horticulturalist.

“Blueberries are grown in rural areas, areas that really need economic boosting,” Krewer said. “Blueberries are becoming a major horticultural commodity in southeast Georgia.”

Scherm will lead a team that includes Krewer and CAES horticulturists Dan MacLean and Anish Malladi, plant pathologist Phil Brannen, food scientist Rob Shewfelt and engineer Changying Li. The team will collaborate with colleagues in Florida, North Carolina, West Virginia and Mississippi.

The grant will be used to develop a way to harvest the berries mechanically while not damaging or dropping a majority of the fruit. The research team will also use the grant funds to genetically improve fruit quality and to fight diseases that are just starting to plague blueberry bushes.

Georgia producers predominately grow two types of blueberries – rabbiteye and southern highbush.

Rabbiteye – the variety traditionally grown in Georgia – has a thicker skin and is generally harvested in June and July. The development of the southern highbush variety allows growers to start harvesting blueberries in April and May, a period when berries are in short supply and prices are much higher.

But with the extra profits came new problems. The southern highbush has thin skin and bruises easily. Because of this, most are currently harvested by hand. Competition for farm workers and tighter immigration restrictions could cause the cost of harvesting to skyrocket for the crop in coming years. Hand-harvesting now cost farmers as much as 70 cents per pound.

Farmers now need machines that better harvest their crop. Current harvesting machinery drops too many blueberries – as much as 25 percent of the crop and can bruise delicate berries. Damaged berries are only good for the frozen market, and producers get much lower prices for frozen berries than they do for fresh.

Besides coming up with a better harvesting method, another way to deal with the thin skins of southern highbush is to breed new varieties with thicker skins, or with a crispy flesh.

Crispy flesh varieties are currently being developed by university breeding programs in Florida, North Carolina and Georgia. After narrowing down the varieties, UGA food scientists will use taste panels to determine which type of new southern highbush blueberry consumers would most likely buy.

“With so much blueberry acreage going in the last few years, there’s not been enough new plants to go around,” Scherm said.

New plants are propagated through cuttings, and he thinks this may help spread debilitating diseases not seen before. These diseases include blueberry red ringspot virus, bacterial leaf scorch and Botryosphaeria stem blight. Leaf scorch and stem blight have killed many southern highbush blueberry plantings in recent years.

Bacterial leaf scorch was first documented in 2006. Very little is known about how to control it. Scherm hopes to find answers to these questions primarily by studying disease epidemiology, transmission modes and cultivar resistance.

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Georgia's Forest Industry Contributions Recognized

Governor Sonny Perdue has proclaimed October 19-25 National Forest Products Week,
highlighting the Georgia Forestry industry’s $28.5 billion impact on the state in 2007. According to statistics released by The Georgia Institute of Technology, the Forestry industry also provided
employment for more than 141,000 Georgians and compensation of $6.7 billion to employees and proprietors.

“Our state is one of the nation’s leading pulp and paper producers,” said Nathan McClure, Forest
Marketing Director for the Georgia Forestry Commission. “While the building products industry is being affected by downturns in real estate, the outlook is for positive future growth in relation to bioenergy.”

According to the report, the “Manufactured housing” economic impact sector posted the greatest
loss between 2006 and 2007 at 14.7%. “Pulp and Paper” and “Packaging” were two sectors that
experienced gains during 2007, reflecting increases in wood products exports.

Georgia ships more than $16 billion of forest products, such as lumber, paper, paperboard and
allied products every year. The report shows local economies of 37 Georgia counties are “very” or
“critically” dependant on the forest manufacturing industry. The Forest Industry ranks second in Georgia behind food processing when considering compensation to employees and proprietors. Forestry ranks third behind textiles and food processing when considering number of employees.

“Construction is continuing on the state’s first commercial scale pine-to-ethanol production plant in Soperton,” said McClure. “Plans have also been announced to build five pine-to-electricity plants in the state. Our rural forestry economy can be expected to improve as more investments are made in Georgia’s Bioenergy Corridor.”

The complete 2007 Economic Impact of Forest Products Manufacturing in Georgia report can be
viewed at GaTrees.org/Forest Marketing/Doing Business in Georgia.

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