Industry clusters
Download
1 / 22

Industry clusters - PowerPoint PPT Presentation


  • 147 Views
  • Uploaded on

Industry clusters. Planning Issues in Ag Lecture 3. Industry clusters continued…. A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementary programs. Industry clusters continued….

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Industry clusters' - derica


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Industry clusters

Industry clusters

Planning Issues in Ag

Lecture 3


Industry clusters continued
Industry clusters continued…

A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementary programs.


Industry clusters continued1
Industry clusters continued…

  • Dependent on each other (add value from raw products and then send to other places to attract money to area)

  • Attracts jobs/wealth and gives identity

  • Production to Processing to distribution

  • Business building with other businesses drives local economy

  • Adds value to production

  • Clusters will increase employment

  • Clusters are geographically concentrated and connected


California ag summary
California Ag Summary

  • San Joaquin Valley – 8 counties (most productive ag in state and nation)

  • Experiencing change in population (1970 growth accelerated)

  • -diverse cultural and ethnic populations increasing

  • -impact on major industry( production and economic)

  • Gross farm income in 2000 – $27-30 billion (what did we say this was today?)

  • California represented 13% of US Gross Farm Income


Since 1948 leading counties have changed 2002 census
Since 1948 leading counties have changed (2002 Census)

  • Not LA anymore

  • Fresno 2.7 billion

  • Tulare 2.3 billion

  • Kern 2.0 billion

  • 6 counties in SJ are in top 10 (> $1 billion income) Kings and Madera are missing

  • Can you find the latest data on Ag Values from the CDFA or Farm Bureau Websites?


All private land in california
All private land in California

1/3 of state private land linked to Ag

  • 27 million acres in Agriculture in 2000

  • 1950 Ag land … 37 million

    Amount of acres declined in Ag…why?

  • Ag itself fewer farmers

  • Consolidation – farms have decreased, but size has increased


Farmland trust will not stop growth nor stop decline in land
Farmland Trust will not stop growth nor stop decline in land.

  • What kinds of choices do we need to make?

  • Which Ag land is more or less important?

  • Which types of development should be encouraged?

  • Questions debated throughout this course…


Agricultural land
Agricultural Land land.

  • 2/3 rangeland w/ pastures for cattle / other livestock

  • 1/3 cropland (9 million acres) 20% in SJ Valley

  • Different types of soil, water key to quality of land and…

    • Types of crops that are grown


Specialty crops commercially produced only in california 99 or more of total u s production
Specialty Crops Commercially Produced Only in California land.(99% or more of total U.S. production)*

  • Almonds

  • Artichokes

  • Clingstone Peaches

  • Dates

  • Figs

  • Kiwifruit

  • Nectarines

  • Olives

  • Persimmons

  • Pistachios

  • Plums, Dried (Prunes)

  • Raisins

  • Walnuts * Source:CDFA Resource Directory 2002


Ca productivity
CA productivity land.

Not all consumed in state or nation

  • Most exported (2000) $6.6 billion Ag product exported. What is this figure today?

  • CA export (#1 exporter in nation)

  • #6 significant Ag exporter in the world. Where do we rank today?

  • Has our import/export balance changed in Ca?


Crops in order of most exported 2003
Crops in order of most exported land.(2003)

  • Almonds (70% exported)

  • Cotton (So valley)

  • Wine

  • Table grapes

  • Oranges

  • Milk/cream

    2 countries import almonds

    #1 Canada

    #2 Japan


Ca 1 state in personal income
CA #1 state in personal income land.

  • 7 ½% of all jobs linked directly/indirectly to agriculture

  • 6 ½ % personal income (all income household)

    wages, profits, rent, interest

    Valley:

  • 30% jobs linked directly/indirectly to agriculture

  • 20% personal income related to agriculture


Jobs linked directly indirectly
Jobs Linked… land.directly:indirectly

  • Indirectly – clusters of related industry

  • Directly - Production of food & fiber

    • Creates/generates $$$

    • Economic activity…employment, income, sales, sales tax

    • Agricultural ripple effect can be good ( increased income for farmers, businesses etc)

    • Or it can be bad (reduced income, employment, businesses go under)

    • All are related to each other especially in the valley


Employment multipliers for the san joaquin valley 1996
Employment Multipliers for the San Joaquin Valley: 1996 land.

Industry Employment multiplier

  • Agriculture 1.50

  • Mining/construction 1.99

  • Food Processing 3.88

  • Other manufacturers 2.44

  • Transportation/public utilities 2.58

  • Wholesale trade 1.77

  • Retail trade 1.30

  • Fire 2.03

  • Services 1.58

  • Government 1.37


Share of total of all industry output
Share of total of all industry output… land.

  • Focus on Ag

  • Valley 13% CA 3%

  • Focus on Exports (leaving region)

  • Ag and food processing is the highest


Farm wage and salary employment growth in 1983 2000
Farm wage and salary employment growth in 1983 – 2000 land.

Importance 2000 1983

  • Valley higher 17.5% 20.%

  • Than CA 2.7% 3.4%

  • 1 out of 5 jobs in CA is Agriculturally related

  • Most people think that agriculture is considered open space instead of business.


Where does the information come from
Where does the information come from? land.

  • Every 5 years there is an ag census:

  • It measures: # of acres, change in # of farms, decrease in amount of land, decrease in # of farms, # of family farms


Structure of ag is changing 3 points
Structure of Ag is changing land.(3 points)

  • Population…fewer people involved in production agriculture, more people involved in services that provide for agriculture’s needs

  • Importance of Ag clusters…related businesses depending on each others’ prosperity

  • Changing structurally…less farms, larger farms…vertical integration…direct marketing


Factors in agriculture changing
Factors in Agriculture Changing land.

  • Technology - yields are higher, but not net yields ?

  • Vertical integration

  • Foreign competition

  • Regulatory costs

  • Consolidation may be the key, but family farms may suffer


Cause and effect
Cause and Effect… land.

  • In recession ( ¼ of farmers bankrupt)

  • Purpose of public policy is to pressure Ag or an individual



ad