![5489fde22723d.image[1]](https://www.thebullvine.com/wp-content/uploads/2014/12/5489fde22723d.image1_.jpg)
This past September was an exciting month for the Wisconsin dairy industry as new numbers revealed just how big of a deal dairy cows are to Wisconsin’s economy.
The UW-Extension released its full report in September on the Economic Impact of Wisconsin Agriculture, based on the 2012 USDA-NASS (National Agricultural Statistics Service) Agriculture Census, and, according to the report, agriculture has an $88.3 billion impact on the state’s economy—up from $59 billion in 2007.
Wisconsin’s dairy industry is the largest sector of agriculture and accounts for nearly half of the total economic impact contributing $43.4 billion in industrial sales to the state’s economy. That’s an increase of 63.7 percent.
The study, authored by Steven Deller, a UW-Extension community development specialist and professor in the UW-Madison agricultural and applied economics department, is a follow-up to a previous study published in 2009 using 2007 data.
According to the study, despite the combined effects of the drought of 2012 and the Great Recession, agriculture remains a critical component of Wisconsin’s economy. The study highlights the overall strength of the dairy industry and the role it plays in fueling the state’s economy, particularly growing industry segments which include creamery butter and dry, condensed and evaporated dairy products. Through diverse industry segments, it is clear dairy contributes more to Wisconsin’s state economy at $43.4 billion than citrus does to Florida, $9 billion or potatoes to Idaho, $6.7 billion.
With Wisconsin’s 1.2 million cows pumping economic life throughout the state, it is clear why dairy would be the largest contributor to the state’s economy.
If you were to look at how much each Wisconsin dairy cow generates, the numbers are astounding. The average Wisconsin dairy cow generates $34,000 a year in economic activity, which is then circulated back into the community through local schools, safety services, roads, retail activities and on and on. In fact, the dairy industry fuels the state’s economy at more than $82,500 per minute.
The study also indicates 78,000 jobs in agriculture are generated by the dairy and food processing sectors, or about one in 10 people working in Wisconsin hold a job related to this key industry. These jobs include farmers, their employees and those providing them with goods and services—veterinarians, crop and livestock consultants, feed and fuel suppliers, equipment dealers and lenders—as well as those employed in equipment manufacturing and food processing. That agriculture has grown 50 percent in terms of its total economic impact over a five year period is impressive, and is due in part to the hard working individuals who produce quality products for markets here in the United States and abroad.
“Dairy continues to flourish as a strong and vital industry in our state,” said James Robson, CEO of the Wisconsin Milk Marketing Board. “As an organization, we are honored to promote and serve the many dairy families and businesses that help generate $43.4 billion dollars for the Wisconsin economy.”
It is because of organizations like PDPW and others that support producers and industry professionals who share the common bonds of dairy and are committed to continuing education of producers and industry professionals and promotion the state’s award-winning dairy products. Development and innovation will continue to fuel the industry, which will allow Wisconsin to maintain its presence as a leader in the dairy industry moving forward.
The full report “Contribution of Agriculture to the Wisconsin Economy: Updated for 2012” is available at http://wp.aae.wisc.edu/wfp/contribution-of-agriculture-to-the-wisconsin-economy.
Additional Wisconsin Infographics and other statistics are available at www.dairydoingmore.org/economicimpact/statistics/infographics.
Patrick Geoghegan
Wisconsin Milk Marketing Board, a mission sponsor of PDPW
