WASHINGTON, DC - The International Fresh Produce Association (IFPA) has provided some positive news to start out this week, after an economic impact study conducted on the organization’s behalf showed the United States fresh produce and floral industry's labor income has nearly reached pre-COVID levels. The report also highlights the significant role that the industry plays in the country’s food system and as an employer.
“Fresh produce and floral supply are important to every single American as we not only seek to provide nutrients to keep people healthy but employ millions of Americans and pump billions of dollars into the U.S. economy,” said Cathy Burns, Chief Executive Officer of IFPA. “This study, the first of its kind, highlights our vital role and affirms our commitment to making sure we continue this critical mission, supplying insights into our industry as Congress prepares to reauthorize the Farm Bill.”
The Economic Impact of the U.S. Fresh Produce and Floral Supply Industry was compiled by Jack Kleinhenz of Kleinhenz & Associates, a release explained. This report was released in Washington, DC, last week, and marks the first time the association has conducted a comprehensive study of the industry’s role in U.S. jobs, taxes, and wages.
In the report, it shows that the fresh produce and floral industry plays a key economic role in each state, adding $339.4 billion to the national output in 2022. Additionally, the industry generates a total of $43.7 billion per year in federal, state, and local taxes and spin-off industry sales.
The U.S. fresh produce and floral industries support 1.2 million total jobs across all 50 states in 2022 and $120.1 billion in labor income. The absolute number of employees involved in the industry had decreased 4 percent from 1.18 million workers in 2017 as a result of a COVID-related slowdown. The industry had 1.13 million workers in 2021 and is on track to reach pre-pandemic levels this year.
“In order to maintain year-round access to fresh fruits and vegetables at a cost that is affordable for consumers, we must find workers to scale the labor force at all points along the supply chain,” Burns said. “The produce industry, despite being a reliable and profitable employer in every state, is seeing a decline in the number of available, skilled workers. This report shows the impact of delayed labor reform on the workforce, which will continue to impact consumers at foodservice and in grocery stores.”
Click here to read more findings from the report.
How will this forward industry momentum continue into the next year? Stay tuned to ANUK for answers.
