[CED/CD/EAT] Fwd: 30% of Arizona Household Spending on Raw Agricultural Food Products Comes from Arizona Farm and Ranches

Thu Jul 13 13:54:04 MST 2017

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From: Julie Murphree <juliemurphree at azfb.org<mailto:juliemurphree at azfb.org>>
Date: July 13, 2017 at 11:22:36 AM MST
To: "George Frisvold (frisvold at ag.arizona.edu<mailto:frisvold at ag.arizona.edu>)" <frisvold at ag.arizona.edu<mailto:frisvold at ag.arizona.edu>>, "Ashley Kerna (akerna at email.arizona.edu<mailto:akerna at email.arizona.edu>)" <akerna at email.arizona.edu<mailto:akerna at email.arizona.edu>>, "Faith Schwartz (faithpschwartz at email.arizona.edu<mailto:faithpschwartz at email.arizona.edu>)" <faithpschwartz at email.arizona.edu<mailto:faithpschwartz at email.arizona.edu>>
Cc: Julie Murphree <juliemurphree at azfb.org<mailto:juliemurphree at azfb.org>>, Jeff Silvertooth <silver at ag.arizona.edu<mailto:silver at ag.arizona.edu>>, "sburgess at cals.arizona.edu<mailto:sburgess at cals.arizona.edu>" <sburgess at cals.arizona.edu<mailto:sburgess at cals.arizona.edu>>
Subject: FW: 30% of Arizona Household Spending on Raw Agricultural Food Products Comes from Arizona Farm and Ranches

See below.

You may recall quite a while back I told you two that I planned on sending out your economic information to statewide media. Well, I just now completed the task.

Faith, I’m alerting you too since I know you also wrote an article on this for the U of A news channels.

If I get a request from media for either of you to be interviewed, I’ll forward and keep Faith in the loop.

Jules

[Fill Your Plate]<http://fillyourplate.org/>

[Julie Murphree]

Communications and Organization Director

[Arizona Farm Bureau]<http://azfb.org/>

325 South Higley Road,
Suite 210
Gilbert, AZ 85296

480.635.3607 (office)
480.276.7444 (cell)

juliemurphree at azfb.org<mailto:juliemurphree at azfb.org>

Fill Your Plate:
Go to Arizona Farm Bureau<http://azfb.org/>
Blog: Julie's Fresh Air<http://juliesfreshair.com/>

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From: Arizona Farm Bureau [mailto:info at azmail.insidefb.com]
Sent: Thursday, July 13, 2017 11:15 AM
To: Julie Murphree <juliemurphree at azfb.org<mailto:juliemurphree at azfb.org>>
Subject: 30% of Arizona Household Spending on Raw Agricultureal Food Products Comes from Arizona Farm and Ranches

[https://www.azfb.org/website/logo.tif]
Contact Julie Murphree
AZFB Outreach Director
(480) 635-3607
(480) 276-7444 (cell)
juliemurphree at azfb.org<mailto:juliemurphree at azfb.org>
FOR IMMEDIATE RELEASE
30% of Arizona Household Spending on Raw Agricultural Food Products Comes from Arizona Farm and Ranches
---ARIZONA, July 13, 2017--- A recent study was done by the University of Arizona's Cooperative Extension and Department of Agricultural and Resource Economics reveals a surprising amount of agriculture product grown by Arizona farmers and ranchers that actually ends up on Arizona families' plates.
According to lead researcher Ashley Kerna, an Economic Impact Analyst at the University of Arizona's Cooperative Extension and Department of Agricultural and Resource Economics, approximately 30% of Arizona household spending on raw agricultural food products comes from Arizona farm and ranches.
Said Kerna, "The trick was 'getting under the hood' of the model to figure out how much of what is produced on-farm or on-ranch ends up in Arizona households."
"Obviously, consumers, for the most part, do not buy these products directly from farms and ranches," added George Frisvold, Ph.D., an economics professor, and extension specialist for the University of Arizona's College of Agriculture and Life Sciences, who regularly works with Kerna on economic studies. "The purchases are made at food stores and restaurants, often as raw ingredients consumed in processed food."
Even for processed foods, an estimated 18% of Arizona household spending on processed food products comes from Arizona processing facilities. While these processing facilities may not necessarily be using Arizona ingredients, there are certain food products that are produced and processed in-state that fulfill a portion of Arizona's household demand.
To conduct the study, the Input-Output model Kerna and Frisvold used, IMPLAN, has data on trade flows between more than 5,400 industries and to households of different income categories. Trade flows describe the movement of goods and services between Arizona and the outside world, generating what is known as Regional Purchase Coefficients (RPCs) for all commodities. An RPC is the proportion of local demand that is supplied by local producers. The IMPLAN trade flow data is based on national statistics from the Department of Commerce (Bureau of Economic Analysis) and Census Bureau. The U of A team used the IMPLAN trade flow data to calculate RPCs for both on-farm products and for processed foods.
These RPCs are estimated based on household demands, not industry demands. So the RPCs presented here are estimates of the proportion of local household demand for agricultural commodities and processed food products that are supplied locally (i.e., by the region to itself). In this case "locally" means within Arizona.
RPCs are higher for individual items that Arizona specializes in such as eggs, vegetables, and melons, beef, fluid milk and tortillas. It is lower for things we do not produce much (or any) of such as sugar, chocolate, breakfast cereal, seafood, and poultry.
As Frisvold and others pointed out, Arizona trades agricultural commodities with the other 49 states and globally, with countries all around the world. This means Arizona's $17.1 billion agriculture industry exports commodities where we have a comparative advantage in production and imports commodities from other areas that have different comparative advantages.
As our U of A economic team points out, many items coming from outside the state are processed foods. Arizona's food manufacturing industries are not as large as other states that specialize in corn and wheat. The food processing sector has been growing though. Milk and dairy product production, in particular, are important and has grown in Arizona.
The query on this topic emerged this last spring and the Economic Impact Analyst (EIA) team, as they're known, had an answer for the agriculture community in about two weeks.
Editor's Note: The Economic Impact Analyst team formed over four years ago within the Cooperative Extension System (CES) in an effort to address the many issues and needs the agriculture industry has to quantitatively document the impacts of agriculture in Arizona and the CES programs. Collectively, the EIA group is providing to the CES the capacity to address questions and issues regarding the percentage of Arizona agriculture going to Arizona families. The EIA team does so in a technically correct manner, based on appropriate economic methods, providing valuable and accurate information in a timely manner.
About Arizona Farm Bureau
The Arizona Farm Bureau is a grassroots organization dedicated to preserving and improving the Arizona agriculture industry through member involvement in education, political activities, programs, and services. As a member services organization, individuals can become a member by contacting the Farm Bureau. Go to www.azfb.org<http://www.azfb.org/> to learn more.

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