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Study shows tree fruit continues to be big business
YAKIMA, Wash. (AP)--Tree fruit continues to be big business in Washington state, according to a new economic study by the Washington State Horticultural Association.
The study found the tree-fruit industry contributes $5.6 billion to the state's economy, based on the 2003-04 crop, and accounts for about 140,000 jobs.
The study looked beyond the commonly quoted farm-gate value of apples, pears, cherries and soft fruits. The farm-gate value refers to the price received by the farmer, but it misses indirect impacts as the fruit goes to packers, processors, marketers and shippers.
Even broader impacts come in the form of purchases the industry makes from its suppliers in other sectors of the economy, income earned by fruit-industry workers and owners, and their individual purchases and tax payments.
Taken together, this measure of economic output easily surpasses the much-touted biotechnology industry, the study found.
"The tree-fruit industry is the Boeing and Microsoft in Yakima and Wenatchee and the Okanogan," said Jim Hazen, executive director of the Washington State Horticultural Association, which released the study Jan. 31.
The author of the study was William S. Jensen, professor emeritus at Lewis & Clark College of Business and Economics.
Ivars Graudins, a supervising economist with the Washington Employment Security Department, said the actual impact reported in these type of studies depends on the author's assumptions. After a cursory review, Graudins said the study used standard models and reliable data.
The actual dollar figures seemed "on the high side," Graudins said, "but then again, last year was certainly a good year."
The release of the study was timed to coincide with the beginning of the legislative session. Hazen said his group wants lawmakers, other elected officials and certain regulatory agencies to see the results.
Quantifying the economic impact of the tree-fruit industry will help protect it from burdensome regulations and generate political support, he said.
The information is also useful in drawing more investment in research and technology from both the public and private sectors, said Jim McFerson, manager of the Washington State Tree Fruit Research Commission, which paid for part of the $8,500 study.
"It definitely helps us," McFerson said. "It puts into perspective why we ought to invest taxpayers' dollars in this industry."
Date: 2/24/05
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