Aug 31, 2012
Washington releases apple industry economic impact study

The Washington Apple Commission has released an economic impact study on the effect the state’s apple industry has on the area.

Washington’s apple industry is a major contributor of income, employment and tax revenues to the state’s economy. The industry boosted the Washington economy by an estimated $7.02 billion in direct, indirect and induced economic activity in 2010-2011. This sector also accounted for an estimated 59,650 jobs and total annual employee compensation of $1.95 billion. Business owners’ income in the state totaled $837.6 million as a result of the apple industry economic activity. The tax revenue contributions of the industry were also very sizable. At the state and local level, the total tax revenues generated by the Washington apple industry were $188.7 million. Federal tax revenues contributions were estimated to be $300.3 million.

Apple exports are a key element of future economic prosperity for the industry and for the prosperity of the Washington state economy. About one third of total fresh apple production is exported. Growers have been expanding high-density tree plantings and adopting new varieties while packers have been investing in new packing and storage facilities. If exports falter, grower income is at risk. This analysis shows that if 5,000 carlots of fresh apples (a carlot is 1,000 40 pound boxes) destined for export were instead added to domestic markets, the income loss to growers would be about $55.17 million. This in turn would negatively impact the Washington economy with a decline of 925 jobs, loss of employee compensation of $37.0 million, loss of state and local tax revenue of $7.34 million and loss of federal tax revenue of $9.48 million.

The entire study can be viewed here.


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