1 OVERVIEW of DVRPC Philadelphias Metropolitan Planning - - PDF document

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PART 3: Agricultural Resources & PART 4: The Food Economy March, 31, 2009 Study Advisory Committee Meeting

OVERVIEW of DVRPC

Philadelphia’s Metropolitan Planning Organization (MPO), created in 1965 Interstate, intercounty, and intercity agency Prioritize transportation funding 2 States, 9 Counties, 353 Municipalities Responsible for the region’s Long Range Plan and Air Quality Strong “Home-Rule” control

• f land use

[insert map]

FY09 SCOPE OF WORK

Part 1: Food Policy Network Analysis Part 2: Food Freight Analysis Part 3: Agricultural Resources Assessment Part 4: The Food Economy

PART 1: PERCEPTIONS & OPINIONS

Identify stakeholders Interview stakeholders Inventory the work of area organizations Collect Recommendations and Best Management Practices

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OPPORTUNITY 1: Proximity to Markets

Source: U.S. Census Bureau 2000

ADVANTAGE:

Proximity

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CHALLENGE: Rising Costs

Source: USDA/ERS Agricultural Income Report, 2007

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CHANGE:

Local, Sustainable, Direct, and Niche Markets

Source: USDA Agricultural Marketing Service

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PART 2: FOOD DISTRIBUTION

Food is a “high turnover” commodity How do goods move through the region? Freight Analysis Framework

Origins and Destinations

• f food

Supply chain case studies

FOOD FREIGHT COMPARED TO OTHER COMMODITIES 2002 T 2002 Total Wei Weight of

• f Mo

Move veme ment nts

All Other Commodities 71% Total Food 13% All Pipeline Movements 16%

FOOD BY COMMODITY TYPE: 2002 Weight

935.0 7,828.5 10,025.8 784.1 2,481.3 2,914.4 13,721.8 1,297.3 2,500 5,000 7,500 10,000 12,500 15,000 Tons (thousands) Live Animals Cereal Grains Other Ag Prods. Animal Feed Meat / Seafood Milled Grain Foodstuffs Alcoholic Beverages

ORIGINS OF FOOD (Leg of a trip)

3000 6000 9000 12000 15000 18000 21000 2002 2010 2035 Year Tons (thousands From 100 Mile From Other From International Within Philadelphia CSA

3000 6000 9000 12000 15000 18000 2002 2010 2035 Year Tons (thousands To 100 Mile To Other To International Within Philadelphia CSA

DESTINATIONS OF FOOD (Leg of a trip)

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PART 3: Agricultural Resources Assessment

• Agricultural Land Base
• Agriculture Industry

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PART 3: Agricultural Resources Assessment

• Agricultural Land Base
• Agriculture Industry

Agricultural Land Base: Quick Facts about the Study Area

40.7% 27.2% Portion of Land Area Devoted to Agriculture 2.3% $297,220,491,000 $6,732,916,000 Total Market Value of Agricultural Products Sold 2.1% 2,204,792 45,673 Number of Farms 0.6% 1,440,775 8,123 Total Agricultural Lands (sq miles) 84.6 1,034.9 Population Density (persons/ sq mile) 0.8% 3,537,438 29,910 Total Land Area (sq miles) 10.3% 299,398,484 30,954,544 2003 Population (persons)

100-Mile Foodshed as part of United States United States 100-Mile Foodshed

10% of the United States’ population lives in the 100-Mile Foodshed The 100-Mile Foodshed has less than 1% of the nation’s land area The 100-Mile Foodshed has a population density 12X greater than the nation’s density.

This is the most dense part of the United States.

Less than 1% of the United States’ agricultural land is within the 100-Mile Foodshed However, over 2% of the nation’s farms are within the 100-Mile foodshed And over 2% of the nation’s value of agricultural products is produced within the 100-Mile Foodshed

Agricultural Land Base: Total Land in Farms in the 100-Mile Foodshed

4,688,500 5,024,030 4,660,230 4,643,522 4,717,016

4,000,000 4,200,000 4,400,000 4,600,000 4,800,000 5,000,000 5,200,000 1987 1992 1997 2002 2007

Acres -

Agricultural Land Base: Total Land in Farms in the United States

Cropland 73% Pasture 7% Woodland 14% Other Uses 6%

2007 Land in Farms

Agricultural Land Base: Types of Farmland

Cropland 45% Pasture 44% Woodland 8% Other Uses 3%

2007 Land in Farms United States 100-Mile Foodshed

Agricultural Land Base: Number of Farms in the 100-Mile Foodshed

40,926 36,991 37,067 43,237 45,673

10,000 20,000 30,000 40,000 50,000 1987 1992 1997 2002 2007

Agricultural Land Base: Number of Farms in the United States

2,087,759 1,925,300 2,215,876 2,128,982 2,204,792

500,000 1,000,000 1,500,000 2,000,000 2,500,000 1987 1992 1997 2002 2007

5,000 10,000 15,000 20,000 1 to 9 acres 10 to 49 acres 50 to 179 acres 180 to 499 acres 500 to 999 acres 1,000 acres or more Acres/Farm Farms 2002 2007

Agricultural Land Base: Farms by Size in the 100-Mile Foodshed

Agricultural Land Base: Farms by Size in the United States

100,000 200,000 300,000 400,000 500,000 600,000 700,000 1 to 9 acres 10 to 49 acres 50 to 179 acres 180 to 499 acres 500 to 999 acres 1,000 acres or more

Acres/Farm Farms

2002 2007

Agricultural Land Base: Types of Crops on Cropland, 2007

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100-Mile Foodshed United States Total Acres Other Unharvested Berries Fruit Vegetables/Melons/Potatoes Field Crops

70% 52% 4% 1%

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PART 3: Agricultural Resources Assessment

• Agricultural Land Base
• Agriculture Industry

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PART 3: Agricultural Resources Assessment

• Agricultural Land Base
• Agriculture Industry

Agriculture Industry: Age of Principal Operators

52.9 53.4 55.2 54.0 55.3 57.1 50.0 51.0 52.0 53.0 54.0 55.0 56.0 57.0 58.0 1997 2002 2007

Years

100-Mile Foodshed United States

Agriculture Industry: Farm Labor

30.2% $614,990,000 $800,735,000 Payroll

• 4.9%

76,988 73,242 Farm labor (workers)

• 8.9%

11,837 10,786 Farms that hire labor (farms) % Change 2002 2007 100-Mile Total 17.8% $18,568,446,000 $21,877,661,000 Payroll

• 13.2%

3,036,470 2,636,509 Farm labor (workers)

• 13.0%

554,434 482,186 Farms that hire labor (farms) % Change 2002 2007 United States

$4,151,775,000 $3,560,149,000 $4,538,841,000 $4,698,799,000 $6,732,916,000 $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 $8,000,000,000 1987 1992 1997 2002 2007

Agriculture Industry: Market Value of Products Sold, 100-Mile Foodshed

Agriculture Industry: Market Value of Products Sold, United States

$162,608,334,000 $196,864,649,000 $200,646,355,000 $297,220,491,000 $136,048,516,000 $0 $50,000,000,000 $100,000,000,000 $150,000,000,000 $200,000,000,000 $250,000,000,000 $300,000,000,000 $350,000,000,000 1987 1992 1997 2002 2007

Agriculture Industry: Value of Livestock and Crop Sales

2007 Market Value of Agricultural Products Sold 2007 Market Value of Agricultural Products Sold United States 100-Mile Foodshed

48% 52% 55% 45% Value of crops including nursery and greenhouse Value of livestock, poultry, and their products

Agriculture Industry:

Market Value of Products Sold, Top Counties in 100-Mile Foodshed

2% 3% 3% 3% 3% 4% 5% 8% 13% 16% % of 100-Mile Total Market Value 455 372 366 289 281 206 108 49 28 18 Rank in the US

• f 3,076

counties $166,732,000 424 Dorchester, MD 10 $186,039,000 574 Caroline, MD 9 $188,390,000 825 Kent, DE 8 $212,634,000 2,370 York, PA 7 $216,994,000 1,289 Adams, PA 6 $257,097,000 1,193 Lebanon, PA 5 $367,840,000 1,980 Berks, PA 4 $553,290,000 1,733 Chester, PA 3 $848,942,000 1,374 Sussex, DE 2 $1,072,151,000 5,462 Lancaster, PA 1 Market value of agricultural products sold Number of Farms

$86,990 $112,237 $122,450 $108,675 $147,416 $65,165 $84,459 $102,970 $94,245 $134,807 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 1987 1992 1997 2002 2007 Average per Farm

100-Mile Foodshed United States

Agriculture Industry: Market Value of Products Sold, Average per Farm

Agriculture Industry: Farms by Value of Sales, 100-Mile Foodshed

5,000 10,000 15,000 20,000 Less than $2500 $2,500 to $4,999 $5,000 to $9,999 $10,000 to $24,999 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $499,999 $500,000 or more

Value of Products Sold/Year Number of Farms

2002 2007

Agriculture Industry: Farms by Value of Sales, United States

200,000 400,000 600,000 800,000 1,000,000 Less than $2500 $2,500 to $4,999 $5,000 to $9,999 $10,000 to $24,999 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $499,999 $500,000 or more

Value of Products Sold/Year

Number of Farms 2002 2007

Agriculture Industry: Value of Sales by Commodity Group, 100-Mile Foodshed

$0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 $1,800,000,000 $2,000,000,000 Fruits, tree nuts, and Vegetables, melon, Aquaculture Cattle and Calves Hogs and pigs Milk and

• ther dairy

Other animals and Poultry and eggs Sheep, goats, and Grains,

• ilseeds, dry

Other crops and hay Cotton and cottonseed Cut Christmas Horses, ponies, Nursery, greenhouse, Tobacco Fruits, Vegetables and Nuts Animal Products Field Crops Non Food Items

2007 2002

Agriculture Industry: Value of Sales by Commodity Group, United States

$0 $10,000,000,000 $20,000,000,000 $30,000,000,000 $40,000,000,000 $50,000,000,000 $60,000,000,000 $70,000,000,000 $80,000,000,000 Fruits, tree nuts, and Vegetables, melon, Aquaculture Cattle and Calves Hogs and pigs Milk and

• ther dairy

Other animals and Poultry and eggs Sheep, goats, and Grains,

• ilseeds, dry

Other crops and hay Cotton and cottonseed Cut Christmas Horses, ponies, Nursery, greenhouse, Tobacco Fruits, Vegetables and Nuts Animal Products Field Crops Non Food Items

2007 2002

Agriculture Industry: Types of Vegetables in the 100-Mile Foodshed

10,000 20,000 30,000 40,000 Watermelons Tomatoes in the Open Sweet Corn Squash, All Snap Beans Pumpkins Potatoes Green Peas Green Lima Beans Cucumbers Bell Peppers All Other Vegetables

A cres

2002 2007

Agriculture Industry: Vegetables Grown for Fresh Market or Processing in the 100-Mile Foodshed – Top Counties

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Kent, DE Sussex, DE Caroline, MD Dorchester, MD Atlantic, NJ Cumberland, NJ Gloucester, NJ Salem, NJ Orange, NY Lancaster, PA

Top 10 Counties Harvested Acres

Vegetable Acres Harvested for Processing Vegetable Acres Harvested for Fresh Market

58% Fresh Market, 44% sold for processing in the 100-Mile Foodshed

Agriculture Industry: Types of Farm Practices – Direct Sales

49.1% $812,204,000 0.4% $1,211,270,000 United States 54.6% $61,716,000 1.4% $95,408,000

100-Mile Foodshed

% Increase (2002 to 2007) 2002 Sales % of All Farms Sales 2007 Sales

Value of Agricultural Products Sold Directly to Consumer

$3,315,000 Hunterdon, NJ $4,010,000 York, PA $4,963,000 Bucks, PA $5,424,000 Orange, NY $9,220,000 Lancaster, PA Most Direct Sales in 2007 10%

Westchester, NY

11% Carbon, PA 11% Morris, NJ 15% Monroe, PA 17% Mercer, NJ Direct Sales as Part of Total Ag Sales 304% Monroe, PA 372% Mercer, NJ 383% Caroline, MD 762% Carbon, PA 989% Atlantic, NJ Biggest Increase (2002 - 2007)

• 13%

Howard, MD

• 27%

Dauphin, PA

• 41%

Cape May, NJ

• 52%

New Castle, DE

• 70%

Burlington, NJ Biggest Decrease (2002 - 2007)

Agriculture Industry: Types of Farm Practices – CSAs

12,549 Total United States 413 North Carolina 424 Ohio 437 Wisconsin 437 Washington 450 Missouri 463 Michigan 487 Iowa 544 Kentucky 883 Texas 953 California CSA Farms Top 10 States 379 Total 100-Mile Foodshed 11 Sussex, NJ 12 Warren, NJ 12 Hunterdon, NJ 15 Cumberland, PA 16 Bucks, PA 18 Berks, PA 19 Baltimore, MD 20 Chester, PA 20 Carroll, MD 47 Lancaster, PA CSA Farms Top 10 Foodshed Counties

The 100-Mile Foodshed has 2% of the country’s farms and 3% of the country’s CSAs

Agriculture Industry: Types of Farm Practices – Organic Production

50% 26% 24% 32% 13% 55%

Harvested Acres Converting/Transitioning Acres Other Acres (ex. Pastureland)

Organic Acres Organic Acres United States 100-Mile Foodshed

More than 3% of all Organic Farms

CONCLUSIONS

Agriculture and other land uses (and different types of agriculture) compete for land A significant portion of farmers are transitioning

• ver to higher value products

There is potential for even more direct sales The 100-Mile Foodshed is slightly ahead of US agriculture’s curve

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PART 4: The Food Economy

• What We Eat
• How we spend our food dollars
• How important is food to the regional economy

Although the agricultural analysis looked at the 100-mile foodshed, our focus for the food economy is more narrow and we are primarily looking at the Philadelphia Metropolitan Statistical Area (or MSA). However, when data is not available on the MSA level, we will look at the three states of Pennsylvania, New Jersey, and Delaware.

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PART 4: The Food Economy

• What We Eat
• How we spend our food dollars
• How important is food to the regional economy

86 5% 139 9% 243 15% 193 12% 282 17% 676 42%

Added fats & oils Added sugars & sweeteners Grains Meat, eggs, & nuts Milk & milk products Fruits & vegetables

What We Eat: Per Capita Food Availability, pounds

Source: USDA, ERS, 2008

2006 United States

Total: 1,619 pounds

Data on food consumption is only available on the national level, and it’s measured by food availability, which is used as a proxy for actual food consumption. In 2006, the average American ate 1,619 pounds of food a year. The largest type of food in terms of weight was fruits and vegetables at 676 pounds, followed by milk and milk products.

200 400 600 800 1,000 1,200 1,400 1,600 1,800 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 Pounds Added fats & oils Added sugars & sweeteners Grains Meat, eggs, & nuts Milk & milk products Fruits & vegetables

What We Eat: Food Consumption Trends

Source: USDA, ERS, 2008

Americans ate more pounds of nearly every category of food in 2006 than they did in 1970 (which is the earliest year we have complete information for). In particular, the amount of added fats & oils increased by more than half during this period. However, Americans consumed 18% less milk & milk products in 2006 than they did in 1970. Again, though, this measures the availability of food and not necessarily actual consumption.

21 12% 28 15% 22 12% 25 14% 8 5% 51 28% 24 14%

Milk Tea Coffee Bottled water Soda Juice Alcohol

Source: USDA, ERS, 2008

What We Eat: Per Capita Beverage Availability, gallons

2006 United States

Total: 179 gallons

Turning now to beverages, in 2006, the average American drank 179 gallons of beverages per year, not including tap water. The largest category of beverages was carbonated soft drinks, or soda, at 51 gallons per year, followed by bottled water at 28 gallons.

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 Gallons - Milk Tea Coffee Bottled water Soda Fruit juice Fruit juice (concentrate) Alcoholic Beverages

What We Eat: Beverage Consumption Trends

Source: USDA, ERS, 2008

Beverage consumption trends from 1970 to 2006 have changed more dramatically than food trends because of new types of beverages that started being tracked within this time period. In 1970, Americans on average drank 99 gallons of beverages, which increased to 179 gallons in 2006 (again, excluding tap water). The consumption of soda wasn’t tracked until 1980 and it increased from 34 gallons to 51 gallons per capita. Bottled water consumption increased from less than 2 gallons in 1976 to nearly 28 gallons in 2006.

1641 2092 2707 2821 2978 2753 2597 2202 1984 1486 1879 1906 1959 1923 1873 1718 1598 1495 500 1,000 1,500 2,000 2,500 3,000 3,500 2 - 5 6 - 11 12 - 19 20 - 29 30 - 39 40 - 49 50 - 59 60 - 69 70 and

• ver

kcal Males Females

What We Eat: Caloric Intake by Age Group

Source: USDA, ARS, 2008

2005 – 2006, United States

Turning to the nutrients we receive from our food and beverage consumption, the average American consumes 2,157 calories per day. Caloric intake is greatest for women in their twenties, and men in their thirties.

2,000 2,050 2,100 2,150 2,200 2,250 $0 - $24,999 $25,000 - $74,999 $75,000 and higher All Individuals kcal

What We Eat: Caloric Intake by Income Group

2005 – 2006, United States

Source: USDA, ARS, 2008

As household income increases, so does the average daily intake of most nutrients, such as calories…

74 76 78 80 82 84 86 88 $0 - $24,999 $25,000 - $74,999 $75,000 and higher All Individuals grams

What We Eat: Fat Intake by Income Group

2005 – 2006, United States

Source: USDA, ARS, 2008

… and grams of fat.

116 118 120 122 124 126 128 130 132 $0 - $24,999 $25,000 - $74,999 $75,000 and higher All Individuals grams

What We Eat: Sugar Intake by Income Group

Source: USDA, ARS, 2008

2005 – 2006, United States

The opposite is true for the intake of sugar, which decreases as income increases.

What We Eat: Diabetes

Source: CDC, 2008 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Delaware New Jersey Pennsylvania Nationwide (States and DC)

17th 13th 19th

Turning now to some health trends, the three states of Delaware, New Jersey, and Pennsylvania have generally had a higher percentage of people with diabetes than the national average. In 2007, New Jersey, Delaware, and Pennsylvania ranked 13th, 17th, and 19th nationwide for the percentage of the population with diabetes.

What We Eat: Diabetes

Source: CDC, 2009

2005, Ages 20+

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% P h i l a d e l p h i a G l

• u

c e s t e r B u r l i n g t

• n

C a m d e n S a l e m N e w C a s t l e D e l a w a r e B u c k s M e r c e r U n i t e d S t a t e s C e c i l C h e s t e r M

• n

t g

• m

e r y

The counties of the Philadelphia MSA also have a higher incidence of diabetes than the national average. In Philadelphia County alone, 9.7% of adults ages 20 and up had diabetes in 2005.

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2002 2003 2004 2005 2006 2007 Philadelphia Metro Division Camden Metro Division Wilmington Metro Division Nationwide (States and DC)

What We Eat: Obesity

Source: CDC, 2008

In terms of obesity, as measured by having a Body Mass Index (BMI) of over 30, the rate of obesity in the three metropolitan divisions of the Philadelphia MSA was close to the national average of about 26% in 2007. And so although Philadelphia’s been called one of the fattest cities, we’re actually at or slightly below the national average for obesity.

What We Eat: Adults Consuming 5 or more Fruits and Vegetables a day

Source: CDC, 2008 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 2003 2005 2007 Wilmington, DE-MD-NJ Metropolitan Division Philadelphia, PA Metropolitan Division Camden, NJ Metropolitan Division United States (States plus DC)

Nationwide, the percentage of adults eating the recommended daily intake of five servings of fruits and vegetables has increased gradually over the past few years and was over 24% in 2007. Within the Philadelphia MSA, the Philadelphia Metropolitan Division has long surpassed the national average and has been increasing at a higher rate. On the other hand, the percentage of adults eating enough fruits and vegetables in both the Camden and Wilmington Metropolitan Divisions decreased during this time period and were both lower than the national average in 2007.

What We Eat: Households Reporting Food Insecurity

Source: USDA 2008

33rd 0% 2% 4% 6% 8% 10% 12% 1996-98 2002-04 2005-07 Delaware Pennsylvania New Jersey United States 43rd 45th

Food insecure households are those that are uncertain of having, or are unable to acquire, enough food to meet the needs of all their members because they had insufficient money or other resources for food. Over the past ten years, food insecurity has been lower in the tri-state area than in the nation as a whole. However, this equals nearly 800,000 people in the three states who were food insecure between 2005 and 2007.

What We Eat: Population Using SNAP (Food Stamps)

Source: US Census Bureau, USDA FNS, 2009

0% 2% 4% 6% 8% 10% 12% 2000 2002 2004 2006 2008 Delaware New Jersey Pennsylvania United States

DE, NJ, PA: 1.7 M

An estimated one in five Americans participates in at least one USDA food and nutrition assistance program at some point during the year. One of the largest of these programs is Food Stamps, officially known as the Supplemental Nutrition Assistance Program, or SNAP. Between 2000 and 2008, participation in SNAP increased in the tri-state area, following the national trend. In the three states in 2008, over 1.7 million people (over 800,000 households) participated in SNAP. New Jersey was far below average, with just about 5% of the population using food stamps.

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% C h e s t e r M

• n

t g

• m

e r y B u c k s B u r l i n g t

• n

G l

• u

c e s t e r M e r c e r C e c i l S a l e m N e w C a s t l e D e l a w a r e C a m d e n P h i l a d e l p h i a

What We Eat: County Population (%) Using Food Stamps, 2002

Source: US Census Bureau 2002, USDA ERS, 2003

(255,011) (32,990) (27,644) (24,879) (3,149) (4,070) (14,983) (5,892) (8,407) (11,412) (12,148) (6,493)

Total: 409,080

In the Philadelphia MSA (plus Mercer), over 409,000 people participated in SNAP in

• 2002. Within the MSA, the county with the highest percentage of its population

using food stamps was Philadelphia, with over 17% using food stamps, followed by Camden County with 6.5%. This data is from 2002, however, and I’m sure many in this room would attest that these numbers have increased greatly over the past few years.

What We Eat: National School Lunch Program Participants

Source: USDA FNS, 2009

78,045 83,648 85,672 88,351 616,759 629,815 638,688 654,779 669,759 1,086,661 1,121,383 1,136,502 1,141,571 1,144,818 81,032 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Participants - Delaware New Jersey Pennsylvania

The largest USDA nutrition assistance program is the National School Lunch Program, which provides low-cost or free lunches to eligible students. In the three states, about 1.9 million students participated in the National School Lunch Program in 2008, and participation has steadily increased over the past few years.

66

PART 4: The Food Economy

• What We Eat
• How we spend our food dollars
• How important is food to the regional economy

67

PART 4: The Food Economy

• What We Eat
• How we spend our food dollars
• How important is food to the regional economy

How We Spend Our Food Dollars: Household Expenditures, 2006

Source: BLS 2008

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Food Housing Transportation Healthcare, personal insurance, and pensions All other United States Philadelphia MSA

This chart compares household expenditures of the United States to the Philadelphia MSA, shown in green. The Philadelphia MSA spends more on housing than the national average, although it spends less on food, transportation, healthcare, and other expenditures.

8% 7% 13% 13% 6% 6% 10% 10% 20% 18% 44% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% United States Philadelphia Cereals and bakery products Meats, poultry, fish, and eggs Dairy products Fruits and vegetables Other food at home Food away from home

How We Spend Our Food Dollars: Food Expenditures per Household, 2006

Source: BLS 2008

Within food expenditures, the Philadelphia MSA spends roughly the same percentage on different types of food as the national average, although it spends less on “other food at home” and more on “food away from home.”

6% 6% 6% 5% 5% 7% 8% 8% 6% 7% 10% 11% 10% 10% 9% 13% 14% 13% 11% 13% 18% 17% 21% 17% 20% 46% 46% 42% 50% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Philadelphia New York Boston DC Baltimore Dairy products Cereals and bakery products Fruits and vegetables Meats, poultry, fish, and eggs Other food at home Food away from home

How We Spend Our Food Dollars: Food Expenditures per Household by MSAs, 2006

Source: BLS 2008

The major Northeastern MSAs of Philadelphia, New York, Boston, Washington, DC, and Baltimore all spend roughly the same percentages on the different types of food

• expenditures. Washington, DC, spends the highest percentage on food away from

home, New York spends the highest percentage on meat, and Boston spends the highest percentage on other food at home. Philadelphia comes somewhere in the middle in every category.

12% 12% 12% 11% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Philadelphia New York Boston DC Baltimore All Other Housing Transportation Healthcare, personal insurance, and pensions Food

How We Spend Our Food Dollars: Household Expenditures by MSAs, 2006

Source: BLS 2008

The Philadelphia MSA spends approximately 12% of its total annual expenditures

• n food, equal to the national average and all major northeastern MSAs.

$5,600 $7,023 $6,700 $7,533 $6,222 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Philadelphia New York Boston DC Baltimore All Other Housing Transportation Healthcare, personal insurance, and pensions Food

How We Spend Our Food Dollars: Food Dollars per Household by MSAs, 2006

Source: BLS 2008

Although the percentage of food expenditures is roughly the same, the actual amount of expenditures varies greatly due to differences in income and cost of

• living. Philadelphia has a lower cost of living and a lower average household income

than all other major Northeastern MSAs.

How We Spend Our Food Dollars: Total Food Dollars per MSA, 2006-2007

Source: BLS 2008

$16,384,275 $6,259,332 $15,243,200 $19,363,000 $61,212,468 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Philadelphia New York Boston Washington, D.C. Baltimore ($1,000)

The total food dollars spent in each MSA is equal to the annual household expenditures times the total number of households per MSA. With its 2.7 million households, the Philadelphia MSA generates over $15 billion food dollars. The New York MSA, with its 8.7 million households, generates over $61 billion food dollars.

74

PART 4: The Food Economy

• What We Eat
• How we spend our food dollars
• How important is food to the regional economy

75

PART 4: The Food Economy

• What We Eat
• How we spend our food dollars
• How important is food to the regional economy

The Food Economy Sectors

Fishing, hunting, trapping, and ag. support Warehousing and storage (refrigerated, farm product) Food and beverage manufacturing Wholesale trade (grocery, farm product, farm supplies, beverage) Food & beverage stores Eating and drinking places

To measure the impact of the food economy on the overall economy of the region, we identified these six food-related sectors measured by the US Census Bureau in their Economic Census and annual business surveys. The six sectors include… Within these six sectors are 13 sub-sectors, and these make up the food economy that we will be looking at in the following slides.

The Food Economy Sectors

Fishing, hunting, trapping, and ag. support Warehousing and storage Food and beverage manufacturing Wholesale trade Food & beverage stores Eating and drinking places Agricultural production Transportation

Agricultural production and transportation are also key factors in the food economy, but are not included in the following analysis. And this is because agricultural production, which we just heard about from Alison, is measured by the USDA and is not included in the Census Bureau data. Also, transportation is not included because we’re not able to distinguish between food and non-food transportation in the data. So if we combine the first six food economy sectors…

How Important is Food to the Regional Economy: Total Non-Farm Jobs

Source: US Census Bureau 2006

2006

Philadelphia MSA Total: 2.5M

279,045 11% 2,279,996 89%

Food employees Non-food employees

…they equaled 11% of all jobs in the Philadelphia MSA in 2006. And again, this is a very conservative estimate considering that agricultural production, food transportation, and other sectors like food science are not included due to limitations in the Census Bureau data. Now we’re going to look a little more closely at these 279,000 jobs in the food economy.

How Important is Food to the Regional Economy: Total Food-Sector Jobs

Source: US Census Bureau 2006

2006

68,951 25% 21,249 8% 22,154 8% 165,105 58%

Food services & drinking places Food & beverage stores Food & beverage manufacturing Food-related wholesale trade All other

Of those employees in the food economy, over half work in food services and drinking places like bars and restaurants. Another quarter work in food and beverage stores.

How Important is Food to the Regional Economy: Food Services & Drinking Places Employees, Philadelphia MSA

2006

Source: US Census Bureau 2006

80,882 49% 56,890 35% 17,500 11% 7,500 5%

Full-service restaurants Limited-service eating places Special food services Drinking places (alcoholic beverages)

About half of the jobs in food services and drinking places are at full-service restaurants, and 35% are at limited-service eating places like cafes or fast-food.

How Important is Food to the Regional Economy: Food & Beverage Store Employees in Philadelphia MSA

2006

Source: US Census Bureau 2006 4,055 6% 9,531 13% 8,900 12% 50,698 69%

Supermarkets Convenience stores Specialty food stores Beer, wine, & liquor stores

Most employees at food and beverage stores work at supermarkets, followed by specialty food stores and convenience stores.

How Important is Food to the Regional Economy: Total Non-Farm Establishments

Source: US Census Bureau 2006

2006

16,827 11% 132,506 89%

Food establishments Non-food establishments

Looking at the number of establishments now, those six food economy sectors made up 11% of all establishments in the Philadelphia MSA in 2006, the same percentage as jobs. And within those nearly 17,000 establishments, the breakdown between different sectors was very similar to that of employees, with food services and drinking places having the most number of establishments, followed by food and beverage stores.

5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 C a l i f

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i n a ($1,000) Source: US Census Bureau 2002

Food Manufacturing Value Added ($1,000), 2002

How Important is Food to the Regional Economy: Pennsylvania is a Strong Food Manufacturing State

Taking a closer look at just food manufacturing, we found that Pennsylvania has a very strong food manufacturing base. In terms of value added, which is the total sales value minus the cost of production, Pennsylvania is fourth in the United States, after the major food manufacturing states of California, Illinois, and Texas. And although New York state has more food manufacturing establishments, Pennsylvania actually produces more value.

How Important is Food to the Regional Economy: The Agricultural Industry and Food Expenditures

Source: BLS 2008, USDA 2007

$16,438,100,000 2006-2007 Total Household Expenditures on Food and Alcohol Philadelphia MSA + Mercer County $6,732,916,000 2007 Total Sales of Agricultural Products 100-Mile Foodshed

Over $16 billion was spend on food and alcohol in the Philadelphia MSA annually in 2006-2007. Half, over $8 billion was spent on food at home.

CONCLUSIONS

Greater Philadelphia has less buying power than

• ther MSAs in the Northeast

Pennsylvania has a strong food manufacturing base The Food Economy is dependent on population and place

Some of our conclusions regarding the food economy are that Greater Philadelphia has less buying power than other MSAs in the Northeast due to its lower average household income and lower cost of living. On the upside, Pennsylvania has a strong food manufacturing base which produced over $12 billion in value added. Lastly, we found that the food economy is highly dependent on population and place.

Non-Retail Food Economy, 2006

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 N e w Y

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e Establishments Food-related wholesale Food/Bev Mfg Ag Support and Fishing, etc Food-related warehousing

Source: US Census Bureau 2006

The Food Economy is Dependent on Population and Place

This is illustrated here, which shows the number of establishments of the non-retail side of the food economy after taking out food and beverage stores and eating and drinking places. The Philadelphia MSA comes in sixth out of all MSAs in the country, after Miami and San Francisco. Those two MSAs have more food-related wholesalers than Philadelphia, not only because they have ocean-side ports unlike Philadelphia, but also because Florida and California are two of the biggest agricultural states.

NEXT STEPS

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NEXT STEPS

Sub-committee of larger SAC; commit to review document, provide feedback, and help form conclusions

Part 3 Readers (April/May) Part 4 Readers (May/June) Study published August 2009

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PLAN FOR SUSTAINABLE FOOD SYSTEM

SCOPE OF WORK: Envision a sustainable food system Choose indicators that measure sustainability Create a Plan with recommendations to shift those indicators towards sustainability Measure the region’s progress Commence work July 2009

NEXT STEPS

Next Study Advisory Committee meeting on Thursday, 7/30 (TENTATIVE)

What did we learn from the study? Where do we want to go from here? How do we move forward?

QUESTIONS

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ONE MINUTE REPORTS

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F O R M O R E I N F O R M A T I O N

CONTACT: ALISON HASTINGS SENIOR ENVIRONMENTAL PLANNER PHONE: 215.238.2929 EMAIL: AHASTINGS@DVRPC.ORG WWW.DVRPC.ORG/PLANNING/FOOD