Colorado Benefits Greatly from Potato Production
Informa Economics recently did a study to determine the economic impact of the Colorado potato complex. What they found was truly astonishing. In 2014, the potato industry added $596 million to the state economy through a combined business sales output of $1.17 billion and 3,992 jobs! The potato industry makes up 10% of Colorado’s agricultural and food processing economy.
The Potato Industry Creates Many Colorado Jobs
The potato industry in Colorado affects much more than the farmers who produce them. Many indirectly benefit from potato production. For instance, potato production results in the creation of many jobs. Not only do potato farms and processing plants employ many workers themselves, but jobs are also created indirectly, such as at the transportation companies that are used to transport potatoes. The study found that for every person that works directly in the production of Colorado potatoes, 7.7 jobs are created within the state!
Potato Industry Impact is State-Wide
While job creation is important, the potato industry has an even wider economic impact. The labor income that is earned by those working within the potato industry is spent, further impacting the economy. At every stage of the potato supply chain, value is added in the form of labor income, profit, taxes, etc. that is measured as the Gross Regional Product, or GRP. All these factors were considered when analyzing the overall impact of the potato industry on the Colorado economy. The grand total of $596 million benefits the many people of Colorado, not just those that are directly involved in the industry. Colorado potatoes have a substantial and important impact on the Colorado economy, and play a very important role in our state.
Click here for the full report from informa economics.
