A Massive Economic Force Hidden in Plain Sight

Few industries touch as many California families as dairy — yet many don’t realize just how central it is to the state’s economic backbone. According to the newly released 2024 Economic Impact Report by the California Milk Advisory Board and UC Agricultural Issues Center, California’s dairy sector generated $23.2 billion in value-added economic impact last year while supporting over 150,000 jobs statewide.

This makes dairy one of the most powerful economic engines in California agriculture — and one of the most overlooked.

 

More Than 150,000 Jobs Across Farming, Processing, and Supply Chains

Dairy’s job footprint is far larger than just farm labor. The report shows:

• 20,250 direct on-farm jobs
• 54,736 total farm-related jobs when indirect and induced employment are included
• 151,859 statewide jobs supported when processing, transportation, manufacturing, and distribution are added

 

That means the dairy industry creates employment in:

✔ Trucking and logistics
✔ Feed and crop production
✔ Equipment maintenance
✔ Food manufacturing and processing
✔ Packaging, cold storage, and distribution

 

These jobs ripple through the state, keeping rural economies — especially in the Central Valley — stable and thriving.

 

A $23.2 Billion Boost to California’s Economy

California remains the nation’s leading milk producer, responsible for nearly 18% of all U.S. milk. What makes the state unique is the scale of both its dairy farms and its processing plants.

 

The report highlights two major financial impacts:

1. Dairy Farming (Milk Production)

• $9.0 billion in direct economic output
• $18.44 billion total economic contribution when ripple effects are included

2. Dairy Processing (Cheese, Butter, Yogurt, Powders, etc.)

• $29.1 billion direct output
• $69.1 billion in total economic activity when all effects are included

 

When combined, dairy farming and processing contribute $23.2 billion in value added, which represents the industry’s true contribution to California’s Gross State Product.

 

The Heart of the Industry: California’s Central Valley

The San Joaquin Valley remains the epicenter, producing more than 90% of the state’s milk supply. Counties like Tulare, Kings, Kern, Fresno, and Merced are responsible for the majority of dairy output.

 

This regional concentration creates a powerful economic cluster where:

• Milk production
• Processing facilities
• Transportation hubs
• Manufacturing plants

 

…all operate within close proximity — multiplying efficiency and job growth.

 

Why It Matters for the Future of California Agriculture

At a time when many agricultural industries face uncertainty, the dairy sector continues to anchor rural economies, support manufacturing jobs, and provide essential food products for both domestic and global markets.

 

But challenges remain:

• Rising feed costs
• Environmental and regulatory pressures
• Volatile global dairy markets
• Consolidation and shrinking number of dairies

 

California’s dairy sector has historically adapted through innovation — from improved feed efficiency to cutting-edge processing technologies — and continues to evolve as a global leader.

 

The Bottom Line

California’s dairy industry is not just a farm commodity — it is a statewide economic powerhouse, generating billions in value and supporting tens of thousands of families. Whether you’re a grower, processor, policymaker, or ag-focused business, the dairy sector’s impact touches nearly every corner of the state’s economy.

With $23.2 billion in economic activity and more than 150,000 jobs, dairy remains one of California’s most vital and resilient industries.