Olives add to the economy

Details

Published on 02/07/2012 - 2:14 pm

Written by Business Journal staff

Ripe olives give the economy a boost

Central Valley ripe olive growers may have a greater impact on California’s economy than most people realize.

The ripe olive industry yields nearly $493.6 million in annual economic activity – or nearly $1.4 million each day of the year – just from grower spending.

Details of the big-money crop are detailed in a newly released report commissioned by the California Olive Committee and conducted by Dennis H. Tootelian, owner of Tootelian & Associates, Sacramento.

“California is the source for America’s best ripe olives,” said Alexander Ott, California Olive Committee executive director in a release.

The research found that about 3,555 jobs are created by olive growers through business activities and spending in a variety of farming and non-farming sectors. Additionally, more than $135 million goes to wages and salaries for new employment as well as expanded incomes for those already in the labor force.

This results in money reinvested throughout California’s economy to pay for an array of goods and services.

The report states that nearly $14.7 million in tax revenue and other business licenses and fees are generated from the economic activity created by ripe olive growers, amounting to more than $40,000 each day of the year.

The annual impact of California olives is based on an average year that was created by using historical and industrial operating statistics form the 2008 to 2010 production years. Inputs for the study included grower surveys, interviews and industry statistics.