Study shows $2.5B impact of potatoes on Michigan's economy
A new report released by the Michigan Potato Industry Commission shows the economic benefits the Michigan potato industry has on the state’s economy.
The commission, which shared the results of this report in a news release and webinar, said the state’s potato industry contributes more than $2.5 billion to the state’s gross domestic product and supports 21,700 jobs in the state, generating around $832 million in wages.
“In 2022 alone, this contribution, which stems from both direct and indirect economic activity, includes nearly $1.5 billion in direct economic activity resulting from growing, processing wholesaling and retailing potatoes and potato products,” Ryan Norton, chair of the Michigan Potato Industry Commission and farm manager at Walther Farms in Three Rivers, Mich., said during the webinar. “It also factors an additional $1 billion in indirect activity from the food service industry and through the household consumption of Michigan-grown potatoes.”
The commission said the study found that potatoes are the second-largest specialty crop grown in the state, adding that Michigan produces about 1.9 billion pounds of potatoes for seed, fresh, frozen, dehydrated and processing industries. More than 70% of potatoes grown in Michigan go to the chip industry.
The study says 1 in 4 bags of potato chips in the U.S. contains Michigan-grown potatoes.
“The sales of these potatoes generated more than $246 million [in 2022] alone. This puts Michigan as the eighth-largest state in the nation in terms of potato production and sixth in terms of sales,” Phil Gusmano, vice president of purchasing of Detroit-based Better Made Snack Foods and commissioner on the Michigan Potato Industry Commission, said during the webinar.
Economists at Michigan State University authored the study. The report and its key takeaways can be found at MIPotato.com/NoSmallPotatoes.
Kelly Turner, executive director of the Michigan Potato Industry Commission, said the organization will use the survey results when state delegates travel to Washington, D.C., for the National Potato Council’s advocacy efforts on Capitol Hill at the end of February.
