ROOM AT THE TABLE - Intersight - University at Buffalo
ROOM AT THE TABLE - Intersight - University at Buffalo
ROOM AT THE TABLE - Intersight - University at Buffalo
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SCENARIO 3: INCREASE IN <strong>THE</strong> NUMBER OF FOOD PROCESSING UNITS<br />
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tend to have the highest economic impact on Erie County. For this reason,<br />
we simul<strong>at</strong>e the economic impact of introducing new food processing units<br />
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we simul<strong>at</strong>e a 20 percent increase in the number of food processing units (for<br />
baked goods and pasta). We selected these food processing sectors because<br />
in 2009, Erie County consumers spent on the goods produced by this sectors<br />
from businesses loc<strong>at</strong>ed outside of Erie County, while the multiplier effects<br />
for these sectors are rel<strong>at</strong>ively high. Locallyowned food processing units<br />
are more likely to capture the spending by Erie County residents.<br />
The economic impact result for an increase in food processing is<br />
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healthy and local foods. Estim<strong>at</strong>ed multiplier effects for this scenario with<br />
an increase of manufacturing places (20% of current number) for bakery,<br />
cookie and pasta in Erie County, are $12,132,017 in sales as output with<br />
cre<strong>at</strong>ing 63 jobs in Erie County (See Table 8.5).<br />
Among these multiplier effects, the biggest rippling effects<br />
occurred in labor income, indirect (41.8%) and induced effect (21.8%)<br />
and direct effect (36.3%), while sales brings the smallest rippling effect<br />
proportions, indirect (31.1%) induced effects (15.4%) and direct effects<br />
(53.5%) compared to each other.<br />
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within the region by bringing multiplier effects, and positive effects to<br />
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contributors to the economic vitality both of residents in Erie County and<br />
the County itself with the changes in food system we suggest.<br />
91<br />
Table 8.5 – Estim<strong>at</strong>ed Multiplier Effect of Food<br />
Manufacturing (Bakery, Cookie & Pasta)<br />
Direct Indirect Induced Total<br />
Effect Effect Effect Effect<br />
Employment 27.6 20 15.2 62.8<br />
Labor income ($) 1,065,190 1,225,361 640,079 2,930,630<br />
Output ($) 6,483,251 3,777,010 1,871,757 12,132,017<br />
(Source: IMPLAN, Erie County 2009)
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