Most livestock and grain producers recognize that their industry is vital to the community, province and country, but are they aware of how much they contribute?
British Columbia’s cattle producers weren’t, so they commissioned an economic impact study to quantify their value and give them the numbers to back up their claims.
The results were surprising and the benefits significant, indicating that other livestock and grain producers across Canada might be wise to put some hard numbers on what they bring to the table.
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The B.C. Cattlemen’s Association commissioned the economic impact study to get a clearer picture of exactly where the money generated by the industry is going.
The findings showed that the cattle industry’s total output in that province is $606 million, which is more than 2.5 times what the provincial government uses to determine the value of the industry.
Direct output is estimated to be $351 million, supporting $193 million in indirect outputs and $62 million in induced impacts.
Total nominal gross domestic product generated in the B.C. economy is estimated to be $316 million and the total number of full-time equivalent employee positions is 4,242.
Finally, cattle production in B.C. generated an estimated $52 million in taxation revenue.
The study also found that the cattle industry generates many other economic, social and environmental benefits that aren’t quantifiable but should not be disregarded when calculating the value of livestock production.
For instance, it found that cattle ranchers and feedlots were a major factor in the development and sus-tainability of rural communities. They engage in research and development, promote tourism and mitigate fires.
Their money stays in the community, and they take an active interest in community events and volunteerism.
With hard numbers in hand, cattle and beef producers in B.C. now have more opportunities to present their case to all levels of governments while communicating their value to communities and stakeholders.
“The MNP study was excellent and well received by our members and government, but statistics are just numbers looking for a fight unless you put some meat on the bones and engage folks in understanding that what cattle producers do every day contributes to the economy and social fabric of where they live and work in many ways,” said Kevin Boon, BCCA general manager.
Boon gets to a crucial point for organizations and their members who are considering an economic impact study.
It’s important to ensure that the methodologies for collecting and analyzing information are developed with expertise in both analytics and your industry because without deep industry knowledge, the results might be misleading.
The study provider needs working knowledge of agriculture, farmgate-to-consumer plate, to make the analysis meaningful.
Studies should include an examination of how the agricultural industry, including producers and others in the production chain, participates in the community.
For example, you can direct re-searchers to contact mayors, school principals, community groups and businesspeople to ask them about the impact of your industry in their communities.
By including the community perspective, you can test your data and put statistics into meaningful stories that resonate with stakeholders and decision makers so that they can appreciate the far-reaching benefits that producers bring to a community.
The final report can be viewed at www.cattlemen.bc.ca/docs/mnp_final_economic_impact_report__march_12_2013.pdf.
