Related Report

A report by Michael H. Shuman

Summary

What are the potential benefits from localizing the food system in New Mexico? This report, commissioned by the Bioneers’ Dreaming New Mexico Project and underwritten by the McCune Foundation, suggests the opportunities are huge.

A recent report of the New Mexico Climate Change Advisory Group estimated that only about 3% of food grown in state reaches the mouths of in-state consumers. Indeed, of the $2.5 billion received by New Mexican farmers each year, 80% is earned either from exports of dairy products and cattle or from sales of the grains to support these animals. Most of the remaining agricultural products in the state, such as pecans, onions, and chile, are exported as well.

Localization means New Mexicans, while continuing their food-export industries, would consume more of the raw foodstuffs grown or raised in the state. Residents also would purchase more processed foods from local manufacturer, buy more of all kinds of food from local grocery stores, and eat out more selectively in local restaurants.

We calculate, using the IMPLAN input-output model, that were Dreaming New Mexico’s goal of 25% food localization realized by 2020, it could generate $1.4 billion in additional output, $346 million in additional earnings, $44 million in additional business taxes, and more than 10,000 additional jobs. Of these benefits, roughly 17% come from increased farming, 18% from the increased raising of fish, game, and meat, and the rest from value-added food manufacturing, distribution, retail, and restaurants. To put the jobs number in perspective, it’s worth noting that 100% food localization would provide a job to more than half of all New Mexicans unemployed today.

By far, the biggest job-creating opportunity is to create new grocery stores in food deserts in the state and build an in-state distribution infrastructure to service them. Other major opportunities are: raising more chickens and pigs, and processing meat in state; growing fruit and other produce; expanding the state’s nursery industry; increasing the number of bakeries; and expanding food manufacturing industries (particularly for soybean products, healthy snack foods, and pet foods).

Ten percent of food consumption in New Mexico is by institutions, about a third of which is by schools. Selective procurement of local food by government agencies could therefore be a significant driver of food localization.

Achieving 25% food localization by 2020 in New Mexico could prevent the emission of 1.1 million metric tons of carbon into the atmosphere—roughly 1-2% of all emissions in the state. More savings are possible if food localization is accompanied by more efficient distribution systems, with less refrigeration and packaging.

The study provides two dozen recommendations for public and private action, including overhauling the state’s economic-development policies and creating a tax credit for residents who invest in local food businesses.

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