OHFOOD, an acronym for Ohio food, is a sophisticated input-output model. The model is designed specifically to capture the inter-dependencies and linkages among various sectors and industries composing the complex economy of Ohio. The input-output model of Ohio’s economy also maintains substantial detail on the food and agricultural sectors. The interindustry model describes the linkages among various sectors of the economy and is specifically designed to provide estimates of the economic importance of the food and agriculture-related cluster, along with the general manufacturing and service sectors, of the economy. Also, OHFOOD provides several types of economic multipliers for detailed food and agriculture-related sectors of the economy.
This is the first OHFOOD model that is based solely on the North American Industrial Classification System (NAICS). The results provided in this report are not comparable to any previous OHFOOD results because of this change in the classification system.
This documentation provides a succinct analysis of the importance of food and agriculture to the state’s economy, based on the interindustry model. The analysis indicates that for 2002 the food and agricultural cluster of Ohio’s economy contributed 11 percent of the output, added 9 percent to Ohio’s gross state product, accounted for 15 percent of the total employment, and contributed 9 percent of total income.
In 2002, the Ohio economy generated a gross state product (GSP) of $388.2 billion. The food and agricultural cluster’s share of this GSP was $36.0 billion, or $9.27 of each $100 of Ohio GSP. For 2002 the contribution to GSP for the five components of the cluster are $1.6 billion for farm inputs, machinery, and professional services; another $2.3 billion from agricultural production; about $11.6 billion from processing; an additional $13.3 billion from food wholesaling and retailing; and another $6.9 billion in food services.
Of these 5 major components comprising the food and agricultural-related cluster, the food wholesaling and retailing sectors are the largest in terms of contribution to GSP, contributing 37 percent of the total contribution to GSP of $36.0 billion by the entire food and agriculture cluster. The food and forestry-related products are the next largest in terms of GSP, contributing nearly 33 percent of the total GSP of $36.0 billion by the entire food and agriculture cluster. The food service sector is notable for its contribution to employment. This sector accounts for nearly 449,000 jobs, or nearly 45 of every 100 jobs accounted for by the food and agriculture cluster. The entire food and agriculture complex accounted for over one million jobs in Ohio in 2002, or about one of every seven jobs (15 percent) in Ohio.
Keeping the OHFOOD model updated with the latest data available is an on-going task of the Farm Income Enhancement Program and the Agribusiness Research Group within the Department of Agricultural, Environmental, and Development Economics of The Ohio State University. The complete study may be printed from a downloadable pdf file available from the AED Economics Department of The Ohio State University at: http://aede.osu.edu/resources/docs/display.php?cat=21 .