Economic Impact of Erath County's Dairy Industry

Abstract

Of the 264 counties in Texas, Erath County boasts the highest dairy production, accounting for 27% of the state’s total milk production.  This study estimates the economic impact of Erath County’s dairy industry at both the county and state levels. Combining primary and secondary data and adjusting for leakages, an input-output model was constructed and the economic impacts assessed using IMPLAN.  Results place the industry’s impact in Erath County at $543 Million, representing 36% of the county’s economy, accounting for 5912 jobs or 31% of all employment in the county.  At the state level, Erath County’s dairy industry amounted to  $772 Million and 10,926 jobs. Much of the core economic impacts were attributed to the hay and pasture, wholesale trade, motor freight transportation, and warehouse sectors.