California’s dairy industry generated $23.2 billion in economic value and supported nearly 152,000 jobs in 2024, according to a new University of California, Davis, analysis commissioned by the California Milk Advisory Board.
“California dairy remains an essential economic engine for the state and a source of livelihood for tens of thousands of families,” said board CEO Bob Carroll. "From family farms to world-class processing facilities, every link in the supply chain helps fuel economic vitality, providing nutritious, sustainable dairy products enjoyed here and around the world.”
The report, prepared by UC Davis agricultural economists William Matthews and Daniel Sumner, found that California dairy farming and processing combined produced $69.1 billion in total economic output in 2024, up from $67.3 billion in 2023, when accounting for direct, indirect and induced economic effects. California remains the nation’s largest milk-producing state, responsible for roughly 18% of total U.S. milk production, with nearly all milk produced in-state also processed in California facilities.
Direct farm milk production was valued at $9 billion in 2024, with ripple effects through feed suppliers, veterinarians, transportation firms, processors and local service industries boosting total economic activity tied to farm production to $18.4 billion. At the processing level, California’s cheese, butter, milk powder and fluid milk manufacturers generated $29.1 billion in direct output, with total economic impacts reaching $69.1 billion after accounting for supply chain and household spending effects.
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Job impacts were similarly significant. Dairy farms directly employed about 20,250 workers in 2024, while processing facilities supported 25,176 direct jobs. When indirect and induced employment is included, the industry supported 151,859 jobs statewide, up from about 148,000 the prior year. Researchers noted that these figures include transportation, packaging, equipment maintenance, retail and other positions that depend on dairy activity.
The report highlighted the industry’s geographic concentration, with more than 90% of California’s milk production occurring in the San Joaquin Valley, led by Tulare, Merced and Stanislaus counties. Smaller but higher-value organic and specialty dairy production continues along the North Coast.
The authors also noted growing pressures on the sector, including volatile milk prices, rising feed and labor costs, and production disruptions tied to the H5N1 avian influenza outbreak in late 2024, which slightly reduced statewide output.
Industry leaders said the findings reinforce dairy’s importance as both an economic engine and a critical link in California’s broader food and agricultural supply chain.
“Each dollar generated by California dairy ripples through communities — from local feed suppliers and truckers to teachers, retailers and service providers,” said Carroll. “Dairy is a cornerstone of California's economy, sustainability leadership and culture.”
