Texas’ agricultural roots are deep – one in seven Texans is employed in the industry, which has an estimated total impact of about $100 billion on the state’s economy.

As the second-largest agricultural state, Texas leads in the production of cattle and calves, sheep, goats, horses, cotton, hay, wool and mohair. These days, the agriculture industry in Texas is getting a boost from a growing global appetite for the products produced on the Lone Star state’s farms and ranches. Texas is the nation's third-largest exporter of agricultural commodities.

“Ag exports are forecast to increase, especially in the near term, up to about $135.5 billion for the nation,” says Dr. C. Parr Rosson, professor and extension economist with Texas A&M University. Rosson says Texas’ agriculture exports are expected to reach $6.75 billion in fiscal year 2011, compared to $5.45 billion in fiscal 2010.

Mexico is the largest buyer of Texas agricultural exports, spending $3.1 billion last year on products including cotton, wheat, beef, pork, corn and dairy.

The growth in exports both for Texas and the nation is influenced by several factors, Dr. Rosson notes. He cites rising incomes in major markets such as Mexico, China and Canada. A weaker U.S. dollar, down nearly 20 percent since 2008, makes U.S. products less expensive to foreign consumers and more competitive relative to exports from key competitors such as Argentina, Brazil and Canada. Tight supply conditions in other countries and new trade agreements also contribute to the growth in exports for Texas and the United States.

Even with those economic factors, the quality and quantity of the state’s agriculture products available for export is the real key to building global demand. In Texas, export growth has occurred in cotton, grains, meats and dairy products. Aside from Mexico, China is the leading market for Texas cotton followed by Turkey. Texas wheat is in demand in Nigeria and Egypt. Korea and Canada are among the top buyers of Texas beef.

Jobs at Home

Texas’ food manufacturing industry creates approximately 90,000 jobs in the state. Major employers include the giants in the industry: Pilgrim’s Pride, Coca-Cola, Frito-Lay, Tyson, Cargill and JBS Swift & Co. Plants are located from Dallas to Amarillo to Cactus. Other big brands with plants in Texas include Sunny Delight, Hostess and Del Monte.

From 2009 to 2010, the Texas food manufacturing industry saw employment and wages increases, bucking other parts of the nation where the segment was losing ground. A Texas Workforce Commission forecast predicts moderate job growth will continue in the Texas food manufacturing industry through 2012.

In the early months of 2011, some firms in Texas were talking expansion and job creation. Dean Foods, already headquartered in Dallas, is planning to open a new production facility that is expected to bring as many as 100 new jobs by the time it begins operations in the first quarter of 2012. TreeHouse Foods plans to spend $85 million this year in two plants including one in San Antonio that produces salsa.

In another Texas city, a new trend in food manufacturing is creating investment and jobs. The location of Whole Foods Market Inc. in Austin is helping to turn that city into a hub for entrepreneurial food manufacturing. In recent years, Austin brands such as Tito’s Handmade Vodka, The Sticky Toffee Pudding Company and NurturMe baby food have begun to generate a national buzz. Meat and vegetable pie maker Boomerang's is planning to build a processing plant in Austin. Boomerang’s products are pitched as a lean and healthier version of other popular frozen pies.

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Texas' rank among states for total agricultural income

$100 billion

Impact of agriculture on the Texas economy

$6.75 billion

Estimated value for Texas agricultural exports in 2011

90,000

Food production jobs in Texas