California’s dairy industry generated $23.2 billion for the state’s gross domestic product in 2024 and supported more than 150,000 jobs, according to a new study from the University of California, Davis.
The research, conducted by UC Davis’ Department of Agricultural and Resource Economics and funded by the California Milk Advisory Board, found that dairy farming and processing produced approximately $87.5 billion in direct, indirect, and induced economic output last year.
“California dairy remains an essential economic engine for the state and a source of livelihood for tens of thousands of families,” said Bob Carroll, CEO of the California Milk Advisory Board. “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.”
Dairy is California’s largest agricultural sector. In Fresno County—the leading farm county in the nation—dairy accounted for nearly half of all farm sales recorded in 2024. Across Fresno, Kings, Madera, and Tulare counties, milk was reported as the top farm commodity last year with a combined value close to $4 billion.
A recent economic impact report presented to the Fresno County Board of Supervisors showed that agriculture in Fresno County had a total economic impact of $21.66 billion in 2023 and supported about 108,000 jobs—roughly one out of every nine jobs in the county.
According to UC Davis researchers, California has led U.S. milk production since 1993 and now produces about 18% of all milk nationwide. Nearly all milk produced within California is processed locally into products such as fluid milk, cheese, butter, whey, milk powders, and ice cream.
The report also found that dairy’s contribution to California’s GDP rose from $22.6 billion in 2023 to $23.2 billion in 2024. The sector supported a total of 151,859 jobs statewide through both farming and processing activities. Farm-level milk value reached $9 billion last year while processed dairy products totaled $29.1 billion.
The study highlighted how dairy supports other sectors including feed production, packaging materials manufacturing, logistics operations such as transportation services, energy providers supplying power needs for production facilities as well as retail businesses selling finished goods.
“Each dollar generated by California dairy ripples through communities—from local feed suppliers and truckers to teachers, retailers, and service providers,” Carroll said. “Dairy is a cornerstone of California’s economy, sustainability leadership, and culture.”
Despite facing market fluctuations along with inflationary pressures and challenges related to H5N1 avian influenza during 2024, the report notes that California’s dairy sector continues efforts toward innovation with increased efficiency measures and greater adoption of renewable energy sources.
