Farm Credit East
Knowledge Exchange Report
Economic Impact of the Cranberry Industry to Massachusetts
May 2023
The cranberry industry makes a major economic contribution to the economy of the Commonwealth of Massachusetts. As our nation’s second largest producer of cranberries, and home for a number of significant cranberry related businesses, this industry creates major economic activity well beyond the nearly 13,0001 acres of cranberry bogs in southeastern Massachusetts. Massachusetts cranberry growers continue to be among the most progressive and efficient producers in the country. The Commonwealth produces 28% of the nation’s cranberries, second only to Wisconsin, and markets both processed and fresh market. There is no other Massachusetts food product which ranks as high in terms of national production in addition to having a significant economic contribution to the state’s economy. Employment in the cranberry industry includes jobs on the farm/bog operations, as well as in sectors that provide services and inputs to producers and processing and marketing entities. Without a strong and robust cranberry production sector, employment in cranberry-related input and processing sectors could decline or move to other states. Because the cranberry industry employs local labor and purchases goods and services from other industries, its economic impact cascades throughout the state economy, resulting in a “multiplier,” or economic stimulus. The overall economic impact of a given sector is comprised of three components. The direct farm or factory-gate sales of that sector is referred to as the direct impact. The spending of businesses on inputs, goods and services from other local firms is referred to as the indirect impact. Finally, the spending of employees of these firms on goods and services within the community is referred to as the induced impact. The total economic impact of each farm, processing and marketing sector is the sum of the direct, indirect and induced impacts of those businesses. The following profile illustrates the cranberry industry’s total economic impact in Massachusetts. It is based on data from a 2023 economic analysis conducted by Farm Credit East. 2022 was a year in which cranberry producers’ total value of production was $73.4 million.2 This $73.4 million in farm-gate value was then analyzed using IMPLAN software to model the economic impact of cranberry production to the local economy. On top of direct farm sales, the cranberry production sector generates $45.5 million in indirect impact and $31.7 million in induced impact for a total of $151 million. It should be noted that while estimating the economic contribution of the cranberry industry to the Commonwealth, this study does not consider the value of non-market benefits, such as open space, climate resilience, wildlife habitat, scenic views and other aesthetic considerations, or the positive impact the industry has on tourism. Much of the state’s production is concentrated in 1 2
USDA NASS Noncitrus Fruits and Nuts: 12,700 acres harvested in 2020. Cranberry Marketing Committee: 1.989 million barrels harvested in 2022. (1 barrel = 100 pounds) Economic Impact of the Cranberry Production in Massachusetts Knowledge Exchange May 2023