THE ECONOMY OF ICE CREAM

With over 50 manufacturing plants in the city, Philadelphia once earned the reputation of being the "Ice Cream Capital of the nation." Most of these companies, however, have left the city, or have gone out of business. Why should people in the Philadelphia region care when we lose such companies?


Because, in Pennsylvania, agriculture is the number one industry, and the largest agricultural industry is dairying, which accounts for 38 percent of all agricultural revenues.

Pennsylvania produces 10.6 billion pounds of milk annually. Pennsylvania also manufactures 66 million gallons of ice cream annually. In general, there is a strong relationship between ice cream manufacturing and milk production, as evidenced by the following table:


MILK PRODUCTION AND RANKINGS COMPARED WITH WHOLE MILK EQUIVALENT OF ICE CREAM PRODUCTION AND RANKINGS - BY STATE IN 1995
State Million lbs of Milk in the State Rank in Milk Production 1000 lbs Whole Milk Equivalent of Milk in the State Rank in Ice Cream Production
AK 11.9 50 3333 48
AL 482 38 228148 20
AR 732 34 67606 36
AZ 2230 17 1836743 48
CA 25327 1 1855852 1
CO 1551 37 218425 22
CT 526 34 374194 15
DE 146 46 1162 50
FL 2381 16 503937 12
GA 1555 24 193277 25
HI 142 47 19676 43
IA 4038 11 797480 4
ID 4210 10138496 30
IL 2545 14 573871 9
IN 2214 18 762500 6
KS 1180 30 72645 35
KY 2020 19 108306 31
LA 905 32 90313 32
MA 448 39 687547 7
MD 1342 28 274730 18
ME 641 36 22000 40
MI 5565 7 507842 11
MN 9442 5 535310 10
MO 2690 13 317438 17
MS 710 35 28414 39
MT 315 44 29076 38
NC 1417 27 483778 13
ND 838 33 20574 38
NE 1095 31 87595 32
NH 326 42 13913 45
NJ 320 43 418039 14
NM 3623 12 418039 14
NV 425 40 22889 36
NY 11643 3 618767 8
OH 4600 9 764892 5
OK 1303 29 178361 29
OR 1677 22 182452 28
PA 10600 4 1037384 2
RI 325 49 9574 47
SC 391 41 1037384 2
SD 1591 23 9729 46
TN 1745 21 222423 21
TX 6113 6 882157 3
UT 1473 26 211025 23
VA 1950 20 270641 19
VT 2538 15 49297 37
WA 5302 8 361956 16
WI 22942 2 209229 24
WV 266 45 17371 44
WY 84.6 48 1386 49

What this table shows is that, in general, a state's ranking in milk production is closely related to its ranking in ice cream production. Pennslvania, for instance, is the fourth largest milk producing state and the second largest ice cream producing state.
One can make the argument that the reason why these two rankings are similar is because ice cream companies benefit from the proximity of dairy farms to their factories. It is equally plausible, however, for dairy farms to benefit from the proximity of large markets such as ice cream manufacturing plants.
How can consumers in Philadelphia and the surrounding counties help? Three of the top 5 milk producing counties in the State - Lancaster, Berks, and Chester - are relatively close to Philadelphia. In 1995, supermarket sales of bulk ice cream and related products totaled 3.8 billion dollars in the Philadelphia metropolitan area, making it the 3rd largest ice cream market in the country. When Philadelphians and their immediate neighbors buy local brands, then the economy of the region, and therefore the State ultimately benefit.
Plus, "Philadelphia Ice Cream" has always been associated with quality, so, when you buy local brands, both you and your community benefit. And when you buy a local brand, consider Chilly Philly, the premium Philadelphia ice cream that contributes 7% of pre-tax profits back into the community.