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 |
10 |
138496 |
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.