A Tennessee Milk Plant as a Possible Way of Growing the Tennessee Dairy Industry

Based in part on the local foods movement and on concerns about shipping costs and carbon footprints, many food processors are looking to source locally or regionally. Milk-based value-added product processors currently in Tennessee (for example, ice cream manufacturers) might consider sourcing from a possible, new, in-state milk plant. Based on farmer survey data, dairy costs of production for Tennessee as reported by the U.S. Department of Agriculture, and discussions with industry experts, an IMPLAN-based, hybrid input-output model is constructed with a focus on Tennessee milk production and processing. This model is used to draw inferences concerning the possible economic impact of a new milk plant on the state economy.