Livestock Products & By-Products
A. Products- ruminants and other animals eat feed materials that humans will not
eat and convert these materials into food that humans will eat: meat, eggs, milk,
etc. In addition to food, they also provide other products:
1. Food- meat, milk, cheese, eggs.
2. Clothing- wool, leather from hides.
3. Shelter- tents from hides.
4. Power- work in less developed countries.
5. Recreation- horseback riding, rodeos.
6. Manures can be used as raw materials in methane gas biodigesters. Also
used as fuel in less developed countries.
B. By-Products
1. Wool- from the coat of the animal.
2. Leather- from animal hides.
3. Candy and Chewing Gum- from animal fat.
4. Gelatin- from horns, hooves, bones, and hides.
5. Glue, candles, cosmetics, waxes, soap, lubricants, bushes, etc.- from
horns, hooves, bones, and hides.
6. Animal Feeds- from scrap meat and bones and blood meal.
7. Insulin- used to treat diabetics was produced from livestock pancreas at
one time in history. Today, insulin is produced more through
biotechnology.
8. Heparin- from livestock lungs. Used for blood clotting.
9. Many other medicines used to treat thryroid issues, allergies and
respiratory diseases.
10. Lanolin- from oil produced by skin of sheep.
11. Fertilizer, printer ink, lubricants- from inedible beef fats and proteins.
Economic Impact & Importance
A. Provides use of land and other resources, conserves soil.
B. Helps provide jobs and increases tax base.
C. Economic Importance
1. Income from livestock, poultry and their products is about twice that from
all crops in North Carolina.
2. Income from broilers is about $2.6 billion per year.
3. Income from hogs is about $2.5 billion per year.
4. Income from turkeys is about $775,000 dollars.
5. Income from cattle is about $275,000 per year.
6. North Carolina is near the top nationally in production of hogs, turkeys,
and poultry.
Trends in Animal Agriculture
A. Swine farms are getting fewer and larger.
B. Health concerns have caused an increase in the consumption of poultry.
C. Most poultry farms are contract growers.
D. Most swine farmers grow on contract.
Issues in the Animal Agriculture Industry
A. Animal Welfare- the humane treatment of animals.
1. Most animal producers and researchers believe in animal welfare, support
animal nutrition and oppose cruel treatment of animals.
2. Scientific information should be the basis for decisions, laws and
regulations related to animal welfare.
3. It is difficult to assess animal comfort and well-being because they do not
talk and because there are no universally accepted measures to use.
4. Laws that Protect Animals
i. Animal Welfare Act- sets standards for minimum care and
treatment of animals used for commercial sale, research
transported commercially or exhibited to the public. Originally
passed in 1966, but revised numerous times. Most recent revision
was in 2008.
ii. Health Research Extension Act- passed in 1985. Sets standards for
care of animals used for biomedical and behavioral research.
B. Animal Rights- animals should not be used by humans.
1. Comparison to Animal Welfare
i. Animal Welfare- involves good treatment, whereas animal rights
means animals not used by humans
ii. Animal welfare groups are usually less radical in their activities than
rights groups.
iii. Rights movement supporters are usually vegetarians.
iv. Animal producers and researchers are usually supporters of animal
welfare, but NOT animal rights.
2. Largest animal rights organization is the Humane Society of the United
States.
3. The issue of animal rights and moral issues related to animals such as
livestock and poultry date back thousands of years to the ancient Greeks.
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The Animal Agriculture Process
A. The process for producing and caring for animals varies greatly depending on the
type of animals, location, facilities and overall producer goals.
B. There has been an increase in consumer demand for locally grown and
organically raised products.
1. Consumers have increased their awareness of how agriculture products
are raised and manufactured.
2. The majority of livestock and poultry products are still produced and sold
to commercial corporations who re-distribute them through various outlets
such as grocery stores.
C. In general, producers must decide:
1. Goal of production and purpose of animals.
2. The type of breeding system to use based on how they elect to produce
the animals.
3. How to market the animals.
Beef Cattle Production
A. Types of Beef Cattle Operations- beef cattle producers may specialize in one
type of cattle operation or combine various types.
1. Cow-Calf Producers- a herd of cows are bred each year to produce
calves. These calves are often sold sometime after weaning (6 months to
1 year old animals).
2. Seedstock- also known as purebred breeders. Keeps herds of purebred
breeding animals and provide replacement bulls for cow-calf operations.
These operations focus more specifically on genetic improvements within
a given breed.
3. Cattle Feeders
i. Stocker Operations- purchase calves from a cow-calf producer and
care for them for approximately 5 months (12 months to 17 months
of age).
ii. Feedlot- raises large numbers of animals in a more confined area.
a. Animals are fed to a “finished” market weight and then sent
to be processed between 18-22 months of age.
b. Feedlot animals are purchased from stockers or cow-calf
producers through one of the various types of livestock
markets.
B. Processing Beef Products
1. Feedlots sell animals to packing plants (slaughter houses).
2. Most packing facilities process animals into primal cuts and subprimal
cuts. These products are sold to retailers and foodservice companies.
3. Some packing facilities sell subprimals to meat processors who create
value added products such as pre-cooked items, sandwich meat, etc.
C. The amount of time involved in producing beef cattle is significantly longer
compared to swine and poultry.
D. Most beef cattle are grown independently, not on contracts.
Dairy Cattle Production
A. Dairy cattle production in the United States continues to shift towards larger
herds that allow producers to maximize production and profits.
B. Types of Dairy Cattle Operations
1. Intensive Dairy Production- animals are raised in a more confined setting
such as an open lot or tie stall barn.
2. Pasture Dairy Production- cattle are turned out on pasture continuously or
for portions of the day.
3. Some producers us a combination of both types.
C. Production Cycle of Dairy Cattle
1. Mature cows are milked 2-3 times a day after they give birth and their
lactation cycle begins.
i. Calves are removed from the cow 1-2 days after being born.
a. Male calves are typically used for veal or are raised as
slaughter steers.
b. Heifers are either kept to become replacements or are used
for meat.
c. Replacement heifers are typically raised in feedlot or pasture
settings until they are ready to be moved in with the dairy
herd.
ii. Replacement heifers are bred around 15 months of age and begin
producing milk 9 months later (2 years of age).
2. During the lactation cycle, cows are re-bred.
3. Approximately 60 days before they give birth again, they are “dried off”
(quit producing milk) in preparation for their next calf to born.
4. The average production cycle of dairy cattle is 5-7 years. Animals are then
processed for their meat.
D. Processing Dairy Products
1. Milk is collected into large tanks at the farm and then transported to
processing facilities.
2. The fluid milk (cream and skim) is separated and then re-blended to make
skim, 2%, whole milk, etc.
i. Fluid milk is pasteurized and homogenized.
a. Pasteurization- rapid heating and cooling of milk to remove
harmful bacteria.
b. Homogenization- dispersing fat droplets so the milk stays
uniformly mixed.
ii. The excess fat removed from the fluid milk to make low fat milk
such as skim and 2% is used to make products such as eggnog,
butter, whipping cream, etc.
3. Other dairy products made from fat and butterfat at value added facilities
include ice cream, yogurt and cheese.
Swine Production
A. Most swine are grown through vertical integration contracts.
1. Vertical Integration Definition- two or more steps of production, marketing,
and processing are linked together usually by contract between producers
and feed manufacturers or between producers and processors or include
all three.
2. Vertical Integration Example- a corporation such as Smithfield Foods, Inc.
purchases feeder hogs from a producer and then raises the animals to a
market weight in their company owned finishing house. Then they
transport animals to the slaughter house that is also owned by Smithfield
Foods, Inc.
B. Commercially produced swine are typically raised in confinement type houses.
C. Types of Swine Operations
1. Sow- maintains sows for breeding, gestation and farrowing. Manages
piglets until they are weaned at approximately 21 days.
2. Nursery- manages piglets after they are weaned until approximately 10
weeks or 50lbs.
3. Grow-Finish- manages barrows and gilts until they are ready for market.
4. Farrow-to-Finish- manages a group of breeding sows and maintains
piglets to market weights. Also known as complete sow and litter
operation.
i. Commercial operation will typically house animals in separate
facilities to manage disease.
ii. Typical operation for a small scale producer raising hogs for local
markets.
D. Processing Pork Products
1. Finishing operations send animals to processing facilities. In many cases
the finishing operation and the slaughterhouse are vertically integrated.
1. Pork is processed into primal cuts and subprimal cuts. These products are
sold to retailers and foodservice companies.
2. Some packing facilities sell subprimals to meat processors who create
value added products such as ham, bacon, pre-cooked items, sandwich
meat, etc.
Poultry Production
A. Most poultry in the United States is produced through vertical integration contract
with large commercial operations.
B. Types of Poultry Operations
1. Egg Production- producing eggs for human consumption.
i. Laying hens are typically confined to cages or a floor-pen system.
ii. Eggs are cleaned, graded and packed at the farm.
iii. The laying hens produce eggs for approximately 72 weeks and
then they are then sold for meat once their production cycle is
complete.
iv. Over ½ of laying hens are raised through vertical integration
contracts.
2. Broiler Production- poultry produced for meat consumption.
i. Poultry are fed high quality feed to maximize growth.
ii. Hormones cannot be added according to USDA standards.
iii. A producer will raise several flocks of birds each year.
iv. Broilers are processed into cuts of meat and also value added
products such as sandwich meat, pre-cooked products, etc.
v. Approximately 99% of broilers are raised through vertical
integration contracts.
3. Replacement Pullet Production- raising chickens to replace either egg
production or broiler production operations.
Breeding Livestock Animals
A. Various breeding systems exist due to the various types of livestock operations.
B. The size of the herd, amount of money available and goals of the producer are all
factors that determine the type of system used.
C. Some farms use more than one type of mating system.
D. In general, cattle use all types of breeding systems while swine and poultry tend
to utilize crossbreeding to develop industry owned hybrids.
Types of Breeding Systems
A. Straightbreeding- mating animals of the same breed. Types of straightbreeding
systems:
1. Purebred Breeding- mating registered purebred male and female of the
same breed.
i. Animals are eligible for registry with a purebred association.
ii. Example: Angus x Angus
2. Inbreeding- mating closely related animals. Increased the genetic purity of
the stock produced, but is not used as often by the typical producer. Two
types of inbreeding:
i. Closebreeding- mating animals that are very closely related.
Example: son X mother
ii. Linebreeding- mating animals more distantly related than
closebreeding. Example: cousin to cousin
3. Grading Up- mating purebred males (sires) to grade or unregistered or
crossbred females (dams) to improve the herd.
B. Crossbreeding- mating a male and female of different breeds. Usually results in
improved traits of the offspring which is referred to as hybrid vigor. Example:
Yorkshire boar x Yorkshire – Hampshire sow
1. Crossbreeding Systems Include
i. Terminal sire- replacement females are bred to a sire and all
offspring are sold.
ii. Rotational- uses a two, three or four breeds to rotate between sires
and females. This system requires more intensive management.
Methods of Marketing Animals
A. Terminal Markets- central markets on public stockyards where livestock are
consigned to a commission firm to bargain with purchasers or buyers for a
certain fee.
B. Auction Markets- public bidding with the animals selling to the buyer who bids the
highest.
C. Direct Selling- farmer sells straight to buyer with no middle person or firm
receiving commissions or fees.
D. Electronic Marketing- auctioning online using computers.
E. Futures Market and Hedging- legal document calling for delivery in the future,
locking in a future delivery price.
F. Vertical Integration Contracts- animals are produced as well as marketed as a
part of the vertical integration enterprise.