Unit 1: Overview of the livestock & Poultry industries

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Chapter 2
 Role
& impact of U.S. livestock industry
 International trade influences on animal
agriculture industry
 Overviews of animal livestock industries
 Historically
– most farms very diversified
• How so?
• How is it different today?
 U.S. –
283 million consumers – plus
demand in the international market =
high output demand from U.S. livestock
producers
 Cash
receipts from livestock products
comprise 51% of all agricultural sales
 22 states have cash receipts >$2b
 Refer
to table 2.3
 Notice animal agriculture is positive –
others are negative
 Much is driven by cattle hides, beef,
fat/tallow, dairy
 Volatility
in the market has had
significant impact on farm-gate profits
• Not only U.S. supply/demand dynamics…but
international
• If you are to be profitable long-term – know the
averages for your commodity, and understand
how to ride the highs/lows
 Global Perspective
• Cattle domesticated in Asia & Europe
• Provide: food, fiber, fuel, power
• What is our main use of cattle?
 How about a developing country?
• 30 yr trend increasing cattle numbers
 Greater demand for beef
 Increased export demand
• U.S. - largest producer
• India – most cattle
• Uruguay & Argentina – highest per capita
consumption
 U.S.
• Comprised of producing, processing, consuming
segments
• Currently takes ~30m less head of cattle to
produce same amount of beef produced in the
70’s
 Carcass wt increased
 Increased cattle fed/feedlot
 Market age decreased
 Cross-breeding
 Imported cattle to finish in the U.S.
 Cattle Production
• Three phases:
 Cow/calf – birth to 6-10 mos.
 Stocker-yearling – 600-850 lbs.
 Feedlot – 850+ lbs.
• Average market range – 15-24 mos.
• Cow-Calf Production
 33m head throughout country – most concentrated in
high forage availability areas
 60% of operations have <50 cows
 70% of cattle inventory located on farms >100 cows
 Commercial and seed-stock producers
• Stocker-Yearling Production
 Grown for feedlot finishing programs
 Can take advantage of a variety of feeding situations
that might be cheaper, or even not available all year
• Feedlot Production
 Most fed harvested feeds (only 10-15% are finished
on pasture)
 Typically located near abundance of feed
 Global Perspective
• India leading country in total head (38m)
• U.S. highest total fluid milk production
• Butter, cheese, and dried milk are highest total
exports
 U.S.
• Average U.S. dairy ~ 100 cows, farm 2-300 acres,
raise own forage, market through coops
• Average producer markets ~1.5 m lbs milk/yr,
value ~$200,000
• Average total capital investment $500,000
 70% of cows located on large operations (>100
cows)…2001 data
 U.S. herd ~9m head – 1/3 of herd total 50 yrs ago
 Average production 19,951 lbs/cow
 Global Perspective
• Domestication ~5,000 yrs ago
• Purposes?
• U.S. herd total ~5m (4th in the world), world herd
~55m
 U.S. Perspective
• Rapid decline in the U.S. population coincided
with development of vehicles and power
equipment
• 3.5% of consumer expenditures for recreation
spent in the horse industry
• Horse owners tend to be upper-middle class and
well-educated
• Annual costs for maintaining a horse ranges from
$1000 to $15000 per head
 Average costs:
 Boarding - $150-$250/mo
 Training & riding lessons - $300-$600/mo and $20-$50/hr
 Farrier service - $50-75
• Herd numbers increased steadily in 60’s and
70’s, declined rapidly in the 80’s
 Current herd population on the rise again
 Global Perspective
• China has largest herd, U.S. leads in total
production, Netherlands leader in total per
capita consumption
• Fastest growing source of meat for consumption
 U.S. Perspective
• Income exceeds $21b/yr
• Modernized poultry production began in the
1950’s
• Integration became implemented heavily from
1955-75
• Most poultry now raised on contract basis
• Broiler production increased from 3.7m lbs in
1960 to 36.5m lbs in 1996
• Dramatic increases in egg production
 1880 – 100 eggs/hen/yr
 1950 – 175 eggs/hen/yr
 1986 – 250 eggs/hen/yr
 1997 – 255 eggs/hen/yr
• Majority of egg production from large,
commercial units
• Turkey production has evolved from a primarily
seasonal industry to year-round industry
• Export market became lucrative in 80’s and 90’s
 Global
Perspective
• Originated in Europe and Northern Asia
• Often graze different species of plants than
cattle, and can produce on lesser quality feeds
• World population nearly 1.1b in 2002 – highest
on record
 U.S. Perspective
• Population declined from 56m in 1942 to 6.5m in
2006
• Mortality rates can be high
 Global
Perspective
• 50% of world population in China
 Leader in numbers and production
• U.S. herd is more productive
 U.S. Perspective
• 2005 cash receipts ~$12b
• Majority of production located near the corn belt
 Why?
• Iowa ~25% of U.S. production
• Number of farms greatly declined in last 20 yrs
• Increasing pressure from environmental and
welfare concerns
• We’ll cover the various types of production
operations in future units
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