Chapter 2

Livestock Industry


Livestock commodities comprise 50% of the total agricultural cash receipts
(ERS/USDA, 2005)
1.
2.
3.
4.
5.
The five leading states in total cash receipts for agriculture are:
California
Texas
Iowa
Nebraska
Illinois

Beef Industry
 Cattle, including domestic water buffalo, contribute food, fiber, fuel to the 5.8 billion people of the world
 In developed countries, cattle normally supply food
 In developing countries beef is a secondary product as draft animal power and milk are the primary products

Top 5 Countries in Beef Production

1.
2.
3.
4.
5.
Cattle Numbers
India
China
US
Brazil
Argentina

1.
2.
3.
4.
5.
Beef Production
US
Brazil
EU-25
China
Argentina

Beef Industry
 Exports
 Brazil
 Australia
 India
27.8%
20.3%
11.4%
 New Zealand 7.7%
 Argentina 7.1%
 Imports
 US
 Russian Federation
 Japan
 EU-25
 Mexico

Beef and Veal Consumption
Country
Argentina
United States
Uruguay
Brazil
Per capita consumption
65.2
42.9
39.3
36.9
Australia 36.3
Sources: USDA -FAS attache reports, official statistics, and results of office research. Population statistics from U.S. Census Bureau, Population Division,
International Programs Center.

Beef Industry
 Production of beef has increased recently with a reduction in cattle numbers
 Average carcass wt increased
 Increased number of cattle per feedlot
 Reduction in market age
 More cross-breeding
 Cattle Production is made up of several segments
 Seedstock producers
 Cow-Calf
 Stocker-Yearling
 Feedlots
 Packers
 Retailers
 Consumers

Beef Inventory

1.
2.
3.
4.
5.
Cattle Inventory
Texas
Kansas
Nebraska
California
Oklahoma

1.
2.
3.
4.
5.
Cattle on Feed
Texas
Nebraska
Kansas
Colorado
Iowa

Which country has had the biggest increase in exports of beef in the last
5 years?
Brazil

Why are imports to Japan from the US lower than previous years?
BSE, traceability to verify BSE controls, age verification, bone chips and political wrangling.

Which country has the most cattle numbers?
Which country produces the most beef?
India
United States

Pounds of beef produced has increased whereas number of cattle has reduced. How has this happened?




Average carcass weight has increased
Increased number of animals through feedlot
Reduction in market age
More cross-breeding

Texas, Nebraska, Kansas,
Colorado, Iowa

Dairy Industry
 Milk products are produced and consumed in most countries of the world
 Cows milk is the most common product but other species are used for milk production
 Buffalo, goat, sheep, camel

World Dairy Cow Numbers and Milk
Production

1.
2.
3.
4.
5.
Cattle Numbers
India
EU-25
Brazil
Russian Federation
United States

1.
2.
3.
4.
5.
Production per cow
United States
Japan
Canada
EU-25
Australia

World Milk Production
 EU-25
 United States
 India
 China
 Russia
1,000 Metric tons
132,300
82,582
39,450
33,800
32,200

Dairy Industry
 Other products produced such as butter, cheese and dried milk products are more likely to be exported than fluid milk.

Dairy Exports by Country

Milk Products
 Butter
 India
 EU-25
 United States
 New Zealand
 Russia
 Cheese
 EU-25
 United States
 Brazil
 Egypt
 Argentina

Milk Products
 Whole Milk Powder
 China
 New Zealand
 Brazil
 Argentina
 Australia
 Non-fat Dry Milk
 United States
 India
 New Zealand
 Australia
 Japan

US Dairy Industry
 The average US dairy has approximately 100 milking cows, 30 dry cows, 30 heifers and 25 calves
 Dairy producers market the milk through cooperatives
 Nearly 60% of the US dairy herd is concentrated in large dairy farms
 These large dairies represent 9% of the farms with milk cows, but are responsible for more than half of the milk production

US Dairy Production
State Production
1 California
2 Wisconsin
37,564 mill lbs
22,866 mill lbs
3 New York 12,078 mill lbs
4 Pennsylvania 10,503 mill lbs
5 Idaho 10,161 mill lbs

United States

Germany, New Zealand,
France

Which three countries produce the most nonfat dry milk?
United States, India, New
Zealand

True or False: Large dairies represent 9% of cattle but produce greater than half of the milk produced.
True

Horse Industry
 Horses were domesticated about 5,000 years ago
 Horses were the last animals to be domesticated.
 Horses were first used as food, then for war, sports and draft purposes.
 There were no horses in North America when Columbus arrived

Countries with the Largest Horse,
Donkey and Mule Numbers
Horses Donkeys Mules
1 China
2 Brazil
1 China
2 Ethiopia
3 Mexico 3 Pakistan
4 United States 4 Mexico
5 Argentina 5 Egypt
1 China
2 Mexico
3 Brazil
4 Columbia
5 Ethiopia

US Horse Industry
 Number of horses in the US reduced drastically after World War I.
 Increased use of motor-powered equipment took the place of horse power.
 The US horse industry generates $25 billion in goods and services annually

States with the Largest Horse
Numbers
1.
2.
3.
4.
5.
Texas
California
Florida
Oklahoma
Illinois

US Horse Industry



The horse industry directly produces goods and services of $25.3 billion and has a total impact of
$112.1 billion on U.S. gross domestic product.
Racing, showing and recreation each contribute more than 25% to the total value of goods and services produced by the industry.
The horse industry has a direct economic effect in the urban areas of $2.8 billion and employs
45,800 FTE employees. In rural areas, the direct economic effect is $22.5 billion and employs
292,700 FTE employees.

US Horse Industry
 How Many People are Involved in the
Industry?
 7.1 million Americans are involved in the industry as horse owners, service providers, employees and volunteers.
 The horse industry is a diverse, broad-based activity with stakeholders including large numbers of recreational and show horse riders, and moderate-income track, show and stable employees and volunteers.

Number of Horses & Participants by Activity
Activity No. of Horses No. of Participants
Racing
Showing
725,000
1,974,000
Recreation 2,970,000
Other* 1,262,000
Total 6,931,000
941,400
3,607,900
4,346,100
1,607,900
7,062,500**
*
Includes farm and ranch work, police work, rodeo and polo
**The sum of participants by activity does not equal the total number of participants because individuals could be counted in more than one activity.

Which country has the largest number of horses, donkeys and mules?
China

What happened to the horse numbers in the US after World War I? Why?
 Reduced
 Increased use of motorpowered equipment

Poultry Industry
 Poultry applies to chickens, turkeys, geese, ducks, pigeons, peafowl, and guineas
 Chickens, ducks and turkeys dominate the world poultry industry
 Chickens originated in Southeast Asia
 Darwin concluded that domestic chickens originated from Red Jungle Fowl

World Poultry Production
 Chicken Production
 United States
 China
 EU -25
 Mexico
 India
 Egg Production
 China
 United States
 Japan
 Turkey Production
 United States
 EU-25
 Brazil
 Canada

Broiler Consumption
 United Arab Emirates
 United States
 Kuwait
 Hong Kong
 Malaysia
60.3
46.3
43.0
38.8
38.3

US Poultry Industry
 Income from the US Poultry industry exceeds $21 billion
 The US industry is primarily in the southeastern US
 The US industry produces 6.9 billion total broilers
 The modern mechanized poultry industry of the US emerged during the late 1950’s

US Poultry Industry
 Egg Production
1.
2.
3.
4.
5.
Ohio
California
Pennsylvania
Iowa
Indiana

US Poultry Industry
 Poultry industry highly integrated
 Many broiler and turkey producers are contracted by large companies to raise birds
 85% of the eggs marketed are from large commercial producers
 Efficiency of production of chicken, turkey and eggs has increased in the last few years

Which country leads the world in chicken and turkey production?
Consumption?
United States
United Arab Emirates

Which area of the United
States has the largest concentration of broiler production?
Southeast – Georgia,
Arkansas, Alabama,
Mississippi, North Carolina

True

Sheep and Goat Industry
 Sheep and goats both originated in
Europe and the cooler portions of Asia.
 Sheep are distinguished from goats by the absence of a beard, less odor and glands on all four feet.
 Sheep and goats are important ruminants in temperate and tropical regions

Sheep and Goat Industry
 Sheep and goats are better adapted than cattle to arid tropics
 Goats graze browse (shrubs) and some forbs while cattle graze tall grasses and some forbs and sheep graze short grasses and some forbs.
 More than 60% of the world sheep numbers are in temperate regions while 80% of the goats are in tropical or subtropical

Top 5 Countries in Sheep
Production

1.
2.
3.
4.
5.
Sheep Numbers
China
Australia
India
Iran
New Zealand

3.
4.
1.
2.
5.
Sheep meat Production
China
EU- 25
Australia
New Zealand
Iran

Top 5 Countries for Goat
Production

1.
2.
3.
4.
5.
Goat Numbers
China
India
Pakistan
Bangladesh
Nigeria

1.
2.
3.
4.
5.
Meat Production
China
Pakistan
India
Nigeria
Bangladesh

US Sheep Industry
 Sheep numbers reached a high in
1942 of 56 million declining to approximately 7 million in 1999
 Cost of production offset increase in price per pound
 Difference in raising techniques
 Midwest and West
Coast farm-flocks
 Western States primarily range-flocks

Major Sheep Producing States
1.
2.
3.
4.
5.
Texas
California
Wyoming
Colorado
South Dakota

Sheep don’t have beards, less odor and glands on all four feet.

Goats graze browse and some forbs whereas cattle graze grasses and some forbs

Which three countries have the highest sheepmeat production?
China, EU-25, Australia

Swine Industry
 Swine are widely distributed throughout the world.
 50% of the world swine production occurs in China
 Swine production in US is more productive on a per head basis

Top 5 Countries in Pork Production

1.
2.
3.
4.
5.
Swine Numbers
China
US
Brazil
Germany
Poland

1.
2.
3.
4.
5.
Pork Production
China
EU – 25
US
Brazil
Russian Federation

World Pork Consumption
1.
2.
3.
4.
5.
Hong Kong
EU-25
China
Taiwan
Romania
65.3
43.9
41.9
41.3
34.6

US Swine Industry
 Swine production in the US is concentrated heavily in the corn Belt

This area produces most of the nation’s corn and soybeans
 During the past 20 years the number of hog farms has significantly decreased.
 The number of hogs raised per farm has increased.

US Swine Industry
 Four primary types of swine operations
 Feeder pig operations
 Feeder pig to finishing operations
 Farrow to Finish operations
 Seedstock operations (including multiplier herds for breeding companies)

Corn Belt

1.
2.
3.
4.
Feeder pig
Feeder to finish
Farrow to finish
Seedstock production

True or False? The US produces more than 50% of the pork in the world.
False
China produces 50% of the world pork.

Hong Kong

Other Animal Industries
 Aquaculture
 Finfish
 Crustaceans
 Mollusks


Global fish production has expanded at such a large rate that the per-capita supply has nearly doubled
Aquaculture produces 26% of the world’s supply of food fish

Aquaculture Production as a Share of Total Marine and Freshwater Fish Harvest, 1984-95

Share of Global Aquaculture Production
Country
China
India
Japan
Indonesia
Thailand
United States
Philippines
Korea, Republic of
Other Countries
% Share of Global Production
57
9
4
2
2
4
3
2
17
Source: Food and Agriculture Organization of the United Nations (FAO), The
State of World Fisheries and Aquaculture, 1996 (FAO, Rome, 1997), p. 12.

Table 1.4.4. Production (mt) by commodity group and APRs (%).
Groups 1984 1989 1995
Freshwater
Fishes
3,557,718 6,855,331 12,727,038
APR
84/89
14.0
APR
90/95
12.0
APR
84/95
12.3
3,446,524 3,415,895 6,812,879 -0.2
15.8
6.4
Aquatic
Plants
Molluscs
Diadromous
Fishes
1,997,002 2,943,729 5,087,068
680,903 932,071 1,388,539
8.1
6.5
11.4
4.0
8.9
6.7
Crustaceans
Marine
Fishes
TOTAL
231,798
209,684
702,292
282,692
1,126,632
573,332
10,123,629 15,132,010 27,715,488
24.8
6.2
8.4
8.1
13.2
12.1
15.5
9.6
9.6

US Aquaculture
 Aquaculture in the United States exceeds $1.09 billion
 Catfish farming is the largest aquaculture activity in the US.
 Mississippi produces about 70% of the US total.
 Trout production is the second largest sector with Idaho accounting for 75% of the production
 Third largest aquaculture sector in the U.S. is the crawfish industry
 Louisiana produces 25-50 million pounds per year

US Aquaculture
 One of the most attractive aspects of fish farming is the feed conversion rate 1.3 lb of feed per lb of gain
 Advantages
 Major market
 US major grain producer
 Disadvantages
 Most farm raised fish are tropical
 Labor costs higher
 Regulations

Types of Aquaculture Production Systems





Pond culture: extensive farming in small shallow ponds
Raceway culture: Traditional farming of salmonids which readily acclimated to the cool waters of the temperate zones and high mountains.
Cage culture: The salmonids have readily adapted to other intensive systems, particularly farming in floating cages. Rainbow trout adapted to saltwater are now cultured by such practices, and two species of Pacific salmon, the silver or coho and king or spring
Ocean ranching: The oceanic waters of the Southern Ocean are rich in natural resources of planktonic organisms ideal for migratory salmonids.
Off-bottom and on-bottom culture of molluscs: The majority of molluscs are produced off-bottom, suspended from floating rafts or longlines. Others are managed on tidal beds.

US Aquaculture

Alternative Species
 Ostrich and Emu
 Both relatively new to the U.S.
 Deer Farming
 many different species
 red deer
 wapiti (elk)
 white tail
 red fallow deer
 Major market in by-products
 Bison

Catfish
Trout
Crawfish

China

Finfish
Crustaceans
Mollusks

What is the largest production of aquaculture species in the world?
Finfish

Arkansas, Louisiana,
Mississippi and Alabama

Ostrich and Emu
Deer – red deer, wapiti, white tail, red fallow deer
Bison