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The Economic Importance of North Carolina Animal Agriculture Blake Brown and Kelly Zering Department of Agricultural and Resource Economics North Carolina.

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Presentation on theme: "The Economic Importance of North Carolina Animal Agriculture Blake Brown and Kelly Zering Department of Agricultural and Resource Economics North Carolina."— Presentation transcript:

1 The Economic Importance of North Carolina Animal Agriculture Blake Brown and Kelly Zering Department of Agricultural and Resource Economics North Carolina State University

2 Animal Agriculture is a major component of North Carolina Agriculture…and the NC economy

3 Agriculture and Food is an Important Part of the Economy of North Carolina Almost 17% or $71.6 billion of the $425 billion gross state product is contributed by food, fiber, and forestry industries … 638,000 of the states 3.8 million employees Source: Prof. M. Walden, NCSU

4 Source: NC Ag Statistics Yearbook 2011 … and Animal Ag is a Big Part of NC Ag Broilers 27% Turkeys 6.1% Dairy 1.7% Livestock, Poultry and Dairy 2/3 of all NC Farm Receipts Eggs 3.4% Cattle 2.6%

5 Most NC Farms include Livestock and/or Poultry NC had 52,913 farms in 2007 Sales less than $250,000 Source: USDA-NASS

6 Animal Ag Across North Carolina (numbers of livestock) Pigs Cattle Turkeys Broilers Source: NCDA Ag Stats 2011

7 Modern Broiler, Pig, Turkey and Egg Farms Represent Significant Capital Investment and Property Tax Base Average NC farm: 164 $4470 = $733,080, Broiler or turkey enterprise $400,000 to $900,000 and higher Hog enterprise $175,000 to $3.2 million Across NC, more than $1.5 billion in pig buildings, $2.5 Billion in broiler, turkey and layer buildings, …

8 Animal Agriculture supports other industries…and communities

9 Farm Production Supports Large Feed Mills and Poultry and Pork Processing Plants in North Carolina Estimated capacity and investment in feed mills, hatcheries, and processing plants: $ 4.6 Billion

10 Animal Ag Creates Large Local Markets for North Carolina Crops Corn and soybean meal and sometimes wheat are the main ingredients in animal feed. Feed makes up around 70% of the farm cost of animal ag. A rough estimate is that Animal Ag in NC consumes 285 million bushels of corn/wheat and 3.3 million tons of soybean meal each year. These amounts are about 3X typical NC production A major initiative is underway to increase NC grain production to enhance farmer income and reduce reliance on imports

11 Jobs, Jobs, Jobs, …Income, Income, Income, …. Tax Base The poultry sector in NC generates 22,713 direct jobs plus 58,502 indirect jobs. It generates $7 billion in wholesale product sales and $18 billion in economic activity (private study for USDA/R. Ford) The pork sector in NC generates 19,700 direct jobs plus 27,400 indirect jobs. It generates $2.34 billion in value added income (Zering 2010).

12 Animal Ag Includes Many Local Entrepreneurs Serving All Kinds of Markets

13 Exports of NC Agricultural Products ($million) Animal Ag Stimulates Trade

14 Current UN projections indicate that world population could increase by 2.25 billion people from todays levels, reaching 9.15 billion by At the global level, agricultural production and consumption in 2050 are projected to be 60 percent higher than in 2005/07.

15 Animal Agricultural will play a major role in the growing global demand for food

16 Implications of 30% Growth in Global Population and 150% Growth in Global GDP Meat Quantity Demanded increases by 100% by 2050 (e.g. FAO 2006 Livestocks Long Shadow) Feed Grain Quantity Demanded increases by 1 billion tonnes per year by 2030 (2.7 times US corn production) (e.g. FAO 2006 Livestocks Long Shadow)

17 The U.S. is a Major Producer of Meat and Eggs 2011 U.S. Share of Global Production (USDA FAS 2012 and FAO 2011) Broiler Meat20.7% Eggs 8.7% Pigs10.1% Turkeys48.8% U.S. has 12.3% of global crop land area and less than 5% of global population (e.g. FAOSTAT 2011)

18 North Carolina is a Major Producer of Meat and Eggs 2010 NC Share of US Production 2010 NC Share of US Production (NASS /NCDA Ag Statistics) Broilers (Mill.Head) 8.9% Eggs (Value of Prod) 5.0% Pigs (Inventory)13.9% Turkeys12.3% NC has 0.9% of U.S. agricultural land area, 2.38% of U.S. farms, 3.1% of U.S. farm receipts and 3.06% of US population (e.g. NASS /NCDA Ag Statistics and US Census Feb 2011)

19 Technology Plays a Key Role in Global Agriculture. More discovery and innovation is needed to meet the global challenge

20 Current Issue: Drought, Livestock Margins, Food Prices, Ethanol Severe drought has reduced US corn production by 25% since planting with estimates at 10.8 billion bushels nationally. 4.5 billion bushels are projected to be used for ethanol production (WAOB USDA Aug 2012) High feed prices are forcing animal agriculture producers to reduce production (layoffs, bankruptcies) which in turn is increasing food prices: USDA predicts 8% higher meat prices in 2013.

21 Animal Agriculture in North Carolina: is a major component of NC agriculture and a major contributor to our economy

22 Animal Agriculture in North Carolina: is a major component of NC agriculture and a major contributor to our economy supports many industries and jobs…from feed supply to processing final product

23 Animal Agriculture in North Carolina: is a major component of NC agriculture and a major contributor to our economy supports many industries and jobs…from feed supply to processing final product has a global presence and can have a significant role in feeding a growing world

24 How can we ensure that North Carolina Animal Agriculture continues to be a sustainable platform for economic growth and jobs in our communities? Current global trends and food challenges provide great opportunity for North Carolina


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