Animal Agriculture Economic Analysis: The National Overview United Soybean Board June 2013

Objectives Gather information on and analyze the following: Animal agriculture production, by state and by product Usage of soybean meal in animal agriculture Quantify the economic impact of animal agriculture at the state and national levels 2

Animal Agriculture Database Sources  National Agriculture Statistics Service (NASS)  Census of Agriculture  Bureau of Economic Analysis, Dept. of Commerce Content of Excel files  Quantity and value of production, animal numbers  Soybean meal use  Economic impact: output, earnings, jobs, taxes 3

Most US Animal Agriculture Expanded Between 2002 and 2012 The economic downturn beginning in 2007 impacted production, but production has bounced back. Cattle production is down 2.8% over the period. Pork production is up 22.7%. Broiler production is up 12.4%. Turkey production is up 0.7%. Egg production is up 6.5%. Milk production grew steadily, by 17.8% 4

US Cattle & Calves Production, Cattle production is slowly declining.

US Cattle & Calves Production Shifts,

US Hogs & Pigs Production, Hog and pig output is advancing.

US Hogs & Pigs Production Shifts,

US Broiler Production, Broiler production is still growing.

US Broiler Production Shifts, * 10

US Turkey Production, Turkey output is again increasing slowly but cyclically.

Shifts in Turkey Production,

US Egg Production, Eggs have experienced slow, steady growth.

Shifts in Egg Production,

US Milk Production, Milk production is showing steady growth.

Shifts in Milk Production,

US Output Index, Cattle, Hogs, & Milk 17 All sectors, except cattle, experienced growth in volume.

US Output Index, Broilers, Turkeys, & Eggs 18 All sectors experienced growth in volume.

Animal Agriculture Can Boost State Economies Animal agriculture plays a major role in the economy of several states and is important for nearly all states. The impacts are many:  States benefit from the direct investment and jobs, both at the farm level and at the slaughter, processing, and manufacturing levels  They also benefit from multiplier effects on other sectors Animal agriculture is also the leading source of demand for soybean meal. Growth in output is usually concentrated in a small number of states for each species. 19

Multipliers Estimate Broader Economic Impact Regional Industrial Multiplier System from the Department of Commerce  Output and earnings multipliers = $ of total output and household earnings created by $1 of production in an industry  Employment multiplier = # of jobs per $1 million Four animal agriculture industries are  Beef cattle  Dairy cattle  Poultry and egg  Hogs and pigs/ other 20

Economic Impact of 2012 Animal Agriculture 21 * States in blue contain estimates.

Economic Impact, Continued 22 * States in blue contain estimates.

Impact of Changes in Animal Output, * States in blue contain estimates.

Impact of Changes, Continued 24 * States in blue contain estimates.

Change in Economic Impact,

Change in Wage Earnings,

Change in Number of Jobs,

Change in Income Tax Revenue,

State SBM Use By Segment, 1,000 tons, 2011/12 29 * States in blue contain estimates. States in green are withheld.

State SBM Use, Continued 30 * States in blue contain estimates. States in green are withheld.

Share of National SBM Use By State 31

Oregon 32

Animal Agriculture is Important to Oregon In 2012, Oregon ranked 33 rd in the nation in cash receipts from livestock sales. Oregon ranks 18 th in cattle cash receipts and 19 th in milk cash receipts. Animal agriculture in Oregon consumes modest quantities of soybean meal. 33

Economic Multipliers for Oregon, Every million dollars of livestock product output in Oregon results in $ million in total economic output in the state, Generates $310,000-$470,000 in family income, And is responsible for additional jobs.

Economic Impacts in Oregon 35 Animal agriculture in Oregon represents $3.1 billion in revenues, $538 million in household income, about 22,000 jobs, and yielded an estimated $158 million in income taxes.

Oregon Output Index, Cattle declined but stable. Hogs down 60%. Milk stable from 2004 to 2009, then increased. Broilers estimates are unchanged. Eggs declined by 9%. 36

Oregon Value of Production, 2012 ($1,000) 37

Oregon Cattle & Calves Production 38

39 Oregon Hogs & Pigs Production

Oregon Broilers Production 40

Oregon Eggs Production 41

Oregon Milk Production 42

Oregon: Soybean Meal Use by Segment, 2011/12 43

Oregon: Soybean Meal Use for Feed in