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The Food Animal Industry and Economics

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Presentation on theme: "The Food Animal Industry and Economics"— Presentation transcript:

1 The Food Animal Industry and Economics

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4 Cash Receipts All Agricultural Commodities Top 5 States - Livestock 3.
4. 5. Top 5 States - Livestock 1. 2.

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6 Imports/Exports World Trade Why do we need to import?
All US products Negative number (more imports than exports) US agricultural products Positive number Why do we need to import? Are agricultural imports good for the US farmer?

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9 What Influences Price? Supply and demand
When supply is high relative to demand When supply is low relative to demand How quickly can we change supply as demand changes?

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11 The Beef Industry

12 Cattle Basics Terms Young Mature Male Female – heifer Female – cow
Intact – bull calf Castrated - steer Female – heifer Heifer calf, yearling heifer, 1st calf heifer, heiferette Mature Intact – bull Castrated – steer or stag Female – cow

13 Cattle Basics Species of Cattle Bos indicus –
Bos taurus – developed in more temperate regions (Europe)

14 World Beef Cattle Statistics

15 Beef Consumption Compared to other Protein Sources

16 Why do we allow imports? What are the effects of cattle imports?
Supply vs demand Price decrease What cuts are being imported and exported? Why do we allow imports?

17 Cattle Inventory vs Beef Production

18 Total Cattle & Carcass Beef in The US 1977-2002
U.S. Beef inventory 1977 – 2015 – 90 million U.S. Carcass Beef Production 1977 – 23 billion pounds 2015 – How can this occur?

19 U.S. Beef Production Carcass weight
1975 – 579 lb 2015 – Market age of fed cattle has decreased 15-24 months normally Enhanced Genetics Faster gaining cattle

20 Breeding Systems Crossbreeding- the mating of 2 genetically very different parents. When this mating results in the progeny out performing both parents this is referred to as heterosis Nicking- Line Breeding- mating of related parents Inbreeding- mating of closely related parents

21 Defects caused by inbreeding
Tibial hemimelia (TH) Pulmonary Hypoplasia with Anasarca (PHA) Arthrogryposis Multiplex (AM) Neuropathic Hydrocephalus (NH)

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23 Weaning to Harvest

24 Cow-Calf Production 33 million head of beef cows
Mostly where forage is abundant 16 states each have over 700,000 hd 75% of US total 60% of the 830,000 beef cow operations have less than 50 cows per operation More than 70% of the beef cow inventory is in operations with more than 100 cows Cow numbers fluctuate due to: Drought Land prices

25 Cow-Calf Production

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27 Beef Cow Numbers Top 5 States

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30 Feedlot Cattle Top 5 States (Tie) Kansas & Nebraska (Tie)
Marketings are much higher than cattle on feed How can this be?

31 The Sheep and Goat Industry

32 Sheep Basics Terms Mutton – meat from sheep that is over 1 year old
Young Male Intact – ram/ram lamb Castrated - wether Female – ewe Ewe lamb Mature Intact – ram/buck Castrated – wether or stag Mutton – meat from sheep that is over 1 year old

33 Goat Basics Terms Young Mature Male Female – doe Female –
Intact – buck kid Castrated - wether Female – doe doe kid Mature Intact – Castrated – wether Female –

34 Sheep and Goat Industry
Originated in Europe Important in many regions of the world Provide Fiber, milk, hides, and meat Very useful in developing countries Adapt well to arid regions Handle tough terrain Don’t really compete with cattle Goats graze browse (shrubs) and forbs (broadleaf plants) Cattle – tall grasses and some forbs Sheep - short grasses and some forbs

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36 Sheep and Goats World sheep numbers are at all time highs
1 billion plus U.S. exports small amounts of mutton Mostly from cull ewes U.S. imports lamb from Australia and New Zealand World goat numbers – 924 million Primarily in India and China Followed by Pakistan, Sudan, and Bangladesh Used for meat and milk in many regions

37 U.S. Sheep and Goats 1942 numbers of sheep peaked 2015
56 million 2015 2.7 million Meat Goats Texas (1/1/2010) 720,000 Sheep

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40 U.S. Breeding Ewes Top 5 States California Utah

41 Sheep Production Major decline in sheep numbers in the west
Still produces 80% of US sheep Most sheep are in flocks of <50 sheep Secondary enterprise 40% of the flocks in the west are >50 sheep Within this group: 1/3 of flocks in the West are exclusive sheep producers 2/3 are diversified livestock producers 23% of all sheep born in the Western US are lost before market Predators Weather

42 Types of Sheep Producers
Farm flocks Generally smaller flocks Produce lambs ready for slaughter Range flocks Generally larger flocks Produce feeder lambs

43 Major Sectors Purebred breeder Commercial market lamb producer
Raise seedstock Genetic improvement Sell rams and ewes at a significant premium Record keeping of matings are essential Commercial market lamb producer Produce market ready or feedlot ready lambs 120 lb at 120 days Commercial feedlot operator Some have capacity of 20,000 Increase weight (fat) on lambs prior to slaughter 40-60 days

44 The Swine Industry

45 Swine Basics Terms Farrowing – parturition in pigs
Young Male Intact – boar Boar pig Castrated - barrow Female – gilt Mature Castrated – barrow Female – sow Farrowing – parturition in pigs Parturition – giving birth

46 The Swine Industry 50% are in China
US swine more productive on a per head basis US Exports majority to Japan; Imports majority from Canada

47 U.S. Swine Industry $18 Billion value in 2015 Corn Belt
Produces 70% of the nations swine Pigs are fed corn/soybean meal diets North Carolina and Oklahoma have experienced huge growth. Why?

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49 U.S. Swine Industry Top 5 States North Carolina Indiana

50 Pig Numbers Vs. Pork Production
Figure Pork production versus breeding hog inventory. Source: Livestock Marketing Information Center.

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52 Market Share What problems are associated with increased numbers of large farms? Environmental problems Animal rights concerns

53 Sectors Feeder-pig production Feeder-pig finishing
Produces salable pigs ~40 lb Feeder-pig finishing Purchases pigs and feeds until slaughter Seedstock operations Produce breeding stock Farrow to finish operations These are the growing sector Disease transmission is decreased Economic issues No middle man


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