Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 2.  Role & impact of U.S. livestock industry  International trade influences on animal agriculture industry  Overviews of animal livestock.

Similar presentations

Presentation on theme: "Chapter 2.  Role & impact of U.S. livestock industry  International trade influences on animal agriculture industry  Overviews of animal livestock."— Presentation transcript:

1 Chapter 2

2  Role & impact of U.S. livestock industry  International trade influences on animal agriculture industry  Overviews of animal livestock industries

3  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


5  Cash receipts from livestock products comprise 51% of all agricultural sales  22 states have cash receipts >$2b


7  Refer to table 2.3  Notice animal agriculture is positive – others are negative  Much is driven by cattle hides, beef, fat/tallow, dairy

8  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


10  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

11  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.

12  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

13 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


15  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

16  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



19  Global Perspective Domestication ~5,000 yrs ago Purposes? U.S. herd total ~5m (4 th 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

20 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

21  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

22 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

23 Turkey production has evolved from a primarily seasonal industry to year-round industry Export market became lucrative in 80’s and 90’s

24  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

25  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




29 Increasing pressure from environmental and welfare concerns We’ll cover the various types of production operations in future units

Download ppt "Chapter 2.  Role & impact of U.S. livestock industry  International trade influences on animal agriculture industry  Overviews of animal livestock."

Similar presentations

Ads by Google