Presentation on theme: "Animal Agriculture Economic Analysis: The National Overview United Soybean Board June 2013."— Presentation transcript:
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, 2002-2012 5 Cattle production is slowly declining.
US Cattle & Calves Production Shifts, 2002-2012 6
US Hogs & Pigs Production, 2002-2012 7 Hog and pig output is advancing.
US Output Index, 2002-2012 Cattle, Hogs, & Milk 17 All sectors, except cattle, experienced growth in volume.
US Output Index, 2002-2012 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, 2002-2012 23 * States in blue contain estimates.
Impact of Changes, Continued 24 * States in blue contain estimates.
Animal Agriculture is Important to Wisconsin In 2012, Wisconsin ranked 6 th in the nation in cash receipts from livestock sales. Wisconsin ranked 2 nd in milk cash receipts with 13% of the value. Wisconsin also ranked 10 th in cattle, 16 th in hogs, and 11 th in turkeys. Animal agriculture in Wisconsin consumes significant quantities of soybean meal. 33
Economic Multipliers for Wisconsin, 2012 34 Every million dollars of livestock product output in Wisconsin results in $1.88-2.58 million in total economic output in the state, Generates $340,000-$460,000 in family income, And is responsible for 13-16 additional jobs.
Economic Impacts in Wisconsin 35 Animal agriculture in Wisconsin represents $15.6 billion in revenues, $2.9 billion in household income, about 111,000 jobs, and yielded an estimated $765 million in income taxes.
Wisconsin Output Index, 2002-2012 Cattle dropped again in 2012. Hogs are steady. Milk is increasing, up over 20%. Broilers are up 49%. Eggs are up 19%. 36
Wisconsin Value of Production, 2012 ($1,000) 37