Professional Documents
Culture Documents
Industry
Chapter 2
Value of Animal Agriculture
• 283 million U.S. consumers
– Also provide food to the export market
• Cash Receipts
=Revenue generated from the sale of animal
and animal products
• P.21 Table 2.1
• P. 23 Fig. 2.2
– Iowa Cash Receipts: 7,281,000
Supply and Demand
• Price of animals and animal products
fluctuate
– Daily, weekly or monthly
– Prices are influenced by supply and
demand
• P. 25 Fig. 2.3
Biological Lag Time
• P. 26 Fig. 2.4
Introduction to the U.S.
Beef Industry
Introduction to the Beef
Industry
• Bos indicus
– Developed for tropical climates
• Bos taurus
– Developed for temperate climates
• Globally…
• P. 26 Table 2.4
– India has the highest cattle population
• Consumption is very low
– Japan is large consumer of world beef
Introduction to the U.S.
Beef Industry
• Single largest money
generating Ag commodity
• Animal Ag accounts for 51% of
Ag receipts
– Beef Industry 19%
• Grains
– Modest user of corn products
– Major user of corn by-products
Cow Numbers
Cow Numbers
Production Segments
Cow-Calf Producer
– 33 million head of beef cows
• Fluctuates due to drought, beef prices, and land prices
• Seedstock
– 70,000 breeders, 10 AI companies
– Produce breeding cattle and semen
• Commercial Cow-calf
– 774,630 producers
– Raises calves to 6 to 10 months old (400 - 650
lbs.)
Production Segments
• Stocker/yearling
– Feed cattle for growth prior to finishing in the feedlot
– Also used to grow replacements
– Oklahoma ~ wheat pasture
– Dakotas ~ summer grazing
– 500 - 900 lbs sell to feedlots
• Feedlot
– 44,000 lots becoming highly consolidated
• 1,781 with 1,000+ head
– Purchases animal at 850 lbs
– 1,250-1,300 lbs sold to packer
Production Segments
• Packing
– 706 packers
– “The Big 3” ~ Tyson (IBP), Swift, Excel
– Purchases animal at approximately
1,250-1,300 lbs.
• Retailers
– 250 major grocery chains
Dairy Industry
• World leader in production ( 9 million cows)
– 1% cows but 15% of world production
– 4.6% of human population
• Industry Segments
– Genetics
– Dairy Farms
• Avg size 100 range 30 – 5,000
• 9% account for ½ production
– Heifer Development
– Processing
Introduction to the U.S.
Dairy Industry
Introduction to the U.S.
Dairy Industry
• P. 33 Table 2.8
Dairy Industry
• Genetic Selection
– World leader
• Average Dairy:
– 100 milking cows, 30 dry cows, 30 heifers, and
25 calves
– Sell approximately 4,100 lbs milk/day
• 1.5 million lbs. milk/year
Dairy Industry
P. 42 Fig. 2.18
Poultry Industry
• Vertically Integrated
Considered a minor
51.5 % 48.0 %
species
- eligible for government
assistance
Sheep Industry Trends
Sheep Industry
Products:
Market Lambs: C0
2nd CA
3rd TX
Production Segments
• Seed stock ~
50+ breeds but less than 10 are
prominent
• Commercial ~
Farm flock: 50 head
Average western range 400+ had
per group.
Production Segments
• Specialty ~
1) Lambs for ethnic populations
2) Direct marketing
3) Show lamb industry
• Feeding (Feedlot) ~
Most farm flocks feed what they
produce
Greatest feedlots close to us in CO
Production Segments
• Packing ~
- Iowa Lamb Hawarden IA kills 20% of lambs
- 2 plants in Co,2 plants in TX, 1 in Detroit
- smaller ones in Chicago and east coast
3) Predators
23% lost in Western States - Range flocks
13% lost in Central States - Farm flocks
Introduction to the U.S.
Goat Industry
Goat Industry
Three segments
1) Dairy – growing industry due to milk
demand and specialty cheeses
Goat Industry
Three segments
2) Angora – largest industry in the U.S.
until mid 90’s loss of demand for hair
Goat Industry
Three segments
3) Meat – fastest growing segment of the
industry
Goat Industry
World 746 mil.
4) Seedstock Operation
- Private Producers ~ because of demand for
boar semen have a tougher time selling boars
- Very large PIC, Newsham, Babcock, Danbred
Confinement Operations
Production Timeline
Breeding age 6 mo
Grower/Finishing combined:
- Barns developed to accommodate smaller pigs
- Fed in barns from 120 -150 days
- Birth to Slaughter ~ fast 150 vs. 220 days old
- Market weight ~ 260 lbs
Confinement Operations
Nursery
Confinement Operations
Grower
Confinement Operations
Finishing
Market Prices
Sows IA 11 6 3 4
Market Hogs IA 6 3 5
Million hd 28 1.2 3.5 5.4 4.0
USDA - NASS
Swine Industry Issues
1) Perception
- Smell affect on Environment
- Small farmer vs. Corporation
2) Marketing
- Fewer market outlets especially harder for smaller producers
- Market prices depressed losing money
3) Manure Management
- Need to manage Nitrogen & Phosphorus
- Need more acres
- Public perception to spreading (odor)
Chapter 2: An Overview of The Livestock
Industry
• What influences animal and animal
product prices?
• Understand biological lag time.
• Describe the segments of the beef, sheep,
and swine industry.
• Know the top producing countries of beef,
sheep, and swine.
– where the U. S. is located in production
numbers?
• Know what the top producing states are
for the species discussed.