Animal Production

NAICS 112
Animal Production

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Industry Summary

The 935,700 animal production operations in the US include farms that raise livestock (such as beef cattle, poultry, sheep, and hogs); farms that employ animals to produce products (such as dairies, egg farms, and apiaries); and animal specialty farms (such as aquaculture (fish farms)).

Environmental Impacts Drive Regulation

Livestock production introduces environmental risks that, if not properly managed, can impact human health.

Rebounding Red Meat Consumption

Red meat's share of the American diet has shifted over time.


Recent Developments

Oct 23, 2026 - USDA Raises Poultry Production Outlook
  • US poultry production is expected to continue to grow through 2027, but producers face different challenges depending on their markets, according to an October USDA Outlook. Broiler production is forecast to rise 3.6% in 2026 to 49.72 billion pounds, supported by strong consumer demand for affordable chicken. However, expanding supplies could put pressure on wholesale prices and producer margins. Egg producers face even steeper pricing challenges as recovering flock sizes boost production. USDA expects average wholesale egg prices to fall 72% in 2026 compared to 2025, potentially squeezing profitability. Turkey producers have a more favorable pricing outlook, with strong demand supporting higher prices. However, renewed outbreaks of highly pathogenic avian influenza (HPAI) pose significant risks. September bird flu outbreaks affected nearly 545,000 commercial turkeys, highlighting the importance of biosecurity measures to prevent costly flock losses and production disruptions.
  • Increased immigration enforcement in Texas, Kansas, and Oklahoma is disrupting meatpacking operations and creating financial challenges for cattle ranchers and farmers, according to a September 25 Associated Press report. Employee absences forced some Kansas meatpacking plants to temporarily close, delaying shipments of thousands of cattle and causing millions of dollars in lost revenue, according to livestock industry groups. Some cattle have been returned to feedlots after processing delays, increasing feeding and transportation costs and raising animal health concerns. Continued disruptions could create bottlenecks in the beef supply chain, making it harder for ranchers to market cattle on schedule and potentially putting downward pressure on cattle prices. Reduced meatpacking capacity could also push consumer beef prices higher, adding to affordability concerns as the US cattle herd remains at its smallest level in 75 years.
  • China is rapidly expanding domestic beef production as wetter conditions in northern regions, government investment, improved cattle genetics, and higher import tariffs reduce reliance on foreign beef, The New York Times reports. China's beef herd has grown by one-third since 2018 to nearly 90 million head, while the government has capped imports and imposed 55% tariffs once country quotas are exceeded to support domestic producers, according to NYT. Although China is expected to remain a major beef importer, its push toward greater self-sufficiency could slow import growth over time, reducing a key export opportunity for US cattle ranchers. Producers that have relied on rising Chinese demand may face increased competition from China's expanding domestic industry and more uncertain export prospects, making other international markets increasingly important for long-term growth.
  • The USDA projects continued growth in US pork exports through 2035, creating a favorable outlook for pork producers. Rising global incomes and an expected weakening of the US dollar are forecast to increase international demand for US pork. US pork exports surpassed chicken exports in 2024 for the first time since 1976 and are expected to maintain that lead through 2035. Export growth will be supported by increased production efficiency, including heavier slaughter weights, larger litters, and expanding hog inventories. In addition, environmental regulations are expected to constrain pork production growth in the European Union, improving the competitive position of US producers globally. The agency projects pork exports to rise from an expected 7.2 billion pounds in 2026 to 7.8 billion pounds by 2035, exceeding the previous record set in 2020.

Industry Revenue

Animal Production

Animal Production — revenue distribution by firm size chart

Industry Structure

Industry size & Structure

The 935,700 livestock operations in the US include 545,800 cattle operations, 21,800 hog and pig farms, 75,600 poultry and egg farms, 79,400 sheep and goat farms, and 23,100 dairy farms.

  • Livestock farms produce about $262 billion in average annual value on 393 million acres. The average livestock operation generates about $280,000 in annual revenue.
  • The US Census Bureau defines a farm as an operation that produces or should have reasonably produced over $1,000 in revenue during a given year, including government payments.
  • About 90% of livestock farms are owned by farm families in which the family owns and/or operates the farm and has done so for generations.
  • More than 268,700 people are hired employees in the livestock industry, but 77% of total livestock labor is family members.
  • Farm operations that generate more than $1 million in revenue account for 79% of livestock production value.
  • Cattle production is the most important agricultural industry in the US, accounting for the largest share of total cash receipts for farm commodities, according to the USDA.

Industry Forecast

Industry Forecast
Animal Production Industry Growth
Animal Production — industry growth forecast chart
Source: Vertical IQ and Inforum

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