Animal Production

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,000,000 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 a number of risks to the environment that, if not properly managed, can impact human health.

Diets & Red Meat Consumption

Red meat’s portion of the American diet has fluctuated over time.

Industry size & Structure

The average livestock operation generates about $164,000 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.
    • The over 1 million livestock operations in the US include 711,800 cattle operations, 64,800 hog and pig farms, and 164,000 poultry and egg farms.
    • Livestock farms produce about $177 billion in average annual value on over 478 million acres.
    • 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 225,900 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.
                                Industry Forecast
                                Animal Production Industry Growth
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                May 6, 2022 - Herds in Decline
                                • US beef cattle inventory is declining due to ongoing drought conditions in the West and modest feeder cattle prices, Meat + Poultry reported in May. Significant declines were seen in South Dakota, Texas, Missouri, and Montana, according to the US Department of Agriculture’s National Agricultural Statistics Service (NASS). Sow herds also shrank nearly 6% over the last three years, starting with losses sustained in 2018-19. Currently, the USDA is forecasting a 2% decline in US beef and pork for 2022. Although smaller herds and flocks mean growth opportunity is minimal across all protein sectors, chicken may be best positioned for expansion, albeit not to the degree that occurred from 2015 to 2019.
                                • Retail prices of pork and chicken hit record levels in March 2022, according to data from the USDA’s Economic Research Service (ERS). Retail pork prices set a new record high of $4.84 per pound in March, an increase of 16.1% ($0.67) year over year. The retail broiler composite price – defined as the retail value of the composite wholesale value for broilers – also set a record in March at $2.32 per pound, rising 15.5% ($0.31) from last year. Boneless chicken breast also set a record price of $3.87 per pound in the month, up 17.6% ($0.58). Eggs were $2.04 per dozen, 25.9% above a year earlier but well below the record high of $2.97 during the 2014/15 highly pathogenic avian influenza outbreak, according to the ERS. Bird flu is once again threatening commercial poultry flocks. As of late April, H5N1 viruses have been found in US commercial and backyard birds in 29 states, the CDC reported.
                                • A global food crisis is possible due the Russian invasion of Ukraine, according to the US Agency for International Development (USAID). As many as 323 million people globally could become acutely food insecure in 2022 if the conflict is prolonged. European countries are now feeding Ukrainian refugees, and shipments of food from Ukraine and Russia to reliant countries have slowed or stopped. President Biden is considering using emergency food aid funds to purchase food commodities and send them as humanitarian aid to countries in the Middle East and Africa that typically rely on food imports from Russia and Ukraine.
                                • A new study by Kansas State University finds that feeding industrial hemp to cattle can reduce stress and increase the amount of time cattle lie down, which improves rumination (digestion) and reduces inflammation. The study found that industrial hemp with high cannabidiolic acid (CBDA) has a unique absorption and elimination rate and therefore repeated daily doses don’t linger in the blood or meat. Stress in meat animals is associated with toughness, which reduces meat quality and value.
                                • Producers are breathing a sigh of relief after the Federal Motor Carrier Safety Administration extended a waiver from its Hours of Service (HOS) regulation to certain commercial truck drivers, including those transporting livestock and animal feed. The HOS rule limits truckers to 11 hours of driving time and 14 consecutive hours of on-duty time in any 24-hour period and requires prescribed rest periods. The latest extension will run through May 31, 2022. The waiver “provides regulatory relief for commercial motor vehicle operations providing direct assistance in support of emergency relief efforts related to COVID-19,” the extension says.
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