Animal Production

Industry Profile Report

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

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation 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

                                Recent Developments

                                Nov 10, 2022 - Pressure to Eliminate Gestation Crates
                                • The pork industry practice of confining pregnant sows to gestation crates is under attack from animal welfare activists and the broader food industry who say the practice constitutes animal abuse. Gestation crates enclose mother pigs in tight spaces about seven feet by two feet — an area barely larger than the pig's body. Gestation crates for mother pigs have been banned in 10 US states including California, Florida, and Michigan. Nearly 100 companies in the US have also committed to banning the crates, including Aramark, Nestlé, Campbell’s, and Kraft Heinz. The Supreme Court in October heard arguments that California’s Proposition 12 -- defining the minimum amount of space farmers must give to cows, pigs, and chicken -- violates a US law by regulating pig producers and the pig market outside the state. The pork industry argues Prop 12 will force a nationwide overhaul of its practices.
                                • As the number of wild birds and poultry killed or culled due to avian flu in 2022 approaching 2015’s record number, the Centers for Disease Control and Prevention is warning some individuals to protect themselves from bird flu viruses. While the risk to humans from avian flu is low, the CDC is warning people to take preventive measures around infected or potentially infected birds/poultry to prevent the spread of bird flu viruses to themselves or to other birds/poultry and other animals, including pets. Since early 2022, more than 49 million birds in 46 states have either died as a result of bird flu virus infection or have been culled (killed) due to exposure to infected birds, nearing the 50.5 million birds in 21 states that were affected by 2015’s largest bird flu outbreak. CDC has tracked the health of more than 5,190 people with exposures to bird flu virus-infected birds with one case reported.
                                • Pork export volumes to China dropped by more than two-thirds (68%) in the first six months of 2022, The Wall Street Journal reported in September. The plunge in US exports to China – the world’s largest consumer of pork – amid rising prices for hogs domestically is squeezing margins for pork producers Tyson Foods and Seaboard. Meanwhile, demand among US consumers for pork is weakening, while input costs (grain, fuel and other supplies) rise, leading hog farmers to shrink the size of their herds, which raises the price pork processors pay to secure livestock and weighs on their bottom lines, according to WSJ. Pork processor profit margins overall were down an estimated 70% for August compared with a year earlier, according to investment firm Stephens Inc.
                                • Animal producers are responding to growing pressure to decrease sector-wide carbon emissions. As a result, environmental metrics have begun to factor into feed purchasing decisions, along with cost and growth performance, allowing feed manufacturers that emphasize their product’s low-carbon footprint and sustainable ingredient sourcing to charge more, according to Feed Strategy. “This is going to be a monetizable aspect of ingredients in the future,” says professor of aquaculture nutrition Brett Glencross referring to a particular feeds’ sustainability. The challenge facing the feed producers is to provide clear and objective rules and frameworks around the way in which carbon costs and other relevant metrics are measured, and making the data available in a clear and transparent way so that animal producers can make informed decisions. The sustainable animal feed market is projected to be worth$ 58 Billion by 2030, according to InsightAce Analytic.
                                Get A Demo

                                Vertical IQ’s Industry Intelligence Platform

                                See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                Build valuable, lasting relationships by having smarter conversations -
                                check out Vertical IQ today.

                                Request A Demo