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Animal Agriculture: Critical to Your Success
It’s Time to Support Your Best Customers
© 2012 Illinois Soybean Association
Importance of Animal Agriculture: Demand
• Per capita meat consumption continues to expand worldwide, as well as in the U.S.
• Resulting in growing demand for grain and protein feeds.
Importance of Animal Agriculture: Exports• Since 1990, meat exports have grown 25% per year• The U.S. has captured 30% of new expanded export markets
Importance of Animal Agriculture:What it means to Illinois
Is Illinois capitalizing on these opportunities by encouraging growth of animal agriculture in our state?
YES NO
What Animal Agriculture Means to Illinois Soybean Growers
• Illinois is a leading producer of soybeans, ranking second in the nation for soybean production.
416Million Bushels
What Animal Agriculture Means to Illinois Soybean Growers
• About half of the Illinois soybean crop is exported• The other half is destined mostly for livestock as soybean meal
Livestock Producers AreYour No. 1 Customer
What Animal Agriculture Means to Illinois Soybean Growers
Who are the leading users of soybean meal?
Are We Keeping Up?• Illinois hog numbers have grown at half the rate of the
national average.
Source: National Agricultural Statistics Service, Illinois Annual Statistics Bulletin
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009-25%
-20%
-15%
-10%
-5%
0%
5%
10%
Cattle and Calves Hogs Sheep and Lambs Dairy Cows
YearCh
ange
fro
m b
ase
year
in t
he
nu
mb
er o
f liv
esto
ck (
%)
Illinois Livestock Index (base year 1999)
Animal Agriculture: Critical to Your Success
Animal agriculture contributes to the state’s economy:
Output$4.5 billion in revenues Jobs
24,236 jobs
Taxes$189 million in income taxes
$246 million in property taxes
Hog51%
Poultry7%
Beef26%
Dairy14%
Others2%
Source: National Agricultural Statistics Service, Illinois Annual
Bulletin 2009 and authors’ calculations
Distribution of Total Output by Species in Illinois in 2009
Total direct economic output
Total generated state taxes
$546.8 Million
Direct Economic Output of the Illinois Livestock Industry
$1.9 Billion
Source: Federal Highway Administration, 2009; Illinois Revenue, 2009; IMPLAN, 2009; National Agricultural Statistics Service, 2009; and Goldsmith and Wang 2011.
Animal Agriculture: Critical to Your Success
• When livestock production is combined with meat and dairy processing, the entire complex produces
$27 billion of total impact5% of the state’s economy99,000 jobs
Animal Agriculture: Critical to Your Success
Every $1 million of livestock product output creates:
Every $1 million of livestock product output in Illinois creates:
$2.4 to $2.9 million in total
economic output
$390,000 to $450,000 in family
income
22 additional jobs
Animal Agriculture: Critical to Your Success
Illinois livestock industry output multiplier= 1.88
Source: National Agricultural Statistics Service, Illinois Annual Statistics Bulletin, Bureau of Economic Analysis
19951997
19992001
20032005
20072009
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.0
0.5
1.0
1.5
2.0
2.5
% of GSP Livestock Gross Receipts
% o
f G
SP
$ b
illio
ns
Illinois Gross Livestock Receipts as a Percentage of the Gross State Product (1999-2009)
Animal Agriculture: Critical to Your Success
• The livestock industry continues to serve as an economic engine in both rural and urban areas of the state.
• It provides real growth for an overall declining Illinois economy.
Animal Agriculture: Critical to Your Success
We’re All In This Together• Livestock producers are your No. 1 customer.• We have a significant stake in animal agriculture
in Illinois.
We’re All In This Together
• Social Impact: Livestock producers are your neighbors.
• Economic Impact: If livestock production fails to grow, it will have a negative effect on prices.– Lower demand for Illinois
soybean meal– Fewer local livestock customers– Higher transportation costs
Think About It• Let’s work together to build and support a
thriving, vital animal agriculture industry in Illinois – it’s the right choice for the future.– Be informed– Share information– Help expand animal agriculture
Thank You
© 2012 Illinois Soybean Association