Lecture 3- Chpt 2-Overview of the Livestock Industry

8/14/2019 Lecture 3- Chpt 2-Overview of the Livestock Industry

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Overview of the LivestockIndustry

Chapter 2


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Value of Animal Agriculture

283 million U.S. consumers Also provide food to the export market

Cash Receipts

=Revenue generated from the sale of animaland animal products

P.21 Table 2.1 P. 23 Fig. 2.2

Iowa Cash Receipts: 7,281,000


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Supply and Demand

Price of animals and animal productsfluctuate Daily, weekly or monthly Prices are influenced by supply and

demand

P. 25 Fig. 2.3


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Biological Lag Time

P. 26 Fig. 2.4


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Introduction to the U.S.Beef Industry


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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 Beef Industry


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Introduction to the U.S.Beef Industry

Single largest moneygenerating Ag commodity

Animal Ag accounts for 51% of Ag receipts Beef Industry 19%

Gross Income $35 Billion 31 states over 10,000 operations

Produces 20% of the World Supply


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Geographic Location

Cow calf operations Grass states

Plains, Cornbelt, and Southeast

Feedlot operations Texas panhandle, Central Plains states 7 state area


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Feedlot Location


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Environmentally Friendly

Single largest user of grass lands 1.2 billion acres ~ 2/3 for grazing Western Plains, Cornbelt, and Southeast

Grains

Modest user of corn products Major user of corn by-products


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Cow Numbers


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Production SegmentsCow-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.)


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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


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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


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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 production

Heifer Development

Processing


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Introduction to the U.S.Dairy Industry


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Introduction to the U.S.Dairy Industry

P. 33 Table 2.8


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Dairy Industry

Genetic Selection World leader

U.S. Rankings: Number of Dairy Cows1. California 1.77 Million2. Wisconsin 1.24 Million

3. New York 652,0004. Pennsylvania 558,0005. Idaho 473,000

Geographic's changing


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Dairy Industry

US Rankings: Milk ProductionAnnually1. California 38.3 Million2. Wisconsin 23.4 Million3. New York 12 Million4. Pennsylvania 10.7 Million5. Minnesota 8.4 Million


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Family milk cow to large dairies highly productive, specialized farms Dairy cow herd size varies from 30 to 5,000

cows

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


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70 % farms are large-scale (at least100 cows)

Today Approximately 1/3 less cows than 50 years

ago Average cow produces 19,951 lbs.

milk/year P. 36 Fig. 2.15

Dairy Industry


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Milk Consumption

Beverage Market % shareMilk 11%Soft drinks 29%Coffee 9%

Beer 12%Bottled Water 11%

Factors Affecting Consumption- Health concerns- Not convenient outside of the home- Not modern- Considered for kids


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Introduction to the U.S. HorseIndustry


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Horse Industry

Modern horse was introduced to the Americas bythe Spaniards and colonists.

Past: horses used for work

Present: horses are used for recreational purposes

World Horse, Donkey and Mule Numbers P. 37 Table 2.10


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Introduction to the U.S.Poultry Industry


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Poultry Industry

P. 42 Fig. 2.18


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Poultry Industry

Vertically Integrated

Main segments of poultry industry: Broilers $13.9 Billion Eggs $4.3 Billion Turkeys $2.8 Billion


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Introduction to the U.S.Sheep Industry


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Sheep Industry

Importance World~ very high

1.1 Billion (2002)

U.S. ~ very low 6.5 Million (2006)

P. 44 Table 2.15 Leading in Numbers and Production

1.China2.Australia


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Sheep Industry

Percent of total farmrevenue:

Considered a minorspecies- eligible for government

assistance

51.5 %

.35% sheep

48.0 %


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Sheep Industry Trends


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Sheep Industry

Products:

1) Meat ~ per capita consumption in US is1 lbs vs. 50+ lbs in Australia/New Zealand

2) Wool ~ The value of wool has droppeddramatically in the last 20 years due to cotton

and other textiles becoming more adapted totrends in the industry.


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Sheep Industry

U.S. Rankings1 st SD IA

Ewes: TX 4 th 8 th

2nd

WY3 rd CA

Market Lambs: C02 nd CA3 rd TX


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Production Segments

Seed stock ~50+ breeds but less than 10 are

prominent

Commercial ~Farm flock: 50 headAverage western range 400+ had

per group.


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Production Segments Specialty ~

1) Lambs for ethnic populations2) Direct marketing3) Show lamb industry

Feeding (Feedlot) ~Most farm flocks feed what they

produceGreatest feedlots close to us in CO


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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

Most plants sell carcasses instead of boxed likebeef industry.

Trend to sell boxed lamb


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Production Timeline

Farm Flock RangeBreeding (5mo.) Aug-Oct Dec - JanBirth Jan-Mar May - June

Birth weight: 12 lbs Avg.

Weaning Age60-90 d 100-120 d

Weaning Weight 60-70 55-65


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Production Timeline

Farm Flock RangeFeedlot: ADG .8 lb 75 days 100 daysMarketing: June Aug Nov-Jan

6-8 mo 7-9 mo125 lbs 120 lbs

Packer: 75% sold in Auctions 25% Packer direct


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Sheep Industry Concerns

1) Low consumption and decreasing- Greater emphasis on ethnic population- More affordable to blue collar population

2) Little Industry CoordinationNew Slogan ~ Meat Lovers KnowCheck off ~ partially paid by packers

3) Predators23% lost in Western States - Range flocks13% lost in Central States - Farm flocks


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Introduction to the U.S.Goat Industry


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Goat Industry

Three segments1) Dairy growing industry due to milkdemand and specialty cheeses


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Goat Industry

Three segments2) Angora largest industry in the U.S.until mid 90s loss of demand for hair


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Goat Industry

Three segments3) Meat fastest growing segment of theindustry


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Goat Industry

World 746 mil.

Asia 469 mil. 63.0%

Africa 223 mil. 30.0%S. America 22 mil. 3.0%Europe 17 mil. 2.3%U.S. 3.73 mil. .5%


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Swine Industry

Highly Vertically Integrated

Greater Confinement Facilities


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Swine Industry

Percent of total farm revenue:

- 5.6% of all Agriculture

- 11.6% of Livestock

U.S. Produces 10% of the worlds

pork with only 4.5% of the hogs

51.6 %

5.6% Swine

42.8 %


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Production Segments1) Farrow ~ Feeder pig production

Raise pigs and sell from 25-40 lbs

1) Finishing Operation (grow-finish)Unit can turn up to 3 times per year

if pigs are 50 lbs and greater


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Production Segments3) Genetic Provider

Not necessarily associated with a breedSome independent producers (Purebred)Sell gilts and some boars mainly Semen1 boar collection can cover 20 sows

4) Seedstock Operation- Private Producers ~ because of demand forboar semen have a tougher time selling boars- Very large PIC, Newsham, Babcock, Danbred


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Confinement Operations

d l


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Production Timeline

Breeding age 6 mo

Farrowing Litter size 6-13 (avg. 8)Litter wt good determinant of production

Pig Wt 3 4 lbs avg.

C fi t O ti


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Confinement OperationsFarrowing

P d i Ti li


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Production Timeline

Weaning: Days of age 21days 10-12 lbs

Nursery: 6-8 weeks leave at 45 60 lbs

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



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Confinement OperationsNursery



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Confinement OperationsGrower



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Confinement OperationsFinishing

M k P i


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Market Prices

Market Price: 52.00 /cwt live

Replacement Gilt: $50 over market ~$150 160

Cull Sow: 31.00/cwt avg. sow weighs 550 lbs ~ $175


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USDA - NASS


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S i I d t I


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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


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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.

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Lecture 3- Chpt 2-Overview of the Livestock Industry