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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
Confinement Operations
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Confinement OperationsNursery
Confinement Operations
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Confinement OperationsGrower
Confinement Operations
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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.