The Food Animal Industry and Economics

1. The Food Animal Industryand Economics

4. Cash Receipts • All Agricultural Commodities 3. 4. 5. • Top 5 States - Livestock 1. 2. 3. 4. 5.

6. Imports/Exports • World Trade • All US products • Negative number (more imports than exports) • US agricultural products • Positive number • Why do we need to import? • Are agricultural imports good for the US farmer?

9. What Influences Price? • Supply and demand • When supply is high relative to demand • When supply is low relative to demand • How quickly can we change supply as demand changes?

11. The Beef Industry

12. Cattle Basics • Terms • Young • Male • Intact – bull calf • Castrated - steer • Female – heifer • Heifer calf, yearling heifer, 1st calf heifer, heiferette • Mature • Male • Intact – bull • Castrated – steer or stag • Female – cow

13. Cattle Basics • Species of Cattle • Bos indicus – • Bos taurus – developed in more temperate regions (Europe)

14. World Beef Cattle Statistics

15. Beef Consumption Compared to other Protein Sources

16. What are the effects of cattle imports? • Supply vs demand • Price decrease • What cuts are being imported and exported? Why do we allow imports?

17. Cattle Inventory vs Beef Production

18. Total Cattle & Carcass Beef in The US 1977-2002 • U.S. Beef inventory • 1977 – • 2015 – 90 million • U.S. Carcass Beef Production • 1977 – 23 billion pounds • 2015 – How can this occur?

19. U.S. Beef Production • Carcass weight • 1975 – 579 lb • 2015 – • Market age of fed cattle has decreased • 15-24 months normally • Enhanced Genetics • Faster gaining cattle

20. Breeding Systems • Crossbreeding- the mating of 2 genetically very different parents. When this mating results in the progeny out performing both parents this is referred to as heterosis • Nicking- • Line Breeding- mating of related parents • Inbreeding- mating of closely related parents

21. Defects caused by inbreeding • Tibial hemimelia (TH) • Pulmonary Hypoplasia with Anasarca (PHA) • Arthrogryposis Multiplex (AM) • Neuropathic Hydrocephalus (NH)

23. Weaning to Harvest

24. Cow-Calf Production • 33 million head of beef cows • Mostly where forage is abundant • 16 states each have over 700,000 hd • 75% of US total • 60% of the 830,000 beef cow operations have less than 50 cows per operation • More than 70% of the beef cow inventory is in operations with more than 100 cows • Cow numbers fluctuate due to: • Drought • Land prices

25. Cow-Calf Production

27. Beef Cow Numbers • Top 5 States

30. Feedlot Cattle • Top 5 States • (Tie) Kansas & Nebraska • (Tie) Marketings are much higher than cattle on feed How can this be?

31. The Sheep and Goat Industry

32. Sheep Basics • Terms • Young • Male • Intact – ram/ram lamb • Castrated - wether • Female – ewe • Ewe lamb • Mature • Male • Intact – ram/buck • Castrated – wether or stag • Female – ewe • Mutton – meat from sheep that is over 1 year old

33. Goat Basics • Terms • Young • Male • Intact – buck kid • Castrated - wether • Female – doe • doe kid • Mature • Male • Intact – • Castrated – wether • Female –

34. Sheep and Goat Industry • Originated in Europe • Important in many regions of the world • Provide • Fiber, milk, hides, and meat • Very useful in developing countries • Adapt well to arid regions • Handle tough terrain • Don’t really compete with cattle • Goats graze browse (shrubs) and forbs (broadleaf plants) • Cattle – tall grasses and some forbs • Sheep - short grasses and some forbs

36. Sheep and Goats • World sheep numbers are at all time highs • 1 billion plus • U.S. exports small amounts of mutton • Mostly from cull ewes • U.S. imports lamb from Australia and New Zealand • World goat numbers – 924 million • Primarily in India and China • Followed by Pakistan, Sudan, and Bangladesh • Used for meat and milk in many regions

37. U.S. Sheep and Goats • 1942 numbers of sheep peaked • 56 million • 2015 • 2.7 million Meat Goats • Texas (1/1/2010) • 720,000 Sheep

40. U.S. Breeding Ewes • Top 5 States • California • Utah

41. Sheep Production • Major decline in sheep numbers in the west • Still produces 80% of US sheep • Most sheep are in flocks of <50 sheep • Secondary enterprise • 40% of the flocks in the west are >50 sheep • Within this group: • 1/3 of flocks in the West are exclusive sheep producers • 2/3 are diversified livestock producers • 23% of all sheep born in the Western US are lost before market • Predators • Weather

42. Types of Sheep Producers • Farm flocks • Generally smaller flocks • Produce lambs ready for slaughter • Range flocks • Generally larger flocks • Produce feeder lambs

43. Major Sectors • Purebred breeder • Raise seedstock • Genetic improvement • Sell rams and ewes at a significant premium • Record keeping of matings are essential • Commercial market lamb producer • Produce market ready or feedlot ready lambs • 120 lb at 120 days • Commercial feedlot operator • Some have capacity of 20,000 • Increase weight (fat) on lambs prior to slaughter • 40-60 days

44. The Swine Industry

45. Swine Basics • Terms • Young • Male • Intact – boar • Boar pig • Castrated - barrow • Female – gilt • Mature • Male • Intact – boar • Castrated – barrow • Female – sow • Farrowing – parturition in pigs • Parturition – giving birth

46. The Swine Industry • 50% are in China • US swine more productive on a per head basis • US Exports majority to Japan; Imports majority from Canada

47. U.S. Swine Industry • $18 Billion value in 2015 • Corn Belt • Produces 70% of the nations swine • Pigs are fed corn/soybean meal diets • North Carolina and Oklahoma have experienced huge growth. Why?

49. U.S. Swine Industry Top 5 States • North Carolina • Indiana

50. Pig Numbers Vs. Pork Production Figure 2.22 Pork production versus breeding hog inventory. Source: Livestock Marketing Information Center.