ANS 1 Economic Impact Part 1

Economic Impact of the
Animal Science Industry

Obj 3.01 Explain the economic impact of the

animal science industry.

The Food

Animal
Industry

Food Animal Industry

● Livestock, dairy, and poultry receipts account for

over half of the total annual agricultural cash
receipts, often exceeding $100 billion per year.

● It is projected that future U.S. per capita

consumption will remain stable; thus, increased
demand for products will most likely come from
exports.

Beef Cattle

Beef production is one of the most
important agricultural industries in the
United States.

●Beef consistently accounts for the
largest share of total cash receipts for
all agricultural commodities.

●The U.S. is the world's largest
consumer of beef.

●Top states: Nebraska, Texas, Kansas
○NC ranks 10th in the nation

○It generates $228,926 in enonic
impact

Open Ended

What is one of the top producing cattle states?

Dairy

Dairy farms are
overwhelmingly

family-owned
and managed.

Farms are often
members of dairy
producer
cooperatives.

There has been a consistent

decline in the number of

operations; however, total milk

production has been buoyed
by an increase in the number

of cows per operation.

Top states:
California,
Wisconsin, Idaho

Milk is produced in all 50 states. North Carolina ranks 12th in the nation and

it contributes $167,132 to the economy.

Hogs

The hog industry has rapidly shifted to fewer and larger operations.
●Since 1990, the number of hog farms in the U.S. has declined by
more than 70 percent

●Remaining operations have grown larger in size.

●Annual domestic consumption of pork has remained stable over
the past two decades (approximately 67 pounds per capita).

●Pork exports continue to be a major economic factor for
processors (exceeding 7 billion pounds per year).

●Top states: Iowa, Minnesota, North Carolina
○North Carolina is ranked 2nd in the nation

○Generates $1,913,180 for the economy

Poultry

U.S. poultry products hold
leading positions in both the
US and international meat
commodity markets.

Broilers

The U.S. poultry industry (largely
vertically integrated) is the world's
largest producer of poultry meat.

●From 2011–2020, broilers averaged
67 percent of all poultry sector sales.

●Top states: Georgia, North Carolina,
Arkansas
○NC is ranked 1st

○Generates $2,877,186 in
economic value

Layers

Egg production is widely distributed
across the U.S.

●Chicken eggs, overwhelmingly
destined for human consumption,
averaged 21 percent of poultry
sales from 2011–2020.

●Top states: Iowa, Georgia, Ohio

○NC ranks 5th in the nation

○Generates $554,822 for the
economy

Turkeys

Averaged 12 percent of poultry sales
from 2011–2020.

●Top states: North Carolina,
Minnesota, Indiana
○NC ranks 3rd in the nation

○Generates $804,006 for the
economy

The

Companion

Animal
Industry

●The U.S. pet industry provides over 1.3 million
jobs.

●It generates more than $60 billion in salaries,
wages, and benefits.

●It creates over $221 billion in direct and indirect
economic impacts annually.

Companion animal industry

Companion animal industry

2/3 of all U.S. households own at least one pet.

●48 percent of U.S. households have at least one dog.

●38 percent of U.S. households have at least one cat.

●5 percent of U.S. households have a small mammal
(rabbit, guinea pig).

●6 percent of U.S. households have a bird.

●12 percent of U.S. households have fish.

●4 percent of U.S. households have a reptile.

Companion Animal Industry

Direct sales figures of the U.S. pet industry.

● $32.3 billion—pet food manufacturing
● $21.0 billion—veterinary services
● $14.5 billion—pet products
● $8.0 billion—pet services
● $2.1 billion—pet sales

Explain current trends in

the animal science industry.

Course Objective 3.02

15

Current Trends in the

Food Animal Industry

The food animal industry
continues to evolve, due

to many changes

17

CURRENT TRENDS FOOD ANIMAL INDUSTRY

18

How is it changing?
Numbers of
operations/farms
are decreasing

CURRENT TRENDS FOOD ANIMAL INDUSTRY

19

CURRENT TRENDS FOOD ANIMAL INDUSTRY

20

Why is it decreasing?
CONSOLIDATION

◉ Occurs when larger farms

acquire land that formerly
belonged to smaller ones

CURRENT TRENDS FOOD ANIMAL INDUSTRY

Open Ended

Why are the amount of farms decreasing?

21

Why is it decreasing?
CONSOLIDATION

◉ Government policies have

consistently favored larger
farms

CURRENT TRENDS FOOD ANIMAL INDUSTRY

22

Why is it decreasing?
CONSOLIDATION

◉

Production was once dominated by
independent, small scale firms, but
is now led by larger firms that are
tightly aligned across the
production & distribution chain

CURRENT TRENDS FOOD ANIMAL INDUSTRY

23

Why is it decreasing?
URBANIZATION

◉ Commercial & residential

development (urbanization)
continues to convert agricultural
land into alternative use

CURRENT TRENDS FOOD ANIMAL INDUSTRY

The North Carolina A&T State University
Farm is near downtown Greensboro, NC.

24

How is it changing?

The size of
operations/farms
is increasing

CURRENT TRENDS FOOD ANIMAL INDUSTRY

25

Why are they increasing?
ECONOMICS

◉ Economies of scale are

required to remain
competitive and profitable

CURRENT TRENDS FOOD ANIMAL INDUSTRY

Buy in Bulk

Efficient
Production

Reduction in

Promotion Costs

Spread Risk

Cheaper
Capital

Reduction in

Logistics Costs

Economies of
SCALE

26

How is it changing?
The average age of
primary operators is
climbing

CURRENT TRENDS FOOD ANIMAL INDUSTRY