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