OVERVIEW of WORLD & U.S. BEEF CATTLE INDUSTRIES

By

David R. Hawkins

Michigan State University

2000 WORLD CATTLE and BUFFALO (million head)

• India 313• Brazil 146• China 127• U.S.A. 98• Argentina 50• Russian Fed. 27• Australia 26

• Mexico 24• Columbia 22• France 20• Germany 15• South Africa 14• Canada 13• Venezuela 12

World Total 1,011

1999 WORLD BEEF and VEAL PRODUCTION (mil.metric ton)

• U.S.A. 12.1• Brazil 6.2• China 5.1• Argentina 2.8• Australia 2.0• Russian Fed. 1.9• Mexico 1.9• India 1.7

• France 1.6• Germany 1.4• Canada 1.2• Italy 1.2• Ukraine 0.8• United Kingdom 0.7• Columbia 0.7

Total World 49.3

1999 INTERNATIONAL MEAT TRADE (Thousand Metric Ton)

EXPORTS

• U.S.A. 1,677

• Australia 1,300

• Canada 1,139

• Brazil 631

• Denmark 594

• New Zealand 420

World Total 9,083

IMPORTS• Japan 1,824• U.S.A. 1,679• Russian Fed. 1,200• Mexico 440• Korea 365• Hong Kong 329

World Total 7,353

IMPACT of U.S. CATTLE INDUSTRY

• U.S. has about 5% of world population

• U.S. has about 10% of world cattle

• U.S. produces 25% of world beef and veal

• U.S. consumes 17% of world beef and veal

SIZE & INVESTMENT of U.S. BEEF INDUSTRY SEGMENTS• Seedstock – 120,000 breeders $ 15 bil.

• Cow-calf – 830,880 operations $ 180 bil.

• Dairy – 105,250 operations

• Feedlot – 44,000 feedlots $ 7.5 bil.

• Packers – 1,250 operations $ 3.8 bil.

• Retailers – 250 food chains $ 50 bil.

• Consumers – 270 mil. +

IMPORTANCE of U.S. CATTLE INDUSTRY

• When one considers the value of the cattle and the land utilized to produce the feed, the U.S. cattle industry is the largest single component of American agriculture.

• Other multibillion dollar industries – feed, finance, equipment, marketing, publications, etc. are highly dependent on cattle. Income generated by the beef industry yields a $3 to $5 economic multiplier effect to the communities in which it exists.

LOCATION of U.S. BEEF INDUSTRY

• The “beef belt” is located eastward from the Rocky Mountains to Wisconsin and Illinois.

• 70% of the cash receipts

• 60% of the beef cows

• 80% of the cattle on feed

• 75% of the cattle harvested

STATE CATTLE INVENTORYJanuary 1, 2001

Beef Cows• TX 5,465,000• MO 2,070,000• NE 1,950,000• OK 1,910,000• SD 1,809,000• MT 1,531,000• KS 1,524,000• MI (38th) 85,000

Total 33,400,000

Cattle on Feed• TX 2,940,000• NE 2,550,000• KS 2,450,000• CO 1,230,000• IA 1,050,000• CA 450,000• OK 415,000• MI (14th) 190,000

Total 14,199,000

STATE CATTLE INVENTORYJanuary 1, 2001

All Cattle & Calves• TX 13,700,000• KS 6,700,000• NE 6,600,000• CA 5,150,000• OK 5,050,000• MO 4,250,000• SD 4,050,000• MI (31st) 980,000

Total 97,309,000

Dairy Cows• CA 1,560,000• WI 1,330,000• NY 670,000• PA 610,000• MN 520,000• ID 354,000• TX 345,000• MI (8th) 300,000

Total 9,203,000

U.S. Cattle Inventory (mil.hd.)Beef Production (bil.lb.)

• 1992 97.6 23.0• 1993 99.2 22.9• 1994 101.0 24.3• 1995 102.8 25.1• 1996 103.5 25.4• 1997 101.7 25.4• 1998 99.7 25.7• 1999 98.5 26.4

• 2000 98.2 26.8• 2001 97.3 26.0• 2002*96.7 25.5• 2003*97.9 25.3• 2004*99.3 25.4• 2005* 100.8 25.6

Source: Cattle-Fax 12/10/01

MEAT CONSUMPTION PER CAPITA

• There are several ways to calculate meat consumption per person per year.

• Carcass Wt./# of people – The carcass contains fat & bone that we do not consume

• Retail Wt./# of people – This contains bone and some fat that we do not consume

• Boneless Wt./# of people – This may be most accurate, but is hard to get

MEAT CONSUMPTION PER CAPITA

• Retail weight is most often presented. To adjust annual per capita retail weight to a boneless basis, one must subtract the bone weight from the retail weight using the following:– Beef = - 4 lb.

– Pork = - 3 lb.

– Turkey = - 4 lb.

– Chicken = - 22 lb. to –24 lb.

2000 PER CAPITA MEAT CONSUMPTION

• Beef 69.5 lb. retail (65.5 boneless)

• Pork 53.8 lb. retail (50.8 boneless)

• Chicken 82.1 lb. retail (60.1 boneless)

• Turkey 17.9 lb. retail (13.9 boneless)

• Lamb 1.0 lb. retail

• Veal 0.8 lb. retail

• Total Red Meat & Poultry = 225.1 lb. retail

2000 PER CAPITA SPENDING BEEF, PORK & CHICKEN

• BEEF $ 212.22 44.5%

• PORK $ 139.02 29.1%

• BROILER $ 126.31 26.4%

TOTAL $ SPENT = $ 478.28

PRODUCTION & CONSUMPTION

• Small differences in consumption translates into large differences in production.

• If 90% of our population ate one more 4 oz. serving of beef in a 2 week period, it would take would take the carcass wt. equivalent of 2.2 million more cattle per year to supply the increased consumption. (NCBA)

IMPACT OF EXPORTS ON U.S. BEEF INDUSTRY

• If exports to Japan decline in 2002, and no new markets develop, a 10% reduction would add 2.1 million lbs.per week to the U.S. domestic supply.

• If this 10% reduction lasted all year, live prices would reduced by $ 0.50/cwt.

Source: Cattle-Fax