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Agriculture Livestock Production Industry Profile Excerpt
| SIC Codes: 0212, 0213, 0214, 0251, 0252, 0253, 0254 NAICS Codes: 112 Page Length: 10-12 Last Quarterly Update: 10/6/2008 View Sample Industry Profile |
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The US livestock and poultry industry includes over one million farms with combined annual revenue of about $125 billion. Major companies include Cargill, Smithfield Foods, Pilgrim's Pride, Tyson, and Dean Foods. Hog farming, poultry and egg production, and dairy operations are all concentrated industries: the top 10 percent of companies in each of these three industries holds 90 percent or more of the total market. Cattle ranching and feedlot operations are much more fragmented, with the top 10 percent of companies controlling only 30 percent of the market.
This industry includes feedlot farms that prepare livestock for slaughter, but doesn't include slaughter, processing, or packing operations. The industry includes farm fishing operations (aquaculture), but not commercial fishing.
COMPETITIVE LANDSCAPE
Demand for meat, poultry, and dairy products is driven by domestic food consumption trends. The profitability of individual farms depends on efficient operations. Large companies have advantages in vertically integrated operations and economies of scale. Small operations can compete effectively by supplying local markets, specializing in heritage breeds, or raising humanely treated or hormone-free animals. Average annual revenue per worker for all US livestock and poultry farmers is $100,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are live cattle and beef (40 percent of industry revenue); dairy products (30 percent); chicken (15 percent); and live hogs and pork (10 percent). Other products include sheep, eggs, turkey, and farmed fish.
Livestock and poultry operators breed animals, supply feed, maintain animal health, provide shelter, ...
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