Livestock and meat industry

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Livestock and meat industry

• Per capita consumption
• Demand measures
• Trends
• Industry segments and structure
• Think of implication for supply and demand??????

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Livestock Poultry Markets 2009

• Billion Per Cap Price Exp Imp
• lbs1 lbs2 /cwt 3 3
• Broilers 35.2 80.0 77.59 16.0 0.2
• Beef 26.0 61.6 83.16 7.0 10.6
• Pork 23.0 50.8 40.82 19.3 0.1
• Turkeys 5.6 17.0 79.72 9.3 0.2
• Lamb .17 .97 100.91 8.8 95.3

1/ Billion pounds of US production 2/ Pounds
consumed per person per year 3/ As a percent of
production
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Livestock Marketing Information Center
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Measuring consumption

• Balance sheet approach
• Beginning inventories
• Production
• Imports
• - Exports
• - Ending inventory
• Disappearance
• Per Capita consumption Disappearance
  Population
• A measure of supply rather than demand

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Livestock Marketing Information Center Data
Source USDA/NASS
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Livestock Marketing Information Center
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US Beef Cattle Sector
Packers 33.7 million slaughter and 4 73
Feedlots 26.2 million marketings, 260 60
Backgrounders
Beef Cows 32.5 million cows in 758,000 herds
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One time capacity
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Estimated Beef Packer Capacity
Rank Company Head/Day Share
1 Cargill Meat Solutions 29,000 21.2
2 Tyson Foods 28,700 21.0
3 JBS Swift 28,600 20.9
4 National Beef Packing 14,000 10.2
5 American Foods Group 7,000 4.7
6 Greater Omaha Packing 2,900 2.0
7 Nebraska Beef 2,600 1.9
8-13 10,100 7.4
Smaller 14,605 10.7
Total 136,855
Source CME DLR
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US Hog Operations and Inventory by Size Based on
Ownership of Hogs, 2007
Inventory Operations Inventory Hogs/Operation
lt500 48,760 2,727,080 56
500-999 2,840 2,181,664 768
1000-1999 1,860 3,272,496 1,759
2000-4999 1,600 6,135,930 3,835
5000-9999 670 5,454,160 8,141
10000-19999 340 5,454,160 16,042
20000-49999 150 6,135,930 40,906
50000 120 36,815,580 306,797
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Commercial Hog Slaughter Companies
Company 2002 2003 2004 2005 2006 2007 2008
Smithfield 19.9 22.5 26.1 25.1 26.5 28.4 28.3
Tyson 18.0 18.0 18.5 17.9 17.4 17.6 17.6
JBS USA 10.7 11.5 10.8 10.8 10.9 11.1 10.8
Cargill 8.5 9.2 8.9 9.0 8.7 8.5 8.5
Hormel 7.0 6.9 7.0 7.0 8.4 8.7 8.2
TOP 5 64.1 68.1 71.3 69.8 71.9 74.3 73.4
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Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009 Percent of U.S. Hogs Sold Through Various Pricing Arrangements, January 1999-2009
Year 99 00 01 02 03 04 05 06 07 08 09
Hog or meat market formula 44.2 47.2 54 44.5 41.4 41.4 39.9 41.8 38.3 37.1 41.2
Other market formula 3.4 8.5 5.7 11.8 5.7 7.2 10.3 8.8 8.5 11.0 7.9
Other purchase arrangement 14.4 16.9 22.8 8.6 19.2 20.6 15.4 16.6 15.2 13.4 11.6
Packer-sold 2.1 2.2 2.1 2.4 2.6 6.7 6.1 5.6
Packer-owned 16.4 18.1 17.1 21.4 20 22.7 23.1 25.7
Negotiated - spot 35.8 25.7 17.3 16.7 13.5 11.6 10.6 10.2 8.6 9.2 8.1
Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm Source Grimes and Plain, University of Missouri http//agebb.missouri.edu/mkt/vertstud09.htm
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3715
68
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1347
133
295
673
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Top 10 Milk Cooperatives, 2008
30
Million