Animal Production Industry Profile

The US animal production industry includes more than 1 million farms with combined annual revenue of about $160 billion. Major companies include Dairy Farmers of America, Dean Foods, Pilgrim's Pride, Smithfield Foods, and US Premium Beef. Hog farming, poultry and egg production, and dairy operations are concentrated industries: the top 20 percent of companies in each of these three industries account for about 75 percent of revenue. Cattle ranching and feedlot operations are highly concentrated: the top 10 percent of companies account for about 75 percent of revenue.

The animal production industry includes feedlot farms that prepare livestock for slaughter, but does not include slaughter, processing, or packing operations. The industry includes farms and ranches that earn the majority of their income from raising livestock. A cattle ranch, for example, may compete with farms that raise cattle but get most of their income from crops.

Worldwide, animal production generates annual revenue of more than $600 billion. Brazil, China, the EU, India, and the US are the largest livestock producers. Major companies outside the US include JBS (headquartered in Brazil); Industrias Bachoco (Mexico); and Danish Crown (Denmark).

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, ...