Cattle Ranching Industry Profile

Companies in this industry are ranches and farms that raise cattle, including those intended for dairy herd replacements, and feedlots that fatten cattle in preparation for slaughter. Major companies include AgriBeef; AzTex Cattle; and Cactus Feeders (all based in the US); JBS and Minerva (both headquartered in Brazil); Teys Australia Meat Group (Australia); and Nippon Meat Packers (Japan).

The global cattle herd totals more than 1 billion head, including about 91 million raised in the US. India, the US, Brazil, the EU, China, Argentina, and Australia are the world's top cattle and beef producers. Rising global demand for meat will fuel growth in the cattle ranching industry.

The US cattle ranching industry includes about 800,000 operators with combined annual revenue of about $63 billion and is expected to experience moderate growth over the next two years. Key growth drivers include demand for natural and organic beef, new export market opportunities, and cost-saving cattle leasing arrangements.

The industry doesn't include slaughter, processing, or packing operations. Meat processing is covered in the Meat Product Manufacturing profile.

COMPETITIVE LANDSCAPE

Demand is driven by food prices, population growth, and global trade policies. The profitability of individual operations depends on production efficiency and anticipating market demand. Large operators have some advantages in volume purchasing and efficient use of labor and equipment. Small operators can compete successfully by producing special grades of beef cattle and by controlling costs carefully. ...