An Overview of Indiana Animal Agriculture Perspectives on the Beef, Dairy, Hog and Poultry Industries Dr. Ken Foster & Dr. Michael Wilcox Department Head AgEcon Extension and PCRD March 26, 2013
AUTHORS Michael D. Wilcox, Jr. is an Assistant Program Leader for Economic and Community Development in Purdue Extension and Senior Associate in the Purdue Center for Regional Development. Nicole J. Olynk Widmar is an Assistant Professor in the Department of Agricultural Economics. Anita Yadavalli is a Graduate Research Assistant in the Department of Agricultural Economics. David A. Widmar is a Research Associate in the Center for Food and Agricultural Business in the Department of Agricultural Economics. Kenneth A. Foster is a Professor and the Department Head for the Department for Agricultural Economics.
RATIONALE Need for estimation of livestock s economic impact on the Indiana economy 2013 is a Census of Agriculture data gathering year Baseline of inventory, production and value of production trends a foundational effort Data availability is a very real challenge Final choice of species included in report
RATIONALE Renewable Fuels Act Index of Corn, Soybean and Hay Prices in the U.S. and Indiana, 1985-2012 ( Base Year) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 Corn- Corn- Soybean- Soybean- Hay- Hay- 0.5 0.0 1985 1986 1987 2012
DIANA LIVESTOCK AND POULTRY - 2012 Indiana s Share of U.S Livestock Production by Species/Product in and Species / Product Indiana Share () Indiana Share () Indiana s Rank in U.S. () Beef (lbs.) 0.6% 0.49% 35 th Dairy (lbs. of milk) 1.8% 1.8% 14 th Hogs (lbs.) 5.4% 5.7% 5 th Eggs (number) 6.95% 7.1% 4 th Turkeys (lbs.) 5.95% 7.9% 6 th
OVERVIEW OF BEEF 1985-2012 Nearly 10,000 farms () Approx. $205 million in value Cow-calf Higher density in Southern 70% of farms <20 head Inventory dropped 58% since 1985 Current inventory 320,000 (2013)
DIANA BEEF 2012 Indiana and U.S. Cattle & Calves Production (Q) Index, -2012 ( Base) 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 Indiana and U.S. Cattle & Calves Value of Production Index, -2012 ( Base) 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5
OVERVIEW OF DAIRY 1985-2012 diary farms () Approx. $743 million in value Operations in northern and eastern Indiana Small farms outnumber large, but large have significant market share (500+ head = 2% of farms; and 33% of inventory)
DIANA DAIRY 1985-2012 1.2 1.1 1 Indiana and U.S. Milk Production Index, 1985-2012 ( Base Year) 0.9 0.8 0.7 0.6 1985 1986 1987 Indiana and U.S. Value of Milk Production Index, 1985- ( Base Year) 1.6 1.4 1.2 1 0.8 0.6 0.4 1985 1986 1987
OVERVIEW OF HOGS 1985-2012 ~3750 hog farms () Approx. $1.1 billion in value Operations spread throughout Indiana with core in north central Primarily Farrow to Finish and Finish only operations Large farms (1000+ head account for 31% of farms and 96% of production Some vertical integration
DIANA HOGS 1985-2012 Indiana and U.S. Hog Production (Quantity) Index, -2012 ( Base Year) 1.25 1.15 1.05 0.95 0.85 0.75 Indiana and U.S. Hog Production Value Index, -2012 ( Base Year) 1.7 1.5 1.3 1.1 0.9 0.7 0.5
OVERVIEW OF POULTRY 1985-2012 Poultry production in Indiana includes egg, chicken, duck, turkey, and pullets for laying flock replacement Production is vertically integrated Companies control breeding, growing, processing and marketing of the poultry species Independent farms are contracted to perform some of the duties associated with poultry production under strict guidelines and use methods prescribed by the companies. Integration precludes publication of data due to disclosure issues Examine eggs and turkeys
DIANA EGGS 1985-2012 Indiana and U.S. Egg Production Quantity Index, 1985-2012 ( Base Year) 1.1 1.05 1 0.95 0.9 0.85 0.8 0.75 0.7 Indiana produced 6.5 billion eggs in 1985 1986 1987 Indiana and U.S. Egg Value of Production Index, 1985-2012 ( Base Year) 2.95 2.7 2.45 2.2 1.95 1.7 1.45 1.2 0.95 0.7 1985 1986 1987 Indiana egg production was valued at $422 million in
DIANA TURKEYS 1985-2012 Indiana and U.S. Turkey Production Quantity Index, 1985-2012 ( Base Year) 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1985 1986 1987 Indiana produced 579 million pounds of turkey in Indiana and U.S. Turkey Value of Production Index, 1985-2012 ( Base Year) 2.1 1.85 1.6 1.35 1.1 0.85 0.6 0.35 1985 1986 1987 Indiana turkey production was valued at $395 million in
CONCLIONS Indiana livestock production (for the species included in this study) was valued at nearly $2.9 billion in, a 58.5 percent increase from
DIANA LIVESTOCK AND POULTRY - 2012 Indiana Livestock Production in Quantity and Nominal Value in and Species / Product Production Production Percent Change (05-11) Production ($) Production ($) Percent Change (05-11) Beef 243,333,000 lbs. live weight 202,294,000 lbs. live weight -16.9% 209,091,000 204,738,000-2.1% Dairy 3,166,000,000 lbs. of milk 3,539,000,000 lbs. of milk 11.8% 506,560,000 743,190,000 46.7% Hogs 1,485,217,000 lbs. live weight 1,755,434,000 lbs. live weight 18.2% 703,129,000 1,093,908,000 55.6% Eggs 6,254,000,000 eggs 6,483,000,000 eggs 3.7% 192,327,000 422,337,000 119.6% Turkeys 428,800,000 lbs. live weight 579,200,000 lbs. live weight 35.1% 192,960,000 395,014,000 104.7%
CONCLIONS The recent drought conditions produced challenging feed availability situations for many livestock and poultry producers, increased feed costs for producers and limited the productivity of pasturelands. Indiana will need dedicated producers and supportive allied industries, as well as a solid research and education base, in order to sustain and potentially grow the value of production in these key industries of the state.
Dr. Ken Foster Professor and Head of Department Agricultural Economics 403 West State Street Purdue University West Lafayette, 47907 P: 765-494-1116 E: kfoster@purdue.edu Dr. Michael Wilcox Assistant Program Leader / Purdue Extension Senior Associate / Center for Regional Development 203 S. Martin Jischke Drive, Ste 266 Purdue University West Lafayette, 47907-1971 P: 765-496-2640 E: wilcox16@purdue.edu To download the entire study, executive summary, one page factsheets and this presentation, please go to: http://www.agecon.purdue.edu/extension/livestock_overview.asp