Livestock Products & By-Products A. Products- ruminants and other animals eat feed materials that humans will not eat and convert these materials into food that humans will eat: meat, eggs, milk, etc. In addition to food, they also provide other products: 1. Food- meat, milk, cheese, eggs. 2. Clothing- wool, leather from hides. 3. Shelter- tents from hides. 4. Power- work in less developed countries. 5. Recreation- horseback riding, rodeos. 6. Manures can be used as raw materials in methane gas biodigesters. Also used as fuel in less developed countries. B. By-Products 1. Wool- from the coat of the animal. 2. Leather- from animal hides. 3. Candy and Chewing Gum- from animal fat. 4. Gelatin- from horns, hooves, bones, and hides. 5. Glue, candles, cosmetics, waxes, soap, lubricants, bushes, etc.- from horns, hooves, bones, and hides. 6. Animal Feeds- from scrap meat and bones and blood meal. 7. Insulin- used to treat diabetics was produced from livestock pancreas at one time in history. Today, insulin is produced more through biotechnology. 8. Heparin- from livestock lungs. Used for blood clotting. 9. Many other medicines used to treat thryroid issues, allergies and respiratory diseases. 10. Lanolin- from oil produced by skin of sheep. 11. Fertilizer, printer ink, lubricants- from inedible beef fats and proteins. Economic Impact & Importance A. Provides use of land and other resources, conserves soil. B. Helps provide jobs and increases tax base. C. Economic Importance 1. Income from livestock, poultry and their products is about twice that from all crops in North Carolina. 2. Income from broilers is about $2.6 billion per year. 3. Income from hogs is about $2.5 billion per year. 4. Income from turkeys is about $775,000 dollars. 5. Income from cattle is about $275,000 per year. 6. North Carolina is near the top nationally in production of hogs, turkeys, and poultry. Trends in Animal Agriculture A. Swine farms are getting fewer and larger. B. Health concerns have caused an increase in the consumption of poultry. C. Most poultry farms are contract growers. D. Most swine farmers grow on contract.
Issues in the Animal Agriculture Industry A. Animal Welfare- the humane treatment of animals. 1. Most animal producers and researchers believe in animal welfare, support animal nutrition and oppose cruel treatment of animals. 2. Scientific information should be the basis for decisions, laws and regulations related to animal welfare. 3. It is difficult to assess animal comfort and well-being because they do not talk and because there are no universally accepted measures to use. 4. Laws that Protect Animals i. Animal Welfare Act- sets standards for minimum care and treatment of animals used for commercial sale, research transported commercially or exhibited to the public. Originally passed in 1966, but revised numerous times. Most recent revision was in 2008. ii. Health Research Extension Act- passed in 1985. Sets standards for care of animals used for biomedical and behavioral research. B. Animal Rights- animals should not be used by humans. 1. Comparison to Animal Welfare i. Animal Welfare- involves good treatment, whereas animal rights means animals not used by humans ii. Animal welfare groups are usually less radical in their activities than rights groups. iii. Rights movement supporters are usually vegetarians. iv. Animal producers and researchers are usually supporters of animal welfare, but NOT animal rights. 2. Largest animal rights organization is the Humane Society of the United States. 3. The issue of animal rights and moral issues related to animals such as livestock and poultry date back thousands of years to the ancient Greeks.
The Animal Agriculture Process A. The process for producing and caring for animals varies greatly depending on the type of animals, location, facilities and overall producer goals. B. There has been an increase in consumer demand for locally grown and organically raised products. 1. Consumers have increased their awareness of how agriculture products are raised and manufactured. 2. The majority of livestock and poultry products are still produced and sold to commercial corporations who re-distribute them through various outlets such as grocery stores. C. In general, producers must decide: 1. Goal of production and purpose of animals. 2. The type of breeding system to use based on how they elect to produce the animals. 3. How to market the animals. Beef Cattle Production A. Types of Beef Cattle Operations- beef cattle producers may specialize in one type of cattle operation or combine various types. 1. Cow-Calf Producers- a herd of cows are bred each year to produce calves. These calves are often sold sometime after weaning (6 months to 1 year old animals). 2. Seedstock- also known as purebred breeders. Keeps herds of purebred breeding animals and provide replacement bulls for cow-calf operations. These operations focus more specifically on genetic improvements within a given breed. 3. Cattle Feeders i. Stocker Operations- purchase calves from a cow-calf producer and care for them for approximately 5 months (12 months to 17 months of age). ii. Feedlot- raises large numbers of animals in a more confined area. a. Animals are fed to a finished market weight and then sent to be processed between 18-22 months of age. b. Feedlot animals are purchased from stockers or cow-calf producers through one of the various types of livestock markets. B. Processing Beef Products 1. Feedlots sell animals to packing plants (slaughter houses). 2. Most packing facilities process animals into primal cuts and subprimal cuts. These products are sold to retailers and foodservice companies. 3. Some packing facilities sell subprimals to meat processors who create value added products such as pre-cooked items, sandwich meat, etc. C. The amount of time involved in producing beef cattle is significantly longer compared to swine and poultry.
D. Most beef cattle are grown independently, not on contracts. Dairy Cattle Production A. Dairy cattle production in the United States continues to shift towards larger herds that allow producers to maximize production and profits. B. Types of Dairy Cattle Operations 1. Intensive Dairy Production- animals are raised in a more confined setting such as an open lot or tie stall barn. 2. Pasture Dairy Production- cattle are turned out on pasture continuously or for portions of the day. 3. Some producers us a combination of both types. C. Production Cycle of Dairy Cattle 1. Mature cows are milked 2-3 times a day after they give birth and their lactation cycle begins. i. Calves are removed from the cow 1-2 days after being born. a. Male calves are typically used for veal or are raised as slaughter steers. b. Heifers are either kept to become replacements or are used for meat. c. Replacement heifers are typically raised in feedlot or pasture settings until they are ready to be moved in with the dairy herd. ii. Replacement heifers are bred around 15 months of age and begin producing milk 9 months later (2 years of age). 2. During the lactation cycle, cows are re-bred. 3. Approximately 60 days before they give birth again, they are dried off (quit producing milk) in preparation for their next calf to born. 4. The average production cycle of dairy cattle is 5-7 years. Animals are then processed for their meat. D. Processing Dairy Products 1. Milk is collected into large tanks at the farm and then transported to processing facilities. 2. The fluid milk (cream and skim) is separated and then re-blended to make skim, 2%, whole milk, etc. i. Fluid milk is pasteurized and homogenized. a. Pasteurization- rapid heating and cooling of milk to remove harmful bacteria. b. Homogenization- dispersing fat droplets so the milk stays uniformly mixed. ii. The excess fat removed from the fluid milk to make low fat milk such as skim and 2% is used to make products such as eggnog, butter, whipping cream, etc. 3. Other dairy products made from fat and butterfat at value added facilities include ice cream, yogurt and cheese.
Swine Production A. Most swine are grown through vertical integration contracts. 1. Vertical Integration Definition- two or more steps of production, marketing, and processing are linked together usually by contract between producers and feed manufacturers or between producers and processors or include all three. 2. Vertical Integration Example- a corporation such as Smithfield Foods, Inc. purchases feeder hogs from a producer and then raises the animals to a market weight in their company owned finishing house. Then they transport animals to the slaughter house that is also owned by Smithfield Foods, Inc. B. Commercially produced swine are typically raised in confinement type houses. C. Types of Swine Operations 1. Sow- maintains sows for breeding, gestation and farrowing. Manages piglets until they are weaned at approximately 21 days. 2. Nursery- manages piglets after they are weaned until approximately 10 weeks or 50lbs. 3. Grow-Finish- manages barrows and gilts until they are ready for market. 4. Farrow-to-Finish- manages a group of breeding sows and maintains piglets to market weights. Also known as complete sow and litter operation. i. Commercial operation will typically house animals in separate facilities to manage disease. ii. Typical operation for a small scale producer raising hogs for local markets. D. Processing Pork Products 1. Finishing operations send animals to processing facilities. In many cases the finishing operation and the slaughterhouse are vertically integrated. 1. Pork is processed into primal cuts and subprimal cuts. These products are sold to retailers and foodservice companies. 2. Some packing facilities sell subprimals to meat processors who create value added products such as ham, bacon, pre-cooked items, sandwich meat, etc. Poultry Production A. Most poultry in the United States is produced through vertical integration contract with large commercial operations. B. Types of Poultry Operations 1. Egg Production- producing eggs for human consumption. i. Laying hens are typically confined to cages or a floor-pen system. ii. Eggs are cleaned, graded and packed at the farm. iii. The laying hens produce eggs for approximately 72 weeks and then they are then sold for meat once their production cycle is complete. iv. Over ½ of laying hens are raised through vertical integration contracts.
2. Broiler Production- poultry produced for meat consumption. i. Poultry are fed high quality feed to maximize growth. ii. Hormones cannot be added according to USDA standards. iii. A producer will raise several flocks of birds each year. iv. Broilers are processed into cuts of meat and also value added products such as sandwich meat, pre-cooked products, etc. v. Approximately 99% of broilers are raised through vertical integration contracts. 3. Replacement Pullet Production- raising chickens to replace either egg production or broiler production operations. Breeding Livestock Animals A. Various breeding systems exist due to the various types of livestock operations. B. The size of the herd, amount of money available and goals of the producer are all factors that determine the type of system used. C. Some farms use more than one type of mating system. D. In general, cattle use all types of breeding systems while swine and poultry tend to utilize crossbreeding to develop industry owned hybrids. Types of Breeding Systems A. Straightbreeding- mating animals of the same breed. Types of straightbreeding systems: 1. Purebred Breeding- mating registered purebred male and female of the same breed. i. Animals are eligible for registry with a purebred association. ii. Example: Angus x Angus 2. Inbreeding- mating closely related animals. Increased the genetic purity of the stock produced, but is not used as often by the typical producer. Two types of inbreeding: i. Closebreeding- mating animals that are very closely related. Example: son X mother ii. Linebreeding- mating animals more distantly related than closebreeding. Example: cousin to cousin 3. Grading Up- mating purebred males (sires) to grade or unregistered or crossbred females (dams) to improve the herd. B. Crossbreeding- mating a male and female of different breeds. Usually results in improved traits of the offspring which is referred to as hybrid vigor. Example: Yorkshire boar x Yorkshire Hampshire sow 1. Crossbreeding Systems Include i. Terminal sire- replacement females are bred to a sire and all offspring are sold. ii. Rotational- uses a two, three or four breeds to rotate between sires and females. This system requires more intensive management.
Methods of Marketing Animals A. Terminal Markets- central markets on public stockyards where livestock are consigned to a commission firm to bargain with purchasers or buyers for a certain fee. B. Auction Markets- public bidding with the animals selling to the buyer who bids the highest. C. Direct Selling- farmer sells straight to buyer with no middle person or firm receiving commissions or fees. D. Electronic Marketing- auctioning online using computers. E. Futures Market and Hedging- legal document calling for delivery in the future, locking in a future delivery price. F. Vertical Integration Contracts- animals are produced as well as marketed as a part of the vertical integration enterprise.