1. OVERVIEW of WORLD & U.S. BEEF CATTLE INDUSTRIES By David R. Hawkins Michigan State University

2. 2000 WORLD CATTLE and BUFFALO (million head) India 313 Brazil146 China127 U.S.A. 98 Argentina 50 Russian Fed. 27 Australia 26 Mexico 24 Columbia 22 France 20 Germany 15 South Africa 14 Canada 13 Venezuela 12 World Total 1,011

3. 1999 WORLD BEEF and VEAL PRODUCTION (mil.metric ton) U.S.A.12.1 Brazil 6.2 China 5.1 Argentina 2.8 Australia 2.0 Russian Fed. 1.9 Mexico 1.9 India 1.7 France 1.6 Germany 1.4 Canada 1.2 Italy 1.2 Ukraine 0.8 United Kingdom 0.7 Columbia 0.7 Total World49.3

4. 1999 INTERNATIONAL MEAT TRADE (Thousand Metric Ton) EXPORTS U.S.A.1,677 Australia1,300 Canada1,139 Brazil 631 Denmark 594 New Zealand 420 World Total9,083 IMPORTS Japan1,824 U.S.A.1,679 Russian Fed.1,200 Mexico 440 Korea 365 Hong Kong 329 World Total7,353

5. IMPACT of U.S. CATTLE INDUSTRY U.S. has about 5% of world population U.S. has about 10% of world cattle U.S. produces 25% of world beef and veal U.S. consumes 17% of world beef and veal

6. SIZE & INVESTMENT of U.S. BEEF INDUSTRY SEGMENTS Seedstock – 120,000 breeders$ 15 bil. Cow-calf – 830,880 operations $ 180 bil. Dairy – 105,250 operations Feedlot – 44,000 feedlots$ 7.5 bil. Packers – 1,250 operations$ 3.8 bil. Retailers – 250 food chains$ 50 bil. Consumers – 270 mil. +

7. IMPORTANCE of U.S. CATTLE INDUSTRY When one considers the value of the cattle and the land utilized to produce the feed, the U.S. cattle industry is the largest single component of American agriculture. Other multibillion dollar industries – feed, finance, equipment, marketing, publications, etc. are highly dependent on cattle. Income generated by the beef industry yields a $3 to $5 economic multiplier effect to the communities in which it exists.

8. LOCATION of U.S. BEEF INDUSTRY The “beef belt” is located eastward from the Rocky Mountains to Wisconsin and Illinois. 70% of the cash receipts 60% of the beef cows 80% of the cattle on feed 75% of the cattle harvested

9. STATE CATTLE INVENTORY January 1, 2001 Beef Cows TX5,465,000 MO2,070,000 NE1,950,000 OK1,910,000 SD1,809,000 MT1,531,000 KS1,524,000 MI (38 th ) 85,000 Total 33,400,000 Cattle on Feed TX2,940,000 NE2,550,000 KS2,450,000 CO1,230,000 IA1,050,000 CA 450,000 OK 415,000 MI (14 th ) 190,000 Total 14,199,000

10. STATE CATTLE INVENTORY January 1, 2001 All Cattle & Calves TX13,700,000 KS 6,700,000 NE 6,600,000 CA 5,150,000 OK 5,050,000 MO 4,250,000 SD 4,050,000 MI (31 st ) 980,000 Total97,309,000 Dairy Cows CA1,560,000 WI1,330,000 NY 670,000 PA 610,000 MN 520,000 ID 354,000 TX 345,000 MI (8 th ) 300,000 Total9,203,000

11. U.S. Cattle Inventory (mil.hd.) Beef Production (bil.lb.) 199297.623.0 199399.222.9 1994 101.0 24.3 1995 102.8 25.1 1996 103.5 25.4 1997 101.7 25.4 199899.7 25.7 199998.5 26.4 200098.226.8 200197.326.0 2002*96.725.5 2003*97.925.3 2004*99.325.4 2005* 100.8 25.6 Source: Cattle-Fax 12/10/01

12. MEAT CONSUMPTION PER CAPITA There are several ways to calculate meat consumption per person per year. Carcass Wt./# of people – The carcass contains fat & bone that we do not consume Retail Wt./# of people – This contains bone and some fat that we do not consume Boneless Wt./# of people – This may be most accurate, but is hard to get

13. MEAT CONSUMPTION PER CAPITA Retail weight is most often presented. To adjust annual per capita retail weight to a boneless basis, one must subtract the bone weight from the retail weight using the following: –Beef = - 4 lb. –Pork = - 3 lb. –Turkey = - 4 lb. –Chicken = - 22 lb. to –24 lb.

14. 2000 PER CAPITA MEAT CONSUMPTION Beef69.5 lb. retail (65.5 boneless) Pork53.8 lb. retail (50.8 boneless) Chicken82.1 lb. retail (60.1 boneless) Turkey17.9 lb. retail (13.9 boneless) Lamb 1.0 lb. retail Veal 0.8 lb. retail Total Red Meat & Poultry = 225.1 lb. retail

15. 2000 PER CAPITA SPENDING BEEF, PORK & CHICKEN BEEF$ 212.2244.5% PORK$ 139.0229.1% BROILER$ 126.3126.4% TOTAL $ SPENT = $ 478.28

16. PRODUCTION & CONSUMPTION Small differences in consumption translates into large differences in production. If 90% of our population ate one more 4 oz. serving of beef in a 2 week period, it would take would take the carcass wt. equivalent of 2.2 million more cattle per year to supply the increased consumption. (NCBA)

17. IMPACT OF EXPORTS ON U.S. BEEF INDUSTRY If exports to Japan decline in 2002, and no new markets develop, a 10% reduction would add 2.1 million lbs.per week to the U.S. domestic supply. If this 10% reduction lasted all year, live prices would reduced by $ 0.50/cwt. Source: Cattle-Fax