Herd mentality: Industry revenue is also expected to continue falling in line with weakening red meat prices

Over the five years to 2018, revenue for the Beef Cattle Production industry is expected to decline, largely due to declining red meat prices. During the period, the price of red meat has been extremely volatile, as a result of fluctuating feed prices, but prices ultimately declined, which served to slow the growth of industry revenue. Over the five years to 2023, declines in red meat prices are expected to continue declining, albeit at a slower pace. Industry revenue is also expected to continue falling in line with weakening red meat prices, also at a diminished rate. Though cattle producers are expected to trim herd numbers, slowing price declines, it is not expected that herds will shrink to the point where prices will return to growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$65bn
Annual Growth 13-18
-2.2%
Forecast Growth 18-23
Profit
Employment
784,358
Businesses
769,236
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Future conditions are expected to remain challenging to industry operators
  • Exports comprise a low share of industry because shipping live animals abroad can be a slow and costly process
  • Per capita consumption of beef is anticipated to continue declining
  • Industry Report - Industry SWOT Analysis Chapter

    The Beef Cattle Production industry is in the mature stage of its life cycle. Industry value added (IVA), a measure of an industry's contribution to the economy as a whole, is expected to contract an annualized 0.7% over the 10 years to 2023. Comparatively, US GDP is forecast to grow an annualized 2.2% during the same period. Typically, if IVA is growing slower than GDP it indicates an industry in the decline phase of its life cycle. However, in this case weakness in IVA growth can be attributed to a large decline in profit from 2013 levels, when demand and meat prices were significantly higher. The production of bulls and cows to breed heifers and steers for slaughtering purposes has remained largely unchanged for centuries. Whi...purchase to read more.

    Additional Insights for the Beef Cattle Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beef Cattle Production Industry are

  • Ability to secure long-term sales contracts
  • Adapting to market conditions
  • Locating close to key livestock markets
  • IBISWorld analysts also discuss how external factors such as Price of red meat and Demand from meat, beef and poultry processing in the Beef Cattle Production industry impact industry performance..

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    What's in this report

    What is the Beef Cattle Production Industry?

    This industry includes farms and ranches that primarily engage in raising cattle (including cattle for dairy herd replacements), or feeding cattle for fattening to prepare them for consumption. The industry also comprises cattle feedlot operations, which produce high-quality beef.

    Industry Products
  • Steers
  • Heifers
  • Cows
  • Calves
  • Bulls
  • Dairy Cows and Other
  • Industry Activities
  • Cattle and calf ranching and farming
  • Feedlot operations
  • Backgrounding and conditioning cattle
  • Feeder, stocker and veal calf replacement
  • Dairy heifer replacement
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of red meat
  • Demand from meat, beef and poultry processing
  • Per capita beef consumption
  • Price of feed

  • Current Performance
  • Beef consumption trends
  • Downstream demand and international trade
  • Volatile feed and beef prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption and downstream demand
  • Big three leave feedlots
  • Adding value
  • Table: Beef Cattle Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beef Cattle Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production
  • Meat, Beef & Poultry Processing
  • Cattle & Hog Wholesaling

  • Key Selling Industries
  • Beef Cattle Production
  • Cattle & Hog Wholesaling
  • Corn, Wheat & Soybean Wholesaling
  • Farm Supplies Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Livestock Production Support Services
  • Tractors & Agricultural Machinery Manufacturing
  • Veterinary Services

  • Products & Services
  • Steers
  • Heifers
  • Dairy Cows and Other
  • Cows
  • Bulls
  • Calves
  • Chart: Beef Cattle Production Industry Products and Services Segmentation

  • Demand Determinants
  • Product prices
  • Consumer preferences
  • Public perception

  • Major Markets
  • For Stocking
  • For Slaughter
  • For Feedlots
  • Export Markets
  • Chart: Major Market Segmentation for the Beef Cattle Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesRent and UtilitiesWages, marketing and otherDepreciation
  • Chart: Cost Structure Benchmarking – Sector vs Beef Cattle Production

  • Basis of Competition
    Large feedlotsSmall farmsExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beef Cattle Production Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Beef Cattle Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Beef Cattle Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Red Meat (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Beef Cow
  • A cow that raises calves intended for slaughter and meat consumption.
  • Bovine Spongiform Encephalopathy
  • More commonly known as mad cow disease, a degeneration of the brain and spinal cord in cattle.
  • Feeder Cattle
  • Young steers or heifers that enter feedlots and are put on full feed for slaughter markets or that are selected as herd-replacement stock.
  • Stocker Cattle
  • Calves or young steers and heifers put on forage-intensive diets. Stocker cattle eventually become feeder cattle and enter feedlots.
  • What Our Customers Say

    Why buy this report?

    The Beef Cattle Production Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Beef Cattle Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Beef Cattle Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Beef Cattle Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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