Overview

Farm fresh: Revenue growth is expected in line with projected increases in the price of red meat

IBISWorld’s Beef Cattle Production Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Beef Cattle Production industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$68bn
Annual Growth
12-17
-1.1%
Annual Growth
17-22
Profit
Employment
850,900
Business
807,042

Industry Threats & Opportunities

  • The industry’s exposure to external volatility will remain unchanged
  • Key downstream markets in wholesaling exhibited growth, helping support demand
  • Increase in consumption can predominantly be attributed to rising disposable incomes
  • Industry Analysis & Industry Trends

    Over the five years to 2017, the price of red meat has been extremely volatile. This phenomenon has been compounded by declining per capita beef consumption, which has declined. The Beef Cattle Production industry is facing significant external competition from other livestock production industries. Over the five years to 2022, industry revenue is expected to increase in line with projected increases in the price of red meat. Nevertheless, Americans will continue consuming red meat as long as price premiums over substitutes such as chicken remain low.

    Industry Report - Industry Key Buyers Chapter

    The Beef Cattle Production industry comprises a mixture of concentrated and widely dispersed activities. Typical of many agricultural pursuits, many small operators characterize US cattle ranching, where 99.0% of industry operators are considered nonemploying enterprises. However, competitive pressures are forcing smaller farms to close as the industry moves toward specialist large-scale operations that typically incur lower per head costs through economies of scale.

    Small farms

    According to the US Department of Agriculture (USDA), the average herd size is 40 cattle per operation. Moreover, only an estimated 9.0% of calf-cow operations have herds over 100 head. This 9.0% with herds over 100 head represents a majority (51.0%)

    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 Demand from meat, beef and poultry processing and Price of red meat in the Beef Cattle Production industry impact industry performance..

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    Industry Products

    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

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

  • Current Performance
  • Beef consumption trends
  • Downstream demand
  • Volatile feed prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption and downstream demand
  • Consolidation to rise
  • 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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages, marketing and other
  • Depreciation
  • Chart: Cost Structure Benchmarking – Sector vs Beef Cattle Production

  • Basis of Competition
  • Large feedlots
  • Small farms
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beef Cattle Production Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Beef Cattle Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per Capita Beef Consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • Why buy this report?

    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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