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The Institute for Feed Education and Research (IFEEDER) released a new report that found that U.S. domestic livestock and pets consumed nearly 284 million tons of food in 2019. The report also provides expert economic analysis on how the coronavirus pandemic may impact the industry’s growth over the next five years.
Decision Innovation Solutions (DIS), the economic and analysis firm that performed the study, found that in 2019, the industry’s 5,836 manufacturing facilities produced at least 283.8 million tons of animal food. The top three animal food consumers included beef cattle at 64.5 million tons, hogs at 61.8 million tons and broiler chickens at 60.8 million tons.
Of the 61.8 million tons fed to U.S. hogs in 2019, about 60% of this amount came from corn. Adding soybean meal and DDGs to corn’s share represented nearly 80% of all feed tonnage provided by these three commodities to hogs in 2019. Other commodities comprising at least 1% of tonnage fed to hogs that year include wheat middlings and wheat bran, wheat, corn gluten feed, animal byproduct meals, other processed plant byproducts, fats and oils, grain sorghum and others.
The pandemic may impact industry growth
DIS estimated the baseline consumption at the beginning of 2020 at 252.6 million tons (excluding forages and roughages) with an estimated value of $66.7 billion, under normal production circumstances without the effects of the pandemic. With COVID-19, the projected consumption rate fell 1.7% to roughly 248.4 million tons, a difference of 4.2 million tons less feed consumed worth $1.6 billion, leaving the industry with a total post-COVID-19 value of $47.5 billion.
In a worst-case scenario, where the industry encounters further disruptions in processing and slaughter numbers or potential trade issues, DIS estimated 2025 animal food production could further decrease 4.5% to 237.2 million tons at a value of $45.4 billion. In an expected-case scenario, where the industry continues business as usual without any further major disruptions, DIS estimated that by 2025 animal food production could increase 2.5% to 254.6 million tons worth roughly $48.8 billion. In a best-case scenario, where the hotel, retail and institution sectors of the economy recover quickly and travel and trade conditions dramatically improve, DIS estimated that by 2025 feed production could increase 5.9% to 263.1 million tons, valued at $50.4 billion.
The full report, data, maps and graphics can be found at ifeeder.org/feeddata.
March 5, 2021/ IFEEDER/ United States.
http://ifeeder.org/
