November 28, 2013
US study reveals livestock impact on soy industry
A new soy checkoff-funded study reveals that the industry will have to work to keep the trend afloat despite US animal agriculture''s increasing appetite for soymeal drove consumption up by one million tonnes in the 2011-12 marketing year.
The study, "National Animal Agriculture Economic Analysis," outlines economic benefits the poultry and livestock sectors can provide on a state and national level, as well as benefits to the soy industry and use of soymeal. It was commissioned by the checkoff and completed by Agrilytica.
The checkoff said that domestic animal agriculture remains a key player in the soy demand situation because it uses about 97% of the US soymeal consumed in the country.
Soy Checkoff-funded study says animal agriculture is critical driver of soymeal consumption, "The success of the US soy industry relies on the strength of the US animal agriculture industry," says Mike Beard, a checkoff farmer-leader from Frankfort, Ind.
However, the severe drought in 2012, rising feed costs and slowing US consumer demand have pressed the industry, the report found. Those pressures, while significant speed bumps for the livestock industry, can be a downer for soy growers, too.
The report noted that actions to maintain and expand animal agriculture in the US, by supporting its long-term competitiveness, are of critical importance to the soy sector.
The economic portion of the analysis indicated that on a national level, the livestock sector supports 1.8 million jobs, US$346 billion in total economic output, a US$60 billion impact on household incomes and US$21 billion in income and property taxes paid.
According to the report, US poultry, livestock and fish farmers used more than 30 million tonnes of soymeal in the time period measured. Broilers and swine continue to be by far the two biggest soymeal users, consuming the meal from about 13 million tonnes and 11 million tonnes of US soy, respectively.