Cattle Ranching
Description
Companies in this industry are ranches and farms that raise cattle, including those intended for dairy herd replacements, and feedlots that fatten cattle in preparation for slaughter. Major companies include Cactus Feeders, Five Rivers Cattle Feeding, King Ranch, and Simplot (all based in the US), as well as ANZCO Foods (New Zealand), JBS (Brazil), and SuKarne (Mexico).
The global cattle population amounted to over 942 million head in 2023, including about 12.2 million tons of beef and veal produced in the US, according to Statista and the USDA. India, Brazil, the US, China, and the EU are the world's top cattle and beef producers, according to the 2023/2024 Beef Production report by the US Department of Agriculture (USDA). Rising global demand for meat will fuel growth in the cattle ranching industry.
The US cattle ranching industry includes about 750,000 farms with combined annual revenue of about $90 billion.
The industry doesn't include slaughter, processing, or packing operations. Meat processing is covered in the Meat Product Manufacturing profile.
COMPETITIVE LANDSCAPE
Demand is driven by food prices, population growth, and global trade policies. The profitability of individual operations depends on production efficiency and anticipating market demand. Large operators have some advantages in volume purchasing and efficient use of labor and equipment. Small operators can compete successfully by producing special grades of beef cattle and by controlling costs carefully. The industry is concentrated: the top 5% of farms generate about 75% of revenue.
Top countries in imports include Canada, Mexico, Netherlands, France, and the UK. For exports, Canada, Mexico, the UK, China, and Turkey are the top countries.
US cattle prices are influenced by not only by domestic demand for beef products but also by demand from beef export markets. Concern over diseases such as BSE (bovine spongiform encephalopathy, or mad cow disease) can abruptly restrict exports and thus reduce demand from meat products manufacturers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include raising live cattle and "finishing" cattle on feedlots in preparation for slaughter.
Beef typically is produced from cows (females that have borne at least one calf); steers (castrated males); heifers (females that have never given birth); and bulls under 2 years old. Major breeds include Angus, Charolais, Hereford, Texas Longhorn, and Simmental.
The operations of beef cattle ranchers revolve around breeding cows, feeding cattle, and providing veterinary care. Beef cattle ranchers mainly breed their own animals, with a traditional calving season in the early spring. Cows can produce one calf per year and are either naturally bred by a bull or artificially inseminated by a technician. Cows have a nine-month gestation period. From birth until weaning, calves depend on their mother's milk and forage resources. Calves are typically weaned when they weigh between 400 and 600 pounds and are either retained by the rancher or sold. Weaned calves either go directly to the feedlot for finishing or are fed a high forage diet. Generally calves enter the feedlot phase, where they're transitioned to a high grain ration, at around 800 pounds. Cattle are typically ready for slaughter when they weigh around 1,200 pounds and have been fed a grain-based ration for at least 120 days.
Because the quality of the forage on grazing land varies widely, the animal carrying capacity of land also varies. The actual stocking rate on land is the number of acres per animal unit (typically a cow-calf pair), or the number of 1,000-pound animal units per month (AUM) on a particular piece of land. Depending on the quality of the forage, an animal unit may need from three acres in high-rainfall areas to 40 in arid regions. A higher than recommended stocking rate may reduce the live-weight gain per animal per day, which is typically between 1 and 2 pounds. Ranches often rotate their animals through a number of pastures to prevent overgrazing and soil erosion in any one spot during grazing season. Ranchers may produce or buy harvested forage, typically alfalfa or other hay, to feed their cattle during the winter months.
Veterinary services are needed to help in calving problems, treat illnesses, and provide routine vaccinations to prevent diseases, especially communicable ones. Bovine spongiform encephalopathy (BSE), otherwise known as mad cow disease, can be transmitted by eating meat or byproducts from an infected animal.
Although most ranchers raise cattle on their own land, some may lease private land or have permits to use federal lands. Federal grazing permits are tied to a rancher's “deeded” land and are transferable upon the sale of deeded land. Leased federal land typically is adjacent to a ranch's deeded land.
The global cattle population amounted to over 942 million head in 2023, including about 12.2 million tons of beef and veal produced in the US, according to Statista and the USDA. India, Brazil, the US, China, and the EU are the world's top cattle and beef producers, according to the 2023/2024 Beef Production report by the US Department of Agriculture (USDA). Rising global demand for meat will fuel growth in the cattle ranching industry.
The US cattle ranching industry includes about 750,000 farms with combined annual revenue of about $90 billion.
The industry doesn't include slaughter, processing, or packing operations. Meat processing is covered in the Meat Product Manufacturing profile.
COMPETITIVE LANDSCAPE
Demand is driven by food prices, population growth, and global trade policies. The profitability of individual operations depends on production efficiency and anticipating market demand. Large operators have some advantages in volume purchasing and efficient use of labor and equipment. Small operators can compete successfully by producing special grades of beef cattle and by controlling costs carefully. The industry is concentrated: the top 5% of farms generate about 75% of revenue.
Top countries in imports include Canada, Mexico, Netherlands, France, and the UK. For exports, Canada, Mexico, the UK, China, and Turkey are the top countries.
US cattle prices are influenced by not only by domestic demand for beef products but also by demand from beef export markets. Concern over diseases such as BSE (bovine spongiform encephalopathy, or mad cow disease) can abruptly restrict exports and thus reduce demand from meat products manufacturers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include raising live cattle and "finishing" cattle on feedlots in preparation for slaughter.
Beef typically is produced from cows (females that have borne at least one calf); steers (castrated males); heifers (females that have never given birth); and bulls under 2 years old. Major breeds include Angus, Charolais, Hereford, Texas Longhorn, and Simmental.
The operations of beef cattle ranchers revolve around breeding cows, feeding cattle, and providing veterinary care. Beef cattle ranchers mainly breed their own animals, with a traditional calving season in the early spring. Cows can produce one calf per year and are either naturally bred by a bull or artificially inseminated by a technician. Cows have a nine-month gestation period. From birth until weaning, calves depend on their mother's milk and forage resources. Calves are typically weaned when they weigh between 400 and 600 pounds and are either retained by the rancher or sold. Weaned calves either go directly to the feedlot for finishing or are fed a high forage diet. Generally calves enter the feedlot phase, where they're transitioned to a high grain ration, at around 800 pounds. Cattle are typically ready for slaughter when they weigh around 1,200 pounds and have been fed a grain-based ration for at least 120 days.
Because the quality of the forage on grazing land varies widely, the animal carrying capacity of land also varies. The actual stocking rate on land is the number of acres per animal unit (typically a cow-calf pair), or the number of 1,000-pound animal units per month (AUM) on a particular piece of land. Depending on the quality of the forage, an animal unit may need from three acres in high-rainfall areas to 40 in arid regions. A higher than recommended stocking rate may reduce the live-weight gain per animal per day, which is typically between 1 and 2 pounds. Ranches often rotate their animals through a number of pastures to prevent overgrazing and soil erosion in any one spot during grazing season. Ranchers may produce or buy harvested forage, typically alfalfa or other hay, to feed their cattle during the winter months.
Veterinary services are needed to help in calving problems, treat illnesses, and provide routine vaccinations to prevent diseases, especially communicable ones. Bovine spongiform encephalopathy (BSE), otherwise known as mad cow disease, can be transmitted by eating meat or byproducts from an infected animal.
Although most ranchers raise cattle on their own land, some may lease private land or have permits to use federal lands. Federal grazing permits are tied to a rancher's “deeded” land and are transferable upon the sale of deeded land. Leased federal land typically is adjacent to a ranch's deeded land.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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