This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2003-2005. Permission is granted for use by active AgEdNet.com® subscribers. All other use is prohibited.

STEWART-PETERSON and AGEDNET.COM are registered trademarks of Stewart-Peterson, Inc.

AB110 Supplying Feedsfor Livestock, Dairy,

Poultry and Pets

Business Library

Feed is BIG business!

• Feed is the single largest production expense in U.S. agriculture

• Between $24 billion and $25 billion per year• Most feed for livestock and poultry originates

from farm crops.• Includes grain, hay, silage, and protein-rich by-

products of grains and oilseeds• Includes mixed manufactured feeds, which may

also include added minerals, vitamins, medications and growth stimulants

Who produces and markets feed?

• Nearly two-thirds of manufactured feeds are produced and marketed by the agribusiness companies that make up the feed industry.

• The remainder is ground and mixed by livestock and poultry producers.

• An estimated 6,000 to 7,000 plants in the United States manufacturefeed for producers.

• The largest 200 companiesthat operate these plantsproduce nearly a third ofthe annual tonnage.

Kinds of feed products …

• Feeds for particular animals (poultry, beef cattle, sheep, pets, etc.)

• Feeds for different purposes and life stages (starter feeds, feeds for milking and nursing, growing feeds, finishing rations)

• About 80% of the manufactured feed is a complete product, ready to consume.

• About 20% includes proteinsupplements and otherpremixes that containminerals and vitamins.

Major feed companies …

• Through 1990s most were private firms and publicly traded corporations.

• Recent mergers have added cooperatives.

• Many changes in ownership, products, markets and marketing methods

Using Ralston Purina as an example …

• Founded in 1894• Became nation’s largest feed manufacturer and

distributor• Began nutrition research in 1926• Listed at N.Y. Stock Exchange in 1962• Acquired other food companies and

agribusiness firms• Withdrew from livestock business in 1986• Divided into several businesses in 1993

Other prominent feed agribusinesses …

• Cargill Inc., founded in 1865

• Consolidated Nutrition – founded in 1994 as merger of four firms

• Kent Feeds, Inc.

• Hubbard Milling Co.

• Mooreman Mfg. Co.

Farmer cooperatives …

• Large cooperatives must adjust to changes in agriculture in U.S. and around the world.

• Many mergers, agreements and acquisitions• September 2000 – Farmland Industries joined

with Land O'Lakes to form Land O'Lakes Farmland Feed LLC., the largest feed company in North America

Behind the trends …

• The most dramatic changes have been in the last 10 to 25 years.

• Feed manufacturing began to supply horses.• At one time most farmers had small diversified

farms and bought feed in bags from feed stores in rural towns.

• Today feedlot operators and vertical operations often mix their own feeds.

• Most feed is now delivered in bulk.• Pet foods have become an important market,

requiring mass marketing and advertising.

This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2003-2005. Permission is granted for use by active AgEdNet.com® subscribers. All other use is prohibited.

STEWART-PETERSON and AGEDNET.COM are registered trademarks of Stewart-Peterson, Inc.

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