Minnesota animal agriculture sector is growing, says report

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The Minnesota Livestock Industry Benchmark Report released this week found that Minnesota’s animal agriculture industry is substantial and continues to create significant economic value to the state.

Animal agriculture provides nearly $8 billion in total direct economic value added and supports nearly 35,000 jobs in direct employment, as well as many thousands more in indirect employment. Additionally, the study revealed that Minnesota has experienced growth in the economic impact of the industry since 2002.

“The most recent analysis of the state’s animal agriculture sector shows that the industry continues to create value by serving as an economic engine for the State," said Daryn McBeth, President of the Minnesota Agri-Growth Council. “Animal agriculture employs thousands of Minnesotans, in rural communities in particular, and contributes billions in revenue annually. There is no question that the strength of this industry is vital to Minnesota’s economic health.”

The new analysis, produced by the Minnesota Agri-Growth Council and the University of Minnesota, compared data from 2010 with measurements recorded in 2003, the first time an economic impact analysis was commissioned. Other key findings include:

• Minnesota is poised to become the No. 2 producer of pork in the country.Pork production has experienced the greatest growth in economic impact – nearly double 2002 numbers – at $2.35 billion.

• Minnesota is the No. 1 producer of turkeys in the United States.The economic impact from turkey production is up to $807 million, a significant climb from $507 million in 2002.

• Productivity in Minnesota’s dairy production has improved, and economic activity related to production has stabilized even as the inventory of dairy cows has decreased.Economic impact from dairy production— excluding any dairy used in the manufacturing process—has grown by more than $27 million since 2002 to $3.27 billion. Dairy contributes 14,840 Minnesota jobs in farming, processing and feed manufacturing.

• For the first time, economic impact from beef now tops $1 billion. Minnesota has moved up the ranks since 2002, now ranked No. 9 in cattle on feed and No. 25 in beef cow inventories.

• Minnesota ranks No. 7 in the country in egg production. Two of the top egg companies are headquartered in Minnesota.

Compared to other states, Minnesota is an animal agriculture leader and has opportunities to expand production and surpass its competitors in some sectors, but challenges remain.

• Price driving increases in the value of animals but not necessarily increases in production calls into question the system’s long-term health.

• Notable unknowns exist, such as if dairy production will continue to shift back to the Midwest.

• The lagging worldwide demand for beef and significant competition from other counties may limit future growth opportunities for this sector as a whole.

Still, growth opportunities in the world market are strong. Minnesota’s production trends in terms of world consumption are already positive for some livestock sectors, including dairy, pork and poultry. Consumption and income growth in developing countries is fueling further opportunities for Minnesota’s animal agriculture sector to increase its production scale and value.

“Minnesota has deep roots in multiple livestock sectors, and our increasing interconnectivity combined with global and domestic consumer behavior and trends has presented opportunities for expansion despite industry challenges,” added McBeth. “Overall, the latest industry benchmark report tells us that Minnesota is positioned for continued success in animal agriculture. The next step is continuing to develop policies and practices that will ensure its longevity and future growth.”

About the Minnesota Agri-Growth Council:The Minnesota Agri-Growth Council is an advocate for the state’s food and agriculture industry. Founded in 1968, the Council is a nonprofit, nonpartisan organization that represents the shared interests of its 200-plus members, which include food and agriculture businesses, organizations and producers, as well as the service industries that support them.

To obtain a copy of the complete study and to view methodology details, go to www.agrigrowth.org/pdf/FullLivestockReport2012.pdf

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