Industry Facts

 

Minnesota Beef Industry Facts

 Beef Production in Minnesota:

  • There are approximately 800,000 ranchers and cattlemen in the United States, conducting business in all 50 states and contributing economically to nearly every county in the nation. In the state of MN, there are approximately 15,500 ranchers and cattlemen and 7,200 dairy farmers and 29,000 total farms with cattle.  (Some farms have both dairy and beef.)

  • In 2003, U.S. cash receipts from livestock and livestock product marketing was forecasted to total $98.3 billion – almost half of the total forecasted for all farm cash receipts in 2003 ($202 billion). Total cash receipts from all cattle and calves in MN in 2002 (the latest available) were $866,196,000.

  • In MN, the cattle industry is a family business. 85 percent of cattle businesses have been in the same families for more than 25 years. Nationwide, 80 percent of cattle businesses have been in the same families for more than 25 years; 10 percent for more than 100 years.

  • On Jan. 1, 2004 there were 94.9 million cattle in the United States and 2.470 million in MN. Nationally, that is .5 percent fewer than a year earlier.

  • Total beef production in MN during 2003 was 1,420,800,000 pounds (1,154,000 head of cattle).

  • Total beef production in the United States during 2003 was 26.2 billion pounds (35.5 million head of cattle). In 2003, cattle averaged about 1,234 lbs. before harvest. The 2003 average carcass weight was 746 lbs., which translates into about 522 lbs. of beef.

  • Minnesota ranks 5th nationally in dairy cattle production.

  • Minnesota ranks 7th in total production of red meat.

  • Minnesota ranks 12th nationally in cattle and calves.

U.S. Beef Consumption/Demand:

·         Beef is the number-one protein in America according to 2003 USDA consumption data, and the demand for beef continues to grow.

 

·         In 2003, demand increased 6 percent according to the beef demand index, which considers the rate of beef consumption and the price consumers are willing to pay for beef products. America’s demand for beef has increased more than 16 percent since 1998.

 

·         The bottom line is consumers are willing to pay more for the beef they love. Consumer spending on beef has grown about $16 billion compared to the 1990s, according to Cattle-Fax.

 BSE and the U.S. Beef Industry:

·         Even though nearly one-quarter of the U.S. export market value has been recovered, the U.S. beef industry has experienced significant loss during the XX months since the December 2003 U.S. diagnosis of bovine spongiform encephalopathy (BSE). I

  •   Industry experts conservatively estimate BSE has cost the U.S. cattle industry between $2 and $2.3 billion dollars in lost export value on beef, beef variety meats, hides and tallow.  

U.S. Beef Exports:

·         The United States traditionally exports about 10 percent of production but when the first U.S. case of BSE was diagnosed in an imported Canadian cow on December 23, 2003, most major export markets closed.

 ·         In 2003, U.S. beef and beef variety meat exports totaled 1.28 million metric tons valued at $3.86 billion. Traditional primary export markets Japan, Mexico, the Republic of South Korea and Canada accounted for nearly 83 percent of export volume and 88 percent of export value in 2003.

 ·         Industry experts agree the total value of the U.S. beef and beef variety meat export market equates to approximately $15/cwt. or 12 percent of an $85/cwt. fed steer. 

 ·         As of June 1, 2004, the United States had re-established beef exports with countries that in 2003 accounted for $1.2 billion or 31 percent of the record $3.86 billion in beef and beef variety meat exports in 2003. With nearly one-quarter of trade re-established, roughly $3/cwt. (live weight) of the $15/cwt. in export value has been returned to the market place.

National statistics as of July 7, 2004 

Internal notes:

·         Please check www.bseinfo.org for updated information.

·        Contact the USDA Agriculture Statistics Department (usually housed within the state Department of Agriculture) to customize this fact sheet for your state. 

Early History

Cattle were brought to Minnesota in the early 1820's. Early records show that cattle were driven from St. Louis, Missouri to Fort Snelling during the summer of 1823. The cattle herd, in those early days, was slow to expand because of inadequate feed and the harsh winter. In 1826 a young French-Canadian named Alexis Bailly (who later founded Hastings) was sent to the Selkirk Colony at Fort Garry (near Winnipeg, Manitoba) to acquire cattle to replenish the herd at Fort Snelling.

Minnesota's first cattle were used primarily for milk production and to serve as draft animals. Beef became available only when the animal no longer could produce milk or work in the fields. Minnesota's cattle industry began to grow in the 1860's when large amounts of land became available for settlement after the Treaties of Mendota and Traverse des Sioux.

The early cattle were of Shorthorn or Durham breeding which had origins in England. They were red or brindle with some roans. These cattle helped to open Minnesota's frontier. They provided milk and butter for the families and income from the sale of homemade butter to sell in exchange for necessities of the home and farm. They were the main source of farm work, power and transportation in the early days as the price of horses was relatively high. As the supply and popularity of draft horses increased, cattle herds expanded and surplus males were used to produce beef.

By 1880, a few purebred dairy and beef cattle herds had been established in Minnesota. The beef breeds were Shorthorn (Durham), Hereford and Aberdeen Angus. Several prominent Minnesotans including James J. Hill, founder of Burlington Northern, imported purebred cattle from Europe and the East Coast to improve local herds and expand animal agriculture to the far corners of Minnesota.

The Beef Industry Today

The cattle industry has helped to make Minnesota one of America's leading agricultural states. Animal agriculture, especially beef and dairy production, has provided markets for our state's abundant grain and forage production.

Today there are cattle on about 30,000 Minnesota farms. There are 15,800 farms that have beef cows and 9,100 with dairy cows. Minnesota ranks 10th in the U.S. for cattle and calves. The value of Minnesota's cattle and calf herd is estimated at $1.9 billion, which makes it by far the largest segment of the state's animal agriculture. Stearns County, in central Minnesota, leads the state in total cattle numbers with over 183,500 head. Nobles County, in southwest Minnesota, is the leader in cattle and calves on feed with nearly 14 thousand head.

Minnesota's beef industry has a strong family farm orientation. The average cattle farm in Minnesota is relatively small by national standards. While the size of Minnesota's farms has increased, the average farmer still only operates about 370 acres.

Family farms have been passed down through as many as four and five generations. In fact, over 6,000 Minnesota farms have been in the same family for a century or more. Minnesota's cattle producers are committed to conserving and caring for the land in order to pass the tradition onto future generations. While Minnesota has some of the most fertile soil in the U.S., there are hundreds of thousands of acres of hilly and rocky land that is not suitable for crop production. By keeping this fragile soil in pasture for cattle grazing, farmers are practicing soil conversation and preventing valuable soil loss through erosion.

© 2004  Minnesota Beef Council