Livestock industry in transition: Economic, demographic, and biofuel drivers

Livestock production has experienced a major shift toward intensification in recent years. Livestock production today is using much less land than in the past. That trend is expected to continue in the future. Meat production from the most efficient converters of feed, poultry, and pork will grow faster than beef, with poultry being the leader. We expect to see more regional specialization and more international trade in livestock products. The biofuels boom and higher feed prices have slowed growth rates in the world's livestock sector. That effect is expected to diminish as corn ethanol production will not grow significantly in the future. For a number of reasons, the prospects for a return to a more stable equilibrium of supply and demand in crop markets appears to be likely. Therefore, with average weather conditions, we expect to see a return to lower animal feed prices (not the historic lows but not the recent extreme highs either) with a movement to increasing growth rates in animal production and consumption.