Page 38 - The Welfare of Cattle

ChaPter 2

economics of Global Cattle Industries, with
Implications for On-Farm Practices

Daniel A. Sumner
University of California Agricultural Issues Center

CONteNtS

Contribution to Economic Activity ..................................................................................................15
Economic Outputs and Preliminary Issues ......................................................................................15
Distribution of Farmed Bovines Across Regions ............................................................................. 16
Distribution of Milk Production and Trade ...................................................................................... 17
Distribution of Bovine Meat Production and Trade ......................................................................... 18
References ........................................................................................................................................19

CONtrIBUtION tO eCONOMIC aCtIVItY

Cattle produce a substantial share of the value of agricultural output globally and in many
regions. Of course, shares vary from year to year as market prices rise and fall, but in higher income
countries and regions, cattle represent almost one-third of the value of farm output. For example, in
the United States, sale of cattle comprises about 18 percent of US farm sales and milk adds another
ten percent (USDA ERS, 2017). In the European Union, cattle output comprises about nine percent
and milk about 20 percent of the value of production (FAO). Developing countries typically have
lower shares of livestock output. But, in India, which is bovine-intensive for its per capita income,
bovine meat (cattle and buffalo) is about seven percent and milk is about nine percent of the value
of agricultural output (FAO). In India, bovines still provide substantial on-farm power for cultiva-
tion and hauling, but I have found no systematic measure of the value of this economic contribution.

eCONOMIC OUtPUtS aND PreLIMINarY ISSUeS

In higher income regions, cattle are used primarily as food-producing animals for milk and
meat. Of course, substantial economic value is also generated from many by-products, primarily
leather from hides, including fertilizer from manure; household goods from fats, hair and collagen;
medicine ingredients from internal organs; and nutritional supplements from bones. In poor regions

15