Cermaq Competition
Now Viewing Cermaq's competition in: Agriculture Livestock Production
Recent Developments
Request to Reduce US Ethanol Requirements Denied - The EPA denied a request by Texas' governor to reduce federal ethanol requirements for 2008. The governor and several industry groups claim that rising US ethanol output is inflating corn prices, hurting livestock and food producers, and boosting grocery bills. Livestock producers may have benefited if reduced ethanol requirements resulted in lower feed costs.
Rising Feed Costs Drive Changes on Farms - Rising feed costs are forcing some farmers to change the type of livestock they raise, according to Greenwire. Many US farmers are turning to minicattle, livestock that resemble cows but grow only about 3 feet tall and produce proportionately more beef for the amount of grain they eat. Some farmers are breeding minicattle to produce even smaller offspring, called microminis.
US Exports Rising - US exports of livestock and livestock products rose 29.5 percent in the first half of 2008 compared to the same period in 2007. Exports to 11 of the top 15 destinations for US livestock and livestock products rose during the 2008 period. Exports to Canada, the top foreign market of US livestock and livestock products, rose 11.4 percent. Exports to China, second only to Canada, rose 218 percent.
Competitive Landscape
Demand for meat, poultry, and dairy products is driven by domestic food consumption trends. The profitability of individual farms depends on efficient operations. Large companies have advantages in vertically integrated operations and economies of scale. Small operations can compete effectively by supplying local markets, specializing in heritage breeds, or raising humanely treated or hormone-free animals. Average annual revenue per worker for all US livestock and poultry farmers is $100,000.
Agriculture Livestock Production Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US cattle ranching, dairy farming, and poultry, egg, and animal production is forecast to grow at an annual compounded rate of 4.6 percent between 2007 and 2012.
Cattle, Dairy, Poultry and Other Livestock Products Growth Slows and Steadies
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Tied to meat prices
- Need low-cost feed
- Risk: Vulnerable to diseases
Industries Where Cermaq Competes
- Agriculture
- Agricultural Support Activities & Products
- Livestock, Agricultural & Exotic Animal Feed & Services (primary)
- Animal Production
- Agricultural Support Activities & Products
