Anonymous

Halbrook, Steve A.

Thompson, Mary M.

English

Research Papers in Economics

CHOICES
The magazine of food, farm, and resource issues
3rd Quarter 2006 • 21(3) CHOICES 153
A publication of the
American Agricultural
Economics Association
3rd Quarter 2006 • 21(3)
©1999–2006 CHOICES. All rights reserved. Articles may be reproduced or electronically distributed as long as attribution to Choices and the American
Agricultural Economics Association is maintained. Choices subscriptions are free and can be obtained through http://www.choicesmagazine.org.
Overview: The Future of
Animal Agriculture in North America
Walter J. Armbruster, Steve A. Halbrook, Mary M. Thompson, Guest Editors
Animal agriculture in North America is undergoing sig-
nificant change. As new products are developed to meet
changing consumer preferences, new production systems
are being put in place to reduce costs, and contracts are
increasingly replacing open markets and redefining rela-
tionships among stakeholders in the system. Technological
developments have increased productivity and efficiency at
the producer level, and in processing, distribution systems
and marketing. Participants throughout the animal agri-
culture supply chain, from genetics to retail to food service
outlets, are adjusting to ongoing changes which bring
opportunities but also controversy and challenges.
The issues arising from the various factors impacting
a n i m a l  a g r i c u l t u r e  g o  b e y o n d  m a t t e r s  o f  s u p p l y  a n d
demand, cost of production and transportation, and other
economic factors. They include the structure of basic insti-
tutions, customs of trade and social factors that underlie
the production, distribution, transformation, sale and con-
sumption of animal products. These articles reflect the
shifting forces of change, anticipate some of the direction
and impacts, and identify options that will allow farmers
and ranchers, meat processors, food retailers, policy mak-
ers, and consumers to make more informed decisions
about the future.
Farm Foundation led an 18-month project–The Future
of Animal Agriculture in North America.  The goal was to
develop a comprehensive, objective overview of the range
of issues that will shape the industry over the next decade.
This partnership of industry, government agencies, aca-
demics and nongovernment organizations explored the
opportunities and challenges facing North America’s live-
stock sector, the driving forces behind them, and their
potential consequences. Funding for this effort was pro-
vided by industry, government agencies and foundations
throughout North America.
The final report was released in April 2006 and is
available on the Farm Foundation Web page, www.farm-
foundation.org. It was organized around seven Working
Groups headed by academic experts and composed of
industry, government, nonprofit and academic leaders.
More than 150 individuals from Canada, Mexico and the
United States actively participated in the development of
the Working Group reports. The objective was to give all
stakeholders a clear understanding of the current state of
the industry, a glimpse into the future, ideas for change
and their potential consequences, and an inventory of
issues that need further research, industry actions or gov-
ernment policy.
These articles have been prepared by leaders of the
Working Groups. The authors have drawn heavily, but not
necessarily exclusively, on the Farm Foundation report. 
In the first article, we identify a number of cross-cut-
ting issues that will affect the future of animal agriculture
in North America. These are topics on which we need to
Articles in this Theme:
Overview: The Future of Animal Agriculture in
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
The Future of Animal Agriculture in North America. . . . . .155
Economics of Animal Agriculture Production, Processing
and Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Consumer Issues and Demand. . . . . . . . . . . . . . . . . . . . . . . .165
The Global Competitiveness of the North American
Livestock Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171
Environmental Issues in Animal Agriculture. . . . . . . . . . . .177
Community and Labor Issues in Animal Agriculture  . . . . .183
Policies to Protect Food Safety and Animal Health . . . . . .189
Animal Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195154 CHOICES 3rd Quarter 2006 • 21(3)
know more to understand the long-
run competitiveness of the animal
agriculture industry in North Amer-
ica.
Boehlje’s analysis of the econom-
ics of production, processing and
marketing summarizes implications
of consumer demand, cost drivers,
changes in market structure and gov-
ernment policy, and regulation for
competitiveness in the North Ameri-
can livestock industry over the next
decade. This leads to some critical
future challenges and opportunities
that merit further analysis and
research.
Jensen addresses consumer de-
mand and the related forces driving
changes in animal agriculture. Devel-
opments in the production, process-
ing, and distribution system are
designed to meet evolving consumer
demands worldwide. She looks at
how these trends from both sides of
the market may play out. The paper
also examines some policy options
for helping shape the future competi-
tiveness of the industry in North
America.
Rosson et al. look at global com-
petitiveness and trade in the livestock
economy, including a significant
increase in market integration among
the three NAFTA countries. Various
segments of the animal agriculture
industry are affected by different
forces. To improve efficiency of the
North American animal agriculture,
harmonization of policies, programs,
and regulations across NAFTA coun-
tries will be required.  
Abdalla and Lawton address envi-
ronmental issues in animal agricul-
ture associated with new technologies
and restructuring of the production
and marketing system. Resulting pri-
vate disputes and public issues con-
cerning animal agriculture and the
environment are leading to new costs
and benefits. To resolve the complex
issues involved requires increased
understanding and involvement by
all stakeholders. 
Goldsmith and Martin look at
community and labor issues in ani-
mal agriculture, finding them to be
significant but very diverse. The ani-
mal agriculture processing industry
has shifted from urban to rural loca-
tions and relies on substantial num-
bers of immigrants from Latin Amer-
ica to provide labor. The authors
look at community and social
impacts, explore some future options,
and emphasize the need for animal
processors to partner with the com-
munities in which they locate.
Goodwin et al. address policies to
protect food safety and animal
health, noting that these issues are
closely related, yet in some cases,
require separate strategies. The
authors identify a number of possible
policy measures and their implica-
tions for assuring sound food safety
and animal disease prevention sys-
tems to keep North American animal
agriculture prosperous and competi-
tive.
Blandford addresses the increas-
ing role of animal welfare issues in
wealthy countries. There are increas-
ing initiatives in states, as well in the
U.S. Congress, to pass animal welfare
bills. Many of the practices being
questioned are associated with animal
confinement, and there is increasing
interest in developing voluntary stan-
dards within the industry. The
author considers economic impacts
of various approaches and identifies
some options for the future.
Walter J. Armbruster (walt@farm-
foundation.org) is President, Steve A.
Halbrook (steve@farmfounda-
tion.org) is Vice President, and Mary
M. Thompson (mary@farmfounda-
tion.org) is Communications Direc-
tor, Farm Foundation, Oak Brook,
IL.

Overview: The Future of Animal Agriculture in North America

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