AFIA: New research shows feed and pet food makers are vital to US economy

30-Jun-2023 - Last updated on 10-Feb-2024 at 20:18 GMT

A new study, conducted by Decision Innovation Solutions (DIS), on behalf of the American Feed Industry Association (AFIA), estimates that this year the US animal food industry, including indirect and induced effects, will generate $267.1bn in sales.

That figure includes an estimated $98.4bn in value added revenue such as labor income, taxes on production and imports, and other property income, according to the DIS report.

In the US, there are close to 5,650 animal food manufacturing facilities today, producing ruminant, poultry, aquaculture feed and pet food.

The research, said the AIFA, shows that these facilities drive economic growth, not only across the US national economy but also in the counties and states where they are located.

“We’ve always said that animal food manufacturing is at the intersection of plant and animal agriculture, uniting crop farmers and animal producers, but now we see that intersection is actually the main artery in town, driving economic value throughout rural and urban communities,” said AFIA CEO, Constance Cullman.

Despite the elevated level of stress put on the US feed and pet food manufacturing industries over the past few years, from the COVID-19 pandemic to supply chain hurdles to animal disease to high inflation, it is clear, she said, that the industries remain robust and that they are growing.

The study also revealed that the feed and pet food production sectors will employ around 760,000 full- and part-time and contract employees, paying out $55bn n in salaries and employee benefits before year end. “At the local, state and national levels, the industry will file $18.5bn in taxes in 2023.”

Top performing states

The top five states for feed and pet food sales this year will be California, with an estimated $19.5bn; Missouri, with $18.6bn; Texas, with $17.1bn; Iowa, with $16.5bn; and Kansas, with $16.2bn.

The states with the most feed mills included Texas (647), Iowa (376), Minnesota (347), Wisconsin (263) and Pennsylvania (258), whereas the states with the most pet food manufacturing facilities included Pennsylvania (59), Michigan (33), Wisconsin (28), Nebraska (27) and Washington (26).

states in the US with the most feed mills

The research also found that in addition to purchasing the farm-grown crops and other inputs needed to make feed and pet food, the industry generates economic activity up and down the supply chain by utilizing related services and industries including truck and rail transportation services, financial institutions, advertising and more.