ARLINGTON, VA. — The US animal feed and pet food manufacturing industries are important drivers of economic activity, with a total contribution of $267.1 billion in sales, $98.4 billion in value added revenue and $18.5 billion in local, state and federal taxes, according to new research from the American Feed Industry Association (AFIA).
In addition, the total animal food industry, including indirect and induced effects, provided $55 billion in labor income and 759,596 jobs. In terms of direct contribution, the industries provided $18.8 billion in value added revenue, $85.2 billion in sales and $3.7 billion in local, state and federal taxes.
![AFIA's research on how much the animal food industry contributes to the US economy](/ext/resources/Articles/2023/06%20Jun/063023_AFIA-research_Embedded.jpg)
“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 Constance Cullman, president and chief executive officer of the AFIA. “Despite the stresses put on the animal food industry over the past few years, from the COVID-19 pandemic to supply chain hurdles to animal disease to high inflation, it is clear that it is stronger than ever before and growing.”
The economic contribution study was conducted by Decision Innovation Solutions (DIS), an economic research and analysis firm. It is an update to a previous analysis of the economic contribution of the industries in 2016.
The 83-page report showed that the top five states for feed and pet food sales this year will be California, with an estimated $19.5 billion; Missouri, with $18.6 billion; Texas, with $17.1 billion; Iowa, with $16.5 billion; and Kansas, with $16.2 billion.
The top five congressional districts across all economic measures this year will be Kansas-02, Texas-13, Iowa-04, Nebraska-03 and Missouri-07, which are districts with high levels of livestock or poultry production and are home to many feed mills and pet food manufacturing facilities.
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). Missouri employs the most animal food manufacturing employees with over 54,350, followed by California, Texas, Iowa and Pennsylvania.
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.
Learn more in the AFIA’s full report here.
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