ABSTRACT
This chapter outlines the situation of the livestock industry in relationship to supply and demand, discusses the economic environment in which the industry must operate, and speculates on what the future may hold for the US livestock industry. The economic well-being of the livestock industry is dependent upon a multitude of complex factors that could threaten to disrupt the delicate balance between supplies and demand for meat products. But when the industry is buffeted by what economists refer to as "exogenous shocks," the resulting uncertainty and volatility can completely disrupt the economics of livestock production. The economic environment for the livestock industry cannot be separated from the general economic climate in the country, or from that of the whole world. Domestic farm policies also can profoundly affect the livestock industry. Without a doubt, livestock producers bore a major portion of the cost of the Payment-in-Kind program for 1983 crops in this country.
