USITC Publication 3275

January 2000

OFFICE OF INDUSTRIES

U.S. International Trade Commission

Washington, DC 20436

Animal Feeds
UNITED STATES INTERNATIONAL TRADE COMMISSION

This report was prepared principally by

Karl Rich

Agricultural Crops Branch 

Agriculture and Forest Products Division

Vern Simpson

Robert A. Rogowsky

Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

Director of Operations

Director of Industries

COMMISSIONERS

Lynn M. Bragg, Chairman

Marcia E. Miller, Vice Chairman

Deanna Tanner Okun

Jennifer A. Hillman

Stephen Koplan

Thelma J. Askey
OMB No.: 3117–0188

ITC READER SATISFACTION SURVEY

Industry and Trade Summary: Animal Feeds


  
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UNITED STATES

INTERNATIONAL TRADE COMMISSION

WASHINGTON, DC 20436

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ATTN:

OFFICE OF INDUSTRIES

ITS: Animal Feeds
 

1

 The information and analysis provided in this report are for the purposes of this report only. 

Nothing in this report should be construed to indicate how the Commission would find in an

investigation conducted under statutory authority covering the same or similar subject matter.

i

PREFACE

In 1991 the United States International Trade Commission initiated its current Industry and

Trade Summary series of informational reports on the thousands of products imported into

and exported from the United States. Each summary addresses a different

commodity/industry area and contains information on product uses, U.S. and foreign

producers, and customs treatment. Also included is an analysis of the basic factors affecting

trends in consumption, production, and trade of the commodity, as well as those bearing on

the competitiveness of U.S. industries in domestic and foreign markets.1

This report on animal feeds covers the period 1994-98. Listed below are the individual

summary reports published to date on the agriculture and forest product sectors.

USITC

publication Publication

number date Title

2459 November 1991 ........... Live Sheep and Meat of Sheep

2462 November 1991 ........... Cigarettes

2477 January 1992 ............. Dairy Produce

2478 January 1992 ............. Oilseeds

2511 March 1992 .............. Live Swine and Fresh, Chilled, or

Frozen Pork

2520 June 1992 ................ Poultry

2544 August 1992 .............. Fresh or Frozen Fish

2545 November 1992 ........... Natural Sweeteners

2551 November 1992 ........... Newsprint

2612 March 1993 .............. Wood Pulp and Waste Paper

2615 March 1993 .............. Citrus Fruit

2625 April 1993 ............... Live Cattle and Fresh, Chilled, or

Froze Beef and Veal

2631 May 1993 ................ Animal and Vegetable Fats and Oils

2635 June 1993 ................ Cocoa, Chocolate, and Confectionery

2636 May 1993 ................ Olives

2639 June 1993 ................ Wine and Certain Fermented Beverages

2693 October 1993 ............. Printing and Writing Paper

2702 November 1993 ........... Fur Goods

2726 January 1994 ............. Furskins

2737 March 1994 .............. Cut Flowers

2749 March 1994 .............. Paper Boxes and Bags

2762 April 1994 ............... Coffee and Tea

2859 May 1995 ................ Seeds
ii

PREFACE—Continued

USITC

publication Publication

number date Title

2865 April 1995 ............ Malt Beverages

2875 May 199 .............. Certain Fresh Deciduous Fruits

2898 June 1995 ............. Certain Miscellaneous Vegetable

Substances and Products

2917 October 1995 .......... Lumber, Flooring, and Siding

2918 August 1995 ........... Printed Matter

2928 November 1995 ........ Processed Vegetables

3015 February 1997 ......... Hides, Skins, and Leather

3020 March 1997 ........... Nonalcoholic Beverages

3022 April 1997 ............ Industrial Papers and Paperboards

3080 January 1998 .......... Dairy Products

3083 February 1998 ......... Canned Fish, Except Shellfish

3095 March 1998 ........... Milled Grains, Malts, and Starches

3096 April 1998 ............ Millwork

3145 December 1998 ........ Wool and Related Animal Hair

3148 December 1998 ........ Poultry

3171 March 1999 ........... Dried Fruits Other Than Tropical
iii

CONTENTS

Page

Preface ..................................................................... i

Abstract ................................................................... 1

Introduction .............................................................. 3

Overview of animal feed products ....................................... 4

Ingredient feeds ............................................................. 4

Roughages and silages ........................................................ 8

Compound feeds and pet foods ................................................. 8

U.S. industry profile ....................................................... 9

Industry structure ........................................................... 9

Number, concentration, and geographic distribution of firms ....................... 12

Number and level of concentration of firms ................................. 12

Geographical distribution of firms ........................................ 13

Employment, earnings, and productivity ...................................... 14

Marketing methods, integration, distribution, and pricing practices ................... 16

U.S. Government programs and regulations .................................... 19

Domestic regulations .................................................. 19

Export promotion programs ............................................ 20

U.S. market .............................................................. 21

Consumer characteristics and factors affecting demand .............................. 21

Consumption .............................................................. 22

Consumption trends .................................................... 22

Conditions of competition between foreign and U.S. animal feed products ............. 22

Production ................................................................ 23

U.S. trade ................................................................. 24

Overview ................................................................ 24

U.S. imports .............................................................. 25

Principal imports suppliers and import levels ................................... 25

Products imported .................................................... 25

Import levels and trends ............................................... 25

Principal import suppliers .............................................. 26

U.S. trade measures ..................................................... 26

Tariff and nontariff measures ........................................... 26

U.S. Government trade-related investigations ................................ 27
iv

CONTENTS–Continued

Page

U.S. trade–Continued

U.S. exports .............................................................. 28

Principal markets and export levels .......................................... 28

Products exported .................................................... 28

Export levels and trends ............................................... 28

Principal export markets ............................................... 29

Foreign trade measures ................................................... 30

Tariff measures ...................................................... 30

Nontariff measures ................................................... 32

Foreign industry profile .............................................. 32

Overview of world market .................................................... 32

Market profiles ............................................................ 33

European Union ........................................................ 33

China ................................................................ 33

Japan ................................................................ 34

Brazil ................................................................ 35

Canada ............................................................... 35

Mexico ............................................................... 36

Appendixes

A. Explanation of tariff and trade agreement terms ................................... A-1

B. Statistical tables .......................................................... B-1

Figures

1. Structure of the U.S. animal feed industry ........................................ 10

2. Number of employees per establishment in the compound feed industry .................. 15

3. Number of employees per establishment in the pet food industry ........................ 16
1

ABSTRACT

This report addresses trade and industry conditions for the animal feed industry for the

period 1994-98. 

C Animal feed products include (1) ingredients, derived from the processing of

grains, oilseeds, meat, vegetable, and fish products; (2) roughages, such as hay

and grasses; (3) compound feeds, which combine ingredient feeds; and (4) pet

foods. U.S. producers of animal feed products are competitive in foreign markets

in certain types of animal feed products, particularly pet foods, soybean meal, and

corn gluten. Commercial producers of compound animal feeds in the U.S. typically

produce for the local market. Most animal feed products have low levels of import

penetration.

C U.S. production of primary animal feeds, including complete feeds, supplements,

and premixes, rose by 4 percent during 1994-98. Production of protein meal

ingredients, such as soybean meal, rose by 21 percent during this period. In the

compound animal feed industry, there has been a trend towards vertically

integrated mills, with livestock producers owning feed mills and producing animal

feed for their own operations.

C The United States ran a $3.6 billion trade surplus with foreign trade partners in

1998. Major export markets include the European Union, Japan, Canada, China,

and Mexico. Almost two-thirds of U.S. animal feed imports comes from Canada

and consists of pet food, compound feeds, and canola meal. Exports and imports

of animal feed each increased by 24 percent during 1994-98. U.S. tariffs on animal

feed products are low, with almost 57 percent of U.S. imports entering duty-free.

C The United States is the largest producer of compound animal feeds in the world.

Other major producers include the European Union, China, Brazil, and Japan. The

animal feed industry has been growing rapidly in China and Brazil. Foreign tariffs

are generally low, though high tariffs exist for products that contain ingredients

with government supports, such as milk or starch.

C Purchasers of animal feed products include commercial feedlots, specialty stores,

households, and bakers and millers. On-farm mixing of ingredient feeds has

become increasingly common. Pet food consumers are increasingly purchasing

premium and superpremium brands.

 

1

 Although the information on wheat gluten in this summary focuses mainly on feed uses of

wheat gluten, the data provided cover all forms of wheat gluten. Data on wheat gluten for baking

purposes was excluded from the recent publication USITC, Milled Grains, Malts, and Starches,

USITC publication 3095, Mar. 1998.

 

2

 USITC, Wheat Gluten, Investigation No. TA-201-67, USITC publication 3088, Mar. 1998,

p. II-5.

3

INTRODUCTION

This summary covers animal feed products that are found in parts of chapter 12 and all of

chapter 23 of the Harmonized Tariff Schedule (HTS) of the United States. It includes

compound feeds, pet foods, and the residues, meals, flours, brans, and wastes that result from

the milling of grains or crushing of oilseeds, such as soybean meal, corn gluten, and wheat

gluten. Feeds derived from meat and fish are also included, as are roughage and forage crops,

such as alfalfa, straw, hay, and rutabagas that are used for animal feeding purposes. Although

wheat gluten1 is primarily used as an input to the baking industry, about 15 to 20 percent is

used in the pet food industry,2 which merits its inclusion in this summary. An explanation of

tariff and trade agreement terms can be found in appendix A, while statistical tables are in

appendix B.

The U.S. animal feed industry is a relatively large industry in the United States, though its

exact size is difficult to estimate since the available data excludes production information by

farms that mix their own feed. In the 1997 Economic Census, the U.S. Census Bureau

estimated the value of compound feed shipments by commercial feed mills (those that combine

feed ingredients, such as corn and soybeans) at almost $18 billion in 1997, while the value of

pet food shipments were estimated at $8.3 billion. Shipments of certain ingredient feeds are

also sizable, with crop-year 1997 estimates for soybean meal of $7.1 billion and corn gluten

meal and feed of $1.1 billion. The United States exported $4.3 billion of animal feed products

in 1998. Major exported products include pet foods, soybean meal, and corn gluten. In

general, however, the animal feed industry is not geared towards export markets. Rather, most

animal feed production is consumed in the United States. Imports, which totaled $759 million

in 1998, come primarily from Canada and consist of pet foods, compound feeds, and canola

meal.

There has been increased concentration in the animal feed industry, which mirrors a similar

trend towards consolidation in the livestock industry. The animal feed industry has also been

affected by an increased incidence of on-farm feed mixing and integrated feed mills. On-farm

mixing by livestock producers has reduced demand for complete feeds (i.e. those that serve

as a complete ration) and has forced producers to diversify into other products. Integrated feed

mills are mills constructed by livestock producers (particularly broiler producers) that produce

feed for their own operations.

The U.S. animal feed industry is regulated by the Food and Drug Administration (FDA),

which monitors the products and label claims used by the industry. Medicated feeds are

subject to added restrictions. The FDA recently imposed restrictions on the feeding of

ruminant-based feeds to ruminants in the wake of the “mad-cow disease” scare in Europe.

Aside from FDA regulations on animal feed products, government involvement in the industry
 

3

 Whole grains, such as corn, wheat, and barley, are excluded from the scope of the summary

but are nonetheless included in the discussion on basic types of feeds to provide background on

the industry. 

4

is fairly limited. Government programs in the U.S. feed industry concern the provision of

funds for export promotion and facilitation. In recent years, the pet food industry has

benefitted from the export promotion funds of the U.S. Department of Agriculture (USDA)

for market development in Japan, Taiwan, and Mexico. A number of animal feed products are

also included in the General Sales Manager (GSM 102/103) credit guarantee programs of the

USDA, which provides credit guarantees for exporters.

On a tonnage basis, the U.S. animal feed industry is the largest in the world. In 1998, the

industry publication Feed International estimated total U.S. commercial production of

compound animal feed and pet food at 140 million metric tons. The European Union (EU)

produced 115 million metric tons, followed by China (55 million metric tons), Brazil (29

million metric tons), and Japan (23 million metric tons). There has been significant growth in

production from the feed industries of China and Brazil in recent years, while production in

the feed industries of the EU and Japan has generally remained flat.

OVERVIEW OF ANIMAL FEED

PRODUCTS

Animal feeds can be divided into four major groups. Animal feed ingredients are those derived

from the processing of grains, oilseeds, meat, vegetables, fish, and other products. Roughages,

such as hay and grasses, serve as a source of fiber for ruminant animals, such as cows,

horses, and sheep. Compound feeds provide some or all of the nutritional requirements for a

particular animal in one mixture. These also include supplements, minerals, vitamins, and

other additives. Pet foods are analogous to compound feeds for livestock, though these almost

always provide a complete ration for pets in one mixture. The following sections provide

greater detail on the characteristics and production processes for the feeds that constitute

ingredients, roughages, compound feeds, and pet foods.

Ingredient Feeds

Ingredient feeds can be divided into two subcategories: energy feeds and protein feeds. Energy

feeds consist of staple grain and vegetable crops of varying degrees of refinement. These

include whole grains3 and vegetables, such as corn, wheat, barley, oats, sorghum, and

potatoes, as well as residues from milling and other processes, including wheat bran, wheat

middlings, corn cobs, rice bran, groats, and dried beet pulp. The most commonly used energy

feed is corn, which represents roughly 80 percent of the feed grains fed to animals in the

United States. Over three-quarters of the corn grown in the United States is used for feed

purposes, with much of the feeding done on-farm. Corn produces the highest yields of any feed

grain (in terms of digestible energy per acre) and is especially important in the diets of swine
 

4

 D.C. Church and Richard O. Kellems, “High-Energy Feedstuffs,” ch. in Livestock Feeds and

Feeding, eds. Richard O. Kellems and D.C. Church (Upper Saddle River, NJ: Prentice Hall,

1998), p. 113.

 

5

 Mark S. Ash, Animal Feeds Compendium, USDA, Economic Research Service, Agricultural

Economic Report No. 656, May 1992, p. 22.

 

6

 Peter R. Cheeke, Applied Animal Nutrition: Feeds and Feeding, 2d ed. (Upper Saddle River,

NJ: Prentice Hall, 1999), p. 39.

 

7

 D.C. Church and Richard O. Kellems, “Feed Preparation and Processing,” ch. in Livestock

Feeds and Feeding, eds. Richard O. Kellems and D.C. Church (Upper Saddle River, NJ: Prentice

Hall, 1998), p. 192.

 

8

 Cheeke, Applied Animal Nutrition, p. 301.

 

9

 Church and Kellems, “Feed Preparation and Processing,” p. 195.

 

10 Ibid., pp. 194-195.

 

11 USITC staff interview with K. Harmston, Lab Manager, Manna Pro, Fresno, CA, Sept. 14,

1999.

 

12 Tilden Wayne Perry, Arthur E. Cullison, and Robert S. Lowrey , Feeds & Feeding, 5th ed.

(Upper Saddle River, NJ: Prentice Hall, 1999), p. 172.

 

13 Cheeke, Applied Animal Nutrition, p. 53 and Gary L. Cromwell, “Feeding Swine,” ch. in 

Livestock Feeds and Feeding, eds. Richard O. Kellems and D.C. Church (Upper Saddle River,

(continued...)

5

and poultry.4 Other energy feeds, such as sorghum and wheat, can be used to replace some or

all of the corn in feeding rations. Sorghum is typically used in areas where corn does not grow

as well, such as the Southern Plains and Southwest, and is used by beef cattle in these areas.5

Sorghum can also be used in swine and poultry diets. Although wheat has a higher protein and

amino acid content than corn, high wheat prices relative to other grain prices generally

preclude the utilization of wheat as a feed grain.6 Other major ingredient feeds include barley,

oats (for horses and cattle), rye, and triticale.

Feed grains can be processed in a variety of ways. Grinding is the most common approach

used for on-farm feeding. A hammer mill grinds the grain through metal screens of varying

sizes depending on the level of refinement desired for a particular animal.7 Another approach,

more typically adopted by commercial feed mills, involves the pelleting of feed grains. Pellets

are created by grinding feed through a chamber with holes (called a die), which subsequently

cut the feed product into varying sizes.8 Pellets are particularly utilized in swine and poultry

feeds.9 Flakes can be generated by the steam-rolling and steam-flaking of feed grains, which

involves subjecting the feed grain to steam and passing it through a roller to produce the

flakes. Steam-flaked grains differ from steam-rolled grains in that the grains are steamed for

a greater amount of time and are subjected to corrugated rollers to produce a flatter flake.10

Flakes are useful in promoting weight gain, since it is easier for the animal to break down the

starch in a feed in that form.11 Other means of processing grains for feed use include soaking,

extruding, and roasting.

Energy feeds other than whole grains include residues obtained from the processing of various

foods. For example, a number of byproducts arise from the processing of wheat into flour,

including wheat bran, wheat middlings, wheat mill run, wheat shorts, and red dog. Wheat bran

is the outer coat of the wheat kernel, while wheat middlings are a mixture of bran, flour, germ,

and other wheat byproducts.12 Wheat shorts are similar to middlings, but typically contain

more flour, and wheat mill is a blend of wheat middlings and wheat bran. Wheat byproducts

are generally used for horses, cows, and beef cattle, though middlings can also be used in

small amounts for swine and poultry.13 In addition, milk byproducts, such as dried whey, are
 

13 (...continued)

NJ: Prentice Hall, 1998), p. 366.

 

14 Ash, Animal Feeds Compendium, p. 101.

 

15 Ibid., p. 105.

 

16 Ibid., p. 105 and Cheeke, Applied Animal Nutrition, p. 54.

 

17 Perry, Cullison, and Lowrey, Feeds & Feeding, p. 185.

 

18 Gary L. Cromwell, “Feeding Swine,” p. 367.

 

19 Ash, Animal Feeds Compendium, pp. 33-34.

 

20 Ibid., pp. 43-44.

 

21 Gary L. Cromwell, “Feeding Swine,” ch. in Livestock Feeds and Feeding, eds. Richard O.

Kellems and D.C. Church (Upper Saddle River, NJ: Prentice Hall, 1998), p. 368.

 

22 Perry, Cullison, and Lowrey, Feeds & Feeding, p. 189.

 

23 Cheeke, Applied Animal Nutrition, p. 95.

 

24 Ibid., p. 96.

6

used as milk replacers for young animals, particularly beef cattle, veal cattle, dairy cattle,

swine, and poultry. The primary byproduct feed from the dry milling of corn is hominy feed,

a mixture of bran, germ, and flour which contains more protein and fiber by weight than

corn.14 Rice millfeeds include rice bran and rice mill byproducts, including bran, hulls, and

grains.15 Although rice millfeeds are mainly used in dairy cattle rations in the United States,

they are an important animal feed for poultry in Southeast Asia.16 Beet pulp and citrus pulp

arise as byproducts from the processing of sugar beets and citrus fruits (mainly oranges and

grapefruits), respectively. 

A number of major protein meals are derived from the processing of oilseeds. The most

commonly used protein meal is soybean meal, which constitutes more than two-thirds of the

protein feed given to livestock.17 Soybean meal is the major source of protein for

nonruminants, particularly swine and poultry, and is valued for its content of a number of

important amino acids, such as lysine, tryptophan, and threonine.18 Soybean meal is marketed

at 44-percent and 49-percent protein levels, with the main difference being that the 44-percent

meal adds the hulls back to the soybean meal, while the other does not. The 49-percent-meal

variety is normally fed to swine and poultry, given its lower fiber content.19 Other oilseed

meals used for feeding purposes are generally cheaper than soybean meal, but are lower in

protein and higher in fiber. As a result, they are generally used for feeding ruminants, though

they can replace part of the soybean meal ration in the diets of swine or poultry. Cottonseed

meal is the second-most important protein feed used in the United States. It is mainly used by

beef cattle in feedlots, but can also be used in the feeding of fish, including catfish, salmon,

and trout.20 Consumption by poultry and swine is limited by the presence of the compound

gossypol, which can cause the discoloration of yolks in poultry eggs and toxic reactions in

large amounts.21 The use of canola meal, an important protein feed in Canada derived from

rapeseed, has increased in the United States.22 Like cottonseed meal, it is used mainly for

feeding cattle. A number of other minor oilseed meals are used as supplemental protein

sources for cattle, including linseed meal, sunflower meal, safflower meal, and peanut meal.

Linseed meal is used for show animals, particularly horses and cattle.23 Peanut meal use is

relatively small, given the limited amounts available for meal and concerns over aflatoxin

content.24

Oilseed meals are the byproduct of the solvent-extraction of oilseeds. Oilseeds are first dried

and cleaned, then dehulled and cracked, after which the fragments are separated, heated, and
 

25 Ash, Animal Feeds Compendium, pp. 33 and 36.

 

26 Cheeke, Applied Animal Nutrition., p. 87.

 

27 Jerry C. Weigel, Dan Loy and Lee Kilmer, Feed Co-Products of the Dry Corn Milling

Process, 1997, p. 1.

 

28 Ibid.

 

29 Ash, Animal Feeds Compendium, p. 82.

 

30 Cheeke, Applied Animal Nutrition, p. 106.

 

31 Weigel, Loy and Kilmer, Feed Co-Products of the Dry Corn Milling Process, p. 6.

 

32 Ash, Animal Feeds Compendium, p. 66.

 

33 Perry, Cullison, and Lowrey, Feeds and Feeding, p. 182.

 

34 Ash, Animal Feeds Compendium, p. 66.

 

35 Ibid.

7

rolled through a roller mill to produce flakes.25 Oil is extracted through the use of a chemical

solvent mixed with the flakes that dissolves the oil. The flakes are then toasted and ground to

make the meal. Oilseed meals can also be processed by way of a mechanical expeller, which

extracts the oil with a revolving screw. These methods can be combined (prepress solvent

extract), whereby part of the oil is removed with an expeller and the residual with a chemical

solvent.26

Corn gluten meal and corn gluten feed are both byproducts of wet corn milling. Products from

the wet milling of corn are used in the production of starch and high-fructose corn syrup. The

wet milling process hydrates the grain to remove the starch, which is then converted into other

products.27 The dry milling of grain for alcohol, by contrast, uses the whole kernel in the

fermentation process.28 Corn gluten meal contains only the gluten from corn, whereas corn

gluten feed includes the bran, germ, and other residues.29 Corn gluten meal has a much higher

protein level, with a range between 40 percent and 60 percent, while corn gluten feed has a

protein level of roughly 21 percent to 23 percent. Both types of feed are typically used in beef

and dairy cattle rations as protein supplements. Small amounts can be used in pig and poultry

rations. 

Brewers and distillers dried grains arise from the fermentation of grain products, whereby the

grain product (typically corn or barley) that remains from the fermentation process is dried

and ground. Both byproducts have low protein levels relative to soybean meal, though brewers

grains are higher in fiber.30 Both types of ingredients are used in the feeding of beef and dairy

cattle. Distillers grains can also be used in limited amounts for poultry and swine, though the

fiber content and lack of essential amino acids limits the use of distillers grains as a major

protein supplement for these animals, however.31

Meat and bone meal are produced from various byproducts of the meat industry. These

byproducts are cooked until the moisture is removed, then drained and ground into a meal.32

Tankage refers to meat and bone meal that uses steam pressure to remove the moisture from

the meat products.33 Meat and bone meal is typically high in protein, with protein levels over

50 percent, while tankage has an even higher protein range of 55 percent to 60 percent.34

Poultry and swine are the main consumers of meat and bone meal, as it is a good source of

protein, amino acids, and vitamins.35 The FDA bans the consumption of ruminant-based meat

meals to ruminants over concerns about bovine spongiform encephalopathy (BSE), also

referred to as “mad cow disease” (See the government regulations section later in the

summary).
 

36 Ibid., pp. 73-74.

 

37 Ibid., p. 78.

 

38 Cheeke, Applied Animal Nutrition, p. 181.

 

39 Ash, Animal Feeds Compendium, p. 16.

 

40 Dennis A. Shields and Allen Baker, “The U.S. Hay Market: Higher Prices in 1996/97,”

Agricultural Outlook, Number 236, Nov. 1996, p. 11.

 

41 Perry, Cullison, and Lowrey, Feeds & Feeding, p. 198.

 

42 Ibid., p. 199.

 

43 Domenick J. Castaldo, “The North American Feed Industry,” ch. in Feed Manufacturing

Technology IV, ed. Robert R. McEllhiney (Arlington, VA: American Feed Industry Association,

Inc., 1994), p. 14.

8

Fish meal is derived from the processing of whole fish or the byproducts of fish used in the

food industry. The fish is first cooked, then pressed to remove the oil. To create the meal, fish

residues are dried and ground with a hammer mill, with antioxidants added to prevent

rancidity.36 Fish meals are high in protein (generally marketed at the 65 percent level) and are

used primarily in poultry rations, with secondary consumption by young swine and fish.37

Roughages and Silages

Roughages are feeds that are derived from forages, such as legumes and grasses. Roughages

are consumed by livestock through the grazing of forages or through the transformation of

forages into hay or silage. Hay is generated by air-drying forage crops to a moisture level of

around 15 percent.38 Silages are forages that have been anaerobically fermented, which allows

for greater nutrient retention and enhanced storage life.39 The most common type of

leguminous roughage utilized in the U.S. is alfalfa hay.40 Alfalfa is typically found in the

Midwest and Western States and is valued for its high yields, multiple harvests per year, high

nutritive value, and resistance to drought.41 Red clover hay is grown in the Corn Belt and

Northeastern States, sometimes in conjunction with other types of hay crops, such as Timothy

Hay. Red clover hay is less nutritious than alfalfa hay and is not as resistant to drought.42

Other types of leguminous hay crops include Lespedeza, Sericea, Peanut, Sweet Clover, and

Cowpea. A number of common grass crops are also used as roughages, including Timothy,

Orchardgrass, Fescue, and Bromegrass.

Compound Feeds and Pet Foods

In addition to ingredient feeds, there are a number of prepared feeds (termed compound feeds)

that are marketed to supplement animal diets or serve as the sole source of nutrition.

Compound feeds are produced by commercial feed mills by processing together numerous

ingredient feeds (energy and protein feeds) and/or vitamins in a manner that is nutritionally

appropriate for a particular animal. There are several types of compound feeds produced by

commercial feed mills. Complete feeds are those that adequately meet the total nutritional

needs of the animal. These feeds may or may not include a roughage component, so that a

complete feed for dairy animals, for instance, could be one that is added to hay or silage to

make a complete ration.43 Other products, such as supplements and premixes, are added to

animal diets in order to provide additional nutrients and essential amino acids, such as lysine

and methionine. A supplement is a mixed feed that combines ingredients with vitamins and

minerals, but requires additional sources of grains or proteins to make a complete ration for
 

44 Ibid.

 

45 USITC staff interview with W. Fiddelke, Plant Superintendent, Land O’Lakes, Mason City,

IA, Sept. 17, 1999.

 

46 John M. Connor and William A. Schiek, Food Processing: An Industrial Powerhouse in

Transition (New York: John Wiley & Sons, 1997), p. 45.

 

47 Diane A. Hirakawa, “Feeding and Nutrition of the Dog and Cat,” ch. in Livestock Feeds

and Feeding, eds. Richard O. Kellems and D.C. Church (Upper Saddle River, NJ: Prentice Hall,

1998), p. 442.

 

48 Ibid., p. 443.

 

49 Cheeke, Applied Animal Nutrition, p. 440 and Hirakawa, “Feeding and Nutrition of the Dog

and Cat,” p. 443.

 

50 USITC, Wheat Gluten, Mar. 1998, p. II-4.

9

animals.44 Premixes are defined as feeds that contain one or more concentrated products, such

as micronutrients, vitamins, or trace elements, that are added to complete feeds.45 Medicated

feeds are those that contain antibiotics and other medications that can be added, with a carrier,

to feeds for animals that require them.

The pet food industry developed in earnest after World War II, though a number of pet food

products, such as dog biscuits and canned pet food, had existed before this time.46 The most

common type of pet food is dry dog food, which accounts for roughly one-third of total sales.

Dry pet foods combine energy and protein feeds (such as corn, rice, soybean meal, and meat

meals) and are usually produced using an extruder or through pelleting techniques.47

Semimoist pet foods have a moisture content of 35 to 40 percent, with additional additives

necessary to act as preservatives.48 Canned pet foods (typically cat foods) either combine

grains and meat products or contain mostly meat byproducts and have a moisture content of

74 to 78 percent.49 Wheat gluten, a byproduct of flour milling, is also used in the pet food

industry because of its visco-elastic properties that serve to bind raw materials together in

semimoist and canned pet foods.50

U.S. INDUSTRY PROFILE

Industry Structure

The structure of the animal feed industry is provided in figure 1. As discussed in the previous

section, a number of the ingredients used in the manufacture of compound feed and pet foods

come from byproducts of grain, vegetable, oilseed, meat, and fish processing. Whole grains

such as corn are also used. Supplies of these ingredients are used by commercial feed mills,

integrators, and pet food manufacturers. Products of the animal feed industry are covered by

a number of Standard Industrial Classification (SIC) codes, including all of SIC 2047 (dog

and cat food) and SIC 2048 (compound feed, including poultry feed, swine feed, cattle feed,

and other specialty feeds). In addition, a number of byproducts used as animal feed can be

found in portions of SIC 2023 (dried feed-grade milk), SIC 2041 (wheat and other grain

byproducts), SIC 2044 (rice byproducts), SIC 2046
10

Figure 1

Structure of the U.S. animal feed industry

Vegetable

and citrus

 farms

Grain farmers (e.g. corn,

wheat, sorghum)

Meat packing Fish

industry

Food

production Byproducts Flour mills

Dry corn

milling

Wet corn

milling Distillers/brewer

s

Food

products

Food

products

Wheat

flour

Wheat byproducts

(middlings,

gluten)

Corn starch

Alcoholic

beverages

Meat byproductsFish byproducts Sweeteners

(HFCS)

Byproducts

(corn gluten)

Byproducts

Corn flour

Corn byproducts

(hominy)

Ingredient supplies
11

Figure 1–Continued

Structure of the U.S. animal feed industry

Ingredient supplies

Roughages

Brokers

Integrator feed mills Commercial feed mills Pet food plants

Feedlots

Wholesalers/brokers

Wholesalers/brokers

Pet superstores

Integrator feedlots Feed stores Feedlots Mass retailers Grocery outlets

Source: Compiled by USITC staff.
 

51 The North American Industry Classification System (NAICS) numbers covered by this

summary are 311111 (dog and cat food), 311119 (other animal feed), and portions of 311514

(dried feed-grade milk), 311211 (flour byproducts), 311212 (rice byproducts), 311221 (corn

gluten), 311223 (cottonseed and other oilseed meals), 311222 (soybean meal), 311613 (meat

byproducts), and 311711 and 311712 (fish byproducts).

 

52 American Feed Industry Association, The U.S. Animal Feed Industry (brochure).

 

53 USDA, Economic Research Service (ERS), “Food Marketing Mergers and Divestitures

Costing Over $100 Million, 1995,” found at Internet address

http://www.ers.usda.gov/briefing/foodmark/markets/data/industry/table37.htm, retrieved Aug. 8,

1999; Kevin Hoepker, “Pet food market continues to experience steady growth,” Feedstuffs, Jan.

4, 1999, p. 12; and Philip Lobo, “Top feed companies: Consolidation sweeps the industry,” Feed

Management, Jan. 1999, p. 5.

 

54 Lobo, “Top feed companies: Consolidation sweeps the industry,” p. 5.

 

55 Ann H. Gurkin and Susan D. Fenstermacher, “The Petfood Report,” Petfood Industry,

Sept./Oct. 1999, pp. 20-21.

12

(corn gluten), SIC 2074 (cottonseed meal), SIC 2075 (soybean meal), SIC 2076 (other oilseed

meals), and SIC 2077 (meat and fish meal).51

Number, concentration, and geographic distribution of firms

Number and level of concentration of firms

The diversity of the types of feed operations in the United States makes it difficult to assign

an exact figure to the number of firms in the feed industry. The statistics that are available

typically exclude firms that supply ingredients (e.g. corn, soybeans) as well as farms that mix

feed on-site. According to the American Feed Industry Association (AFIA), there were 3,000

primary feed manufacturing plants and 5,500 secondary or custom mix plants. These are

complemented by a network of 17,500 feed dealers and “several thousand” ingredient

suppliers.52

The commercial feed industry is becoming increasingly concentrated, reflecting greater levels

of consolidation in the livestock industry. The poultry feed business is dominated by

integrators, which are vertically integrated firms that produce their own feed for poultry

production. There has been a wave of mergers over the past few years in both the animal feed

and pet food industries. These have included Heinz’s purchase of Quaker Oats Co. pet food,

Proctor & Gamble’s purchase of Iams pet food, and a number of additional mergers involving

SF Services (merged with Farmland), Windy Hill Pet Food (merged with Doane’s), Gold Kist

(merged with Southern States Cooperative), Mark II Plan (merged with Land O’Lakes), and

Gringer Feed & Grain (purchased by Hubbard).53

A recent survey of U.S. feed manufacturers revealed that Cargill, Inc. was the largest feed

manufacturer in 1998, with production of 8 million tons per year. Other major producers

include Purina Mills (7.5 million tons per year), Land O’Lakes (6.6 million tons per year),

PM Ag Products, Inc. (3.6 million tons per year), and Consolidated Nutrition LC (3 million

tons per year).54 Top producers of pet food include Ralston Purina, which holds 15 percent

of the U.S. market, followed by Nestle (12 percent), Heinz (11 percent), Doane’s (7 percent),

and Hill’s Pet Nutrition (7 percent).55
 

56 Ash, Animal Feeds Compendium, p. 65.

 

57 Ibid.

 

58 Perry, Cullison, and Lowrey, Feeds & Feeding, p. 198.

 

59 “Feed marketing,” 1998 Feedstuffs Reference Issue, vol. 70, No. 30, July 22, 1998, p. 7. 

This excludes ingredients, feed grains, byproducts, and pet foods.

 

60 See table B-4 for a definition of the regional areas presented in this paragraph.

 

61 USITC staff interview with B. Gottula, Quality Assurance/Regulatory Manager, Land

O’Lakes, Fort Dodge, IA, Sept. 17, 1999.

 

62 Connor and Schiek, Food Processing, p. 197.

13

Geographical distribution of firms

Facilities and farms that process ingredient feeds are found in close proximity to areas where

crops are grown or, in the case of certain types of byproducts, processing facilities are located.

The production of staple energy feeds, such as corn, sorghum, and wheat, is found in the

Midwest and Plains States (table B-1). Soybean meal production predominates in the

Midwest, particularly Illinois, Iowa, Minnesota, and Ohio (table B-2). Cottonseed meal

production centers around Texas, California, and Kansas (table B-2). Other oilseed meals,

such as canola, linseed, and sunflower are produced in the Upper Midwest (table B-2). Meat

meals are generated in areas near the major meat packing facilities.56 For beef, these are found

in Texas, Kansas, Colorado, and Nebraska, while pork production is located in the Midwest

and poultry meal production in the Southeast.57 Fish meal is generated largely from catches

of menhaden off the Atlantic and Gulf Coasts and from tuna and anchovy catches from the

Pacific coast. Byproduct feeds are produced in the areas where the original product is grown

or processed. Citrus pulp, for instance, is produced mainly in California and Florida. Alfalfa

production has shifted from the Midwest to the Southwest and West,58 while red clover hay

is commonplace in the Midwest and the Northeast (table B-3).

Commercial feed facilities are dispersed throughout the United States. As evidenced in table

B-4, no one region produces more than 18 percent of “primary feed,” which includes complete

feeds, supplements, and premixes.59 The Corn Belt60 is the largest producer of primary feed,

accounting for 18 percent of total primary feed. The Southeastern States account for another

16 percent of total primary feed production, followed by the Southern Plains with 13 percent

(table B-4). Although no one region dominates primary feed production, certain regions

specialize in the production of particular types of feed. The types of feeds produced regionally

tend to correspond to the type of livestock predominant in those regions. For example, the

majority of swine feed is produced in the Midwest, with the Corn Belt producing 47 percent

(7.6 million tons). Broiler feed is concentrated in the Southern part of the United States. The

Southeast is the national leader in broiler feed production with almost one-third of U.S.

production. In starter/grower/layer/breeder feeds, the Corn Belt is the leading producer (21

percent of U.S. production). This reflects a growing trend of layer facilities relocating to the

Midwest in order to be closer to ingredients such as corn and soybeans.61 In contrast, the

production of dairy cattle feed is scattered throughout the U.S., with no region dominating

production. The Pacific States are the leading producer of dairy cattle feed, with 20 percent

of U.S. production, followed closely by the Northeastern, Southeastern, and Lake States. Pet

food production can be found throughout the United States, but is concentrated in Iowa, New

York, Kansas, Ohio, and Missouri.62
 

63 U.S. Department of Commerce, U.S. Census Bureau, “Other Animal Food Manufacturing,”

1997 Economic Census, Manufacturing, Industry Series, Report Number EC97M-3111B,

December 1999, p. 7. This figure is based on the NAICS rather than the SIC codes used in the

ASM.

 

64 Philip Lobo, “Capacity is up, capacity used is down,” Feed Management, Jan. 1999, p. 13.

 

65 Ibid.

 

66 Ibid.

 

67 USITC staff interview with representatives of the American Feed Industry Association

(AFIA), Arlington, VA, July 20, 1999.

 

68 U.S. Department of Commerce, U.S. Census Bureau, “Dog and Cat Food Manufacturing,”

1997 Economic Census, Manufacturing, Industry Series, Report Number EC97M-3111A,

December 1999, p. 7. This figure is based on the NAICS rather than the SIC codes used in the

ASM.

14

Employment, earnings, and productivity

There is limited information on employment levels in the animal feed industry. The data

available from the Annual Survey of Manufactures (ASM) and the 1997 Economic Census

from the U.S. Census Bureau detail employment in the compound feed and pet food sectors

for 1992-97. Employment in the compound animal feed industry fell irregularly during 1992-

96, from 19,700 employees in 1992 to 19,200 employees in 1996 (table B-5). In 1997,

employment rose to 19,580.63 The ASM data reveal that nominal wages rose 2.5 percent over

the period 1992-96. The animal feed industry is highly capital-intensive, with ASM data

exhibiting that wages comprised only 2.4 percent of the value of shipments. As a result, most

commercial feed mills do not employ many employees. A recent survey of feed mills showed

that the average number of employees in commercial feed mills was 19 in 1998, down from

21 in 1997.64 An average of 1.8 shifts were worked per day in 1998 (down from 2 shifts per

day in 1997), while production efficiency, defined as number of man-hours per ton of feed

produced, rose from 0.81 in 1997 to 0.92 in 1998.65 Results from the 1997 Economic Census

show that 596 commercial feed mills (40 percent) employed less than 10 employees in 1997

and 1,376 feed mills (91 percent) employed less than 50 employees (figure 2). ASM figures

show that capital expenditures rose 9 percent during 1992-96, though they have been steadily

falling from their peak in 1994.

Other results from the feed mill survey revealed that commercial feed mills operated at

70 percent capacity in 1998, down from 73 percent in 1997.66 The lower rate of capacity

utilization may be indicative of the trend towards shutting down older facilities in the course

of the consolidations and mergers that have occurred in the industry.67 The survey indicates

that the highest level of capacity utilization is in the South Atlantic region, where producers

operated at 82 percent capacity. In contrast, the survey showed producers in the Western part

of the country to be operating at only a 59-percent capacity rate.

Like the compound food industry, the pet food industry had reductions in employment during

1992-96, with the number of workers falling irregularly from 10,500 in 1992 to 9,600 in

1995, before rising to 10,100 in 1996 (table B-5). Employment rose to 10,701 in 1997.68

There is no real pattern in the pet food industry in terms of the number of workers employed

per establishment. According to the 1997 Economic Census, while 50 pet food manufacturers

(27 percent) employ less than 4 workers, an additional 49 plants (26 percent) employ over 100

employees (figure 3). Wages rose by 9.6 percent in nominal terms during
15

Figure 2

Number of employees per establishment in the compound feed industry

1992-96 (table B-5). Trends in capital expenditures in the pet food industry have been

irregular but on an upward trend (17 percent) during the period.

Source: Data computed from the U.S. Census Bureau, “Other Animal Food Manufacturing,” 1997 Economic

Census, p.9
 

69 USITC staff interview with representatives of AFIA, July 20, 1999.

16

Figure 3

Number of employees per establishment in the pet food industry

Source: Data computed from the U.S. Census Bureau, “Dog and Cat Food Manufacturing,” 1997 Economic

Census, p. 9.

Marketing methods, integration, distribution, and pricing practices

Ingredient feeds are often produced, processed, and consumed on-farm by operations on farms

that raise feed grains and livestock. About 70 percent of hay (which is bulky in nature) is

consumed on-farm. Also, between 60 percent to 70 percent of the feed that goes into swine

production is mixed on-farm from ingredients produced on-farm and purchased from

ingredient manufacturers.69 The trend towards on-farm mixing has forced commercial feed

mills to diversify their product mixes. Some feed plants have started to sell private label pet

food to compete in other markets, while other plants have targeted certain niche markets, such
 

70 USITC staff interviews with various feed industry representatives, California and Iowa,

Sept. 13-17, 1999.

 

71 Castaldo, “The North American Feed Industry,” p. 14.

 

72 USITC staff interview with representatives of AFIA, July 20, 1999.

 

73 USITC staff interview with representatives of Land O’Lakes, Ft. Dodge, IA, Sept. 17, 1999.

 

74 USITC staff interviews with various feed industry representatives in California, Sept. 13-14,

1999.

 

75 USITC staff interviews with various feed industry representatives in California and Iowa,

Sept. 13-17, 1999.

 

76 USITC staff interviews with various feed industry representatives in California, Sept. 13-14,

1999.

 

77 USITC staff interviews with various feed industry representatives in Iowa, Sept. 16-17,

1999.

 

78 Shields and Baker, “The U.S. Hay Market,” p. 13.

 

79 Lobo, “Top feed companies: Consolidation sweeps the industry,” p. 12.

 

80 Castaldo, “The North American Feed Industry,” p. 18; and USITC staff interviews with

various feed industry representatives in California and Iowa, Sept. 13-17, 1999.

17

as bagged feeds for hobby farmers, premium animal feed products, and premixes.70

Consolidation in the poultry industry over the past few years has led to fully integrated

production systems among major poultry producers. These integrated systems incorporate all

aspects of the production chain, from the production of the feed to production of the broilers

for market.71

Feed manufacturers procure ingredients from brokers, who buy ingredients from farmers,

elevators, or processors. Direct procurement arrangements are made with farmers involved

in the production of specialized ingredients, such as high-lysine corn.72 Feed producers that

are part of cooperatives will procure directly from farmers as well.73 Corn and soybean meal

are the main ingredients used, but a host of other commodities are purchased by feed

manufacturers in the production of feed. Table B-6 provides a breakdown of the various types

of ingredients other than corn and soybean meal that are employed by feed manufacturers. In

particular, there is significant use of fish meal, distillers grains, blood meal, and corn gluten

among commercial mills. Major ingredients, such as corn and soybean meal, are purchased

from producers and brokers in the Midwest. Supplemental protein and energy sources are

often procured from local sources. In California, for instance, dairy farms utilize a number

of byproducts of the local processing industries, including tomato pulp, grape pumice, brewers

grains, and citrus pulp.74

Feeds are sold to farmers, brokers, wholesalers, or feed stores. Direct sales of dairy feeds are

common in California, while feeds in the Midwest are largely sold through an intermediary.75

In general, most feed is sold in a relatively localized area. In California, for instance, the

majority of dairy feed is sold in a 100-mile area within the Central Valley.76 Discussions with

feed manufacturers in Iowa reveal a similar sales network in terms of distance.77 Hay is also

primarily marketed locally, as its bulkiness translates into high transport costs relative to other

feed products.78 Most feed sales (80 percent in 1998) are made in bulk, truck-load sized

deliveries to customers.79 Complete feeds destined for feed stores, supplements, and premixes

are typically sold in 50-lb or 80-lb bags. There is a trend towards the use of 1-ton bags for

sales to medium-sized customers that cannot handle bulk deliveries.80 Roughages, such as hay,

are marketed through a variety of means, including sales between farmers, sales to dealers and
 

81 Shields and Baker, “The U.S. Hay Market,” p. 13.

 

82 Ibid.

 

83 USITC staff interview with R. Hammock, Sunshine Mills, Oct. 20, 1999.

 

84 Email message received by USITC staff from N. Cook, Pet Food Institute, Sept. 9, 1999.

 

85 Ibid.

 

86 Gurkin and Fenstermacher, “The Petfood Report,” p. 20.

 

87 Bob Bregenzer, “Sales data: Mass merchants offer greater variety and sales grow 14%,”

Petfood Industry, Nov./Dec. 1998, p. 48. 

 

88 Hoepker, “Pet food market continues to experience steady growth,” p. 12.

 

89 The marketing year begins on October 1.

18

brokers, and direct contracts with dairy farms.81 Several other practices are common in certain

regions of the country, including auctions in Pennsylvania and sales to marketing associations

in the Western States.82

A similar marketing channel exists for pet foods. In terms of procurement, raw materials for

pet foods are sold to the pet food manufacturer from producers (e.g. farmers, packing plants)

or brokers.83 Vitamins and supplements are also sold directly to the manufacturer.84 Pet food

is distributed to wholesalers, groceries, pet stores, farm stores, and warehouses. Specialty

brands are generally distributed to pet stores, farm stores, and veterinarians rather than to

general retailers. Veterinarian diets are usually distributed by veterinarians only. There are

also some types of pet foods that are distributed directly to consumers via the Internet.85 In

1998, grocery stores accounted for 52 percent of retail sales of pet food, followed by specialty

stores (15 percent), mass retailers such as Wal-Mart (14 percent), feed stores (7 percent),

veterinarians (6 percent), and other outlets (7 percent).86 There has been a trend away from

grocery sales and towards sales in specialty stores, reflecting significant growth in the

consumption of premium and superpremium brands of pet food.87 Substantial increases in

sales have also come from mass retailers particularly since 1994; such sales grew by 64

percent during 1994-98.88

Most prices for ingredient feeds are determined regionally. Corn and soybean meal are traded

on the Chicago Board of Trade. Ingredient prices tend to track the prices of corn (for energy

and grain-based feeds) and soybean meal (for protein meals). Prices for ingredient feeds varied

irregularly during the crop-years 1993-97 (table B-7).89 Most feed prices peaked in either

crop-year 1995 or crop-year 1996, with sharp declines in crop-year 1997. In the case of

soybean meal, the average price rose from $152 per short ton in 1994 to $260 per short ton

in crop-year 1996. In crop-year 1997, however, prices fell to $187 per short ton (table B-7).

Prices for protein meals, such as cottonseed meal and meat and bone meal, followed a similar

trend during the period. Prices for all protein meals dropped significantly in crop-year 1997

with the exception of fish meal. Fish meal prices rose significantly throughout crop-years

1993-97, ranging from an average low of $337 per short ton in crop-year 1993 to $555 per

short ton in crop-year 1997. This reflects a decline in the domestic menhaden catch over the

period.
 

90 Lee H. Boyd, “Feed regulation,” Feedstuffs 1998 Reference Issue, p. 126.

 

91 Ibid.

 

92 Ibid., p. 127.

 

93 Ibid.

 

94 Category I drugs require no withdrawl period when used in the “lowest approved continuous

use level,” while Category II drugs require a withdrawl period. See Lee H. Boyd, “Medicated feed

regulation,” Feedstuffs 1998 Reference Issue, p. 131.

 

95 Boyd, “Medicated feed regulation,” p. 131.

 

96 Ibid.

 

97 Ibid.

 

98 Boyd, “Feed regulation,” p. 127.

19

U.S. government programs and regulations

Domestic regulations

Regulation on matters such as labeling and the types of additives and drugs permitted in

animal feeds is the purview of state feed control agencies.90 The FDA is the main Federal

agency in charge of promulgating feed regulations. The FDA establishes guidelines for the

types and dosages of drugs and additives that can be used in animal feeds, initiates action

against bogus label claims, and works in conjunction with the States to inspect feed mills that

manufacture medicated feeds.91

Feed labeling laws require the posting of detailed information about the feed product. Labels

must include brand and product names and a guaranteed analysis that provides for the

minimum and/or maximum levels of protein, fat, fiber, minerals, and vitamins contained

within the product.92 Medicated feeds must be labeled as such and must have a “claim

statement,” which specifies uses and warnings associated with the drug used.93

Medicated feeds are governed by the Second Generation of Medicated Feed Program of 1986

and the Animal Drug Availability Act of 1996. The Second Generation program classifies

FDA-approved drugs into two categories (Category I and Category II)94 based on whether the

drug requires a withdrawal period, defined as the amount of time needed for an animal to

excrete the drug from its system before being put up for sale. The program further

distinguishes between three types of medicated feed products. Type A products are classified

as drugs by the FDA and consist of medicines used in Type B and Type C medicated

products.95 Type B products are considered medicated feeds by the FDA. They must contain

a minimum level of nutritive product (at least 25 percent by weight) and are limited in the

maximum amount of Category I or Category II drugs they may contain.96 Type C products

are classified by the FDA as animal feeds and can be used as a complete feed.97 The Animal

Drug Availability Act of 1996 simplified the registration procedures related to Type A,

Category II drugs by replacing the medicated feed applications (MFA) process with a mill

license requirement; prior to 1996, any use of a Type A, Category II drugs had to be approved

through MFA. The 1996 act also created a new category of drug which can only be used in

a medicated feed if accompanied by a Veterinary Feed Directive (VFD) signed by a

veterinarian.98

In the wake of the outbreak of bovine spongiform encephaolpathy (BSE), also called “mad

cow disease,” in the United Kingdom, the FDA banned the practice of feeding ruminant-based
 

99 USDA, FAS, “Market Access Program,” found at Internet address

http://ffas.usda.gov/info/factsheets/mapfact.html, retrieved Aug. 13, 1999.

 

100 USDA, FAS, “Foreign Market Development Program: Frequently Asked Questions,” found

at Internet address http://ffas.usda.gov/mos/programs/fmdfaq.html, retrieved Aug. 19, 1999.

 

101 USDA, FAS, “The Competition in 1997: U.S. and Competitor Expenditures on Export

Promotion and Export Subsidies for Agricultural, Forestry, and Fishery Products,” found at

Internet address http://ffas.usda.gov/cmp/com-study/1997/comp97-us.html, retrieved Nov. 8,

1999.

 

102 Pet Food Institute, “The Pet Food Institute: A Commitment to Quality,” p. 10.

 

103 Ibid.

 

104 USDA, FAS, “Export Credit Guarantee Programs,” found at Internet address

http://ffas.usda.gov/excredits/exp-cred-guar.html, retrieved Oct. 29, 1999.

20

animal feeds to ruminants in August 1997. BSE is a neurological disorder that causes severe

twitching and contortions in animals prior to their death. Some researchers contend that the

practice of feeding diseased sheep meal to ruminants was the mode of transmission of BSE

to cattle. BSE has been implicated in a variant of Creutzfeldt-Jakob disease in humans, a

similar neurological disorder that usually results in death. The FDA mandated that any

ruminant-based meat and bone meal be labeled to clearly state that such feeds are not to be

fed to ruminants. Other meat-based meals, such as those derived from poultry and swine, are

exempt from this labeling requirement.

Export promotion programs

The U.S. animal feed industry receives funds for export development from the Market Access

Program (MAP) and the Foreign Market Development (or Cooperator) Program (FMD), both

of which are administered by USDA. The MAP assists exporters and associations with trade

promotion activities in order to enhance exports of U.S agricultural products.99 The emphasis

of the FMD is to develop and sustain markets for U.S. agricultural products.100 The focus of

the MAP is on higher value products, while the FMD concentrates on bulk products.101

Table B-8 details the allocation of MAP and FMD funds for a number of feed-related

associations. Several of these associations, such as the American Soybean Association and

U.S. Grains Council, focus on both feed and nonfeed uses of their particular products. The

largest recipient of MAP funds for an organization focused primarily on the animal feed

industry is the Pet Food Institute (PFI). PFI has been a recipient of funds allocated through

the Market Access Program (MAP) since 1993. PFI has used these funds to target three major

markets for the export of U.S. pet food: Japan, Taiwan, and Mexico.102 Trade promotion

efforts in Japan and Mexico have focused on disseminating information on U.S. pet food

through numerous seminars, trade fairs, brochures, and articles. The target audience for these

activities has been veterinarians, nutrition specialists, government officials, and consumers.103

A number of feed products are included in the GSM 102/103 credit guarantee programs of

USDA. The GSM-102 program provides short-term (up to 36 months) credit guarantees for

exporters who have difficulty securing letters of credit for buyers in certain countries, while

the GSM-103 program allows for longer term loan guarantees (up to 10 years).104 Feed

products included in each program include protein meals, milk replacers, and pet foods.
 

105 USITC staff interview with R. Reifert, Plant Manager, Kent Feeds, Altoona, IA, Sept. 16,

1999.

 

106 Data compiled from Pet Food Institute, “1999 Fact Sheet.”

 

107 Hoepker, “Pet food market continues to experience steady growth,” p. 12.

 

108 Ibid.

 

109 Nick Downing, “1999 & beyond: Trends in competition, distribution and new products,”

Petfood Industry, Jan. 1999, p. 43.

21

U.S. MARKET

Consumer Characteristics and Factors Affecting Demand

The principal purchasers of animal feed products include farmers, commercial feed

operations, specialty stores (for certain types of feed and pet food), and households (for pet

food). Farmers and commercial feed operations rely heavily on “least-cost analysis” in making

feed ingredient decisions. Least-cost analysis involves choosing ingredients based on the best

combination of price, local availability, and nutritive properties for a given species. For

example, nonruminants generally consume corn (for energy purposes) and soybean meal (as

a protein source). However, other feed ingredients can be used to replace a portion of these

staple rations depending on the relative price and availability of alternative feeds. The

seasonality of ingredient feeds plays a role in least-cost analysis, insofar as it influences feed

ingredient availability. Updated nutritional information for specific types of ingredients will

also affect the proportions used in a processor’s least-cost analysis. Least-cost analysis, as

practiced by commercial feed mills, is quite sophisticated, with computer algorithms used to

determine the optimal combination of feed ingredients, subject to price and nutritive

considerations. These programs change the proportions used in compound feed production

frequently, according to changes in prices and availability of ingredients.105

Pet food demand primarily depends on the size and composition of the pet population. Data

from the Pet Food Institute reveal that there were 58 million dogs and 71 million cats in the

United States in 1998.106 Pet ownership levels have increased at a 1.3 percent annual rate over

the 1990s.107 These trends in ownership can be attributed to a number of factors, including the

aging of American society, smaller family sizes, and a greater desire for pet companionship.108

There has been a trend in recent years toward the development of premium and superpremium

brands of pet food aimed at certain types of pet populations (e.g. diets for older pets, low

calorie diets for obese pets). Reportedly, three-quarters of new pet food products marketed in

the U.S., EU, Japan, and Australia were aimed at the premium/superpremium market.109
 

110 Note that this section refers to the crop year, which begins October 1. Also, consumption of

ingredient feeds in this section is defined as the quantity fed to animals rather than apparent

consumption.

22

Consumption

Consumption trends

According to USDA, total consumption of protein feed ingredients, such as oilseed meals,

byproducts, and meat and fish meals, rose from 41 million metric tons in crop-year110 1993

to 47 million metric tons in crop-year 1997, a rise of 16 percent (table B-9). Consumption of

proteins derived from oilseeds rose 16 percent during crop-years 1993-97. Soybean meal, the

most widely used protein meal, registered a 14-percent increase in consumption during this

period, rising from 23 million metric tons to 26 million metric tons. Although cottonseed meal

consumption increased 12 percent during the crop-years 1993-1997, there has been an

irregular decline in consumption since 1994. Consumption of sunflower and canola meals

increased sharply during crop-years 1993-97, though these products only comprise about 7

percent of oilseed meal consumption.

The greatest increase among protein feeds occurred in corn gluten feed and meal, where

consumption surged by 293 percent from 827,000 metric tons in crop-year 1993 to 3.2 million

metric tons in crop-year 1997. Consumption of alfalfa meal also grew substantially,

increasing by 107 percent. Consumption of animal proteins fell sharply during this period.

Tankage and meat meal consumption increased marginally, while fish meal consumption fell

by 65 percent. There was also a 12-percent decline in the consumption of milk containing

feeds, reflecting the decline in dairy herds over the past decade. 

Figures computed from the Bureau of Economic Analysis (BEA) of the U.S. Department of

Commerce reveal that the value of apparent consumption of compound animal feed products

rose by 24 percent during 1993-1997, from $13 billion to $17 billion (table B-10). The BEA

data report that the value of apparent consumption of pet foods rose from $6.3 billion to $7.8

billion during 1993-97, an increase of 30 percent (table B-11). Industry data reveal growth

in retail sales of dog and cat food of 20 percent during 1994-1998 from $8.8 billion to $10.6

billion (table B-12). Sales growth of cat food increased faster (28 percent) than dog food sales

(15 percent) during this period.

Conditions of competition between foreign and U.S. animal feed

products

In general, there is limited competition between foreign and U.S. animal feed products within

the United States. Most ingredients, particularly corn, soybean meal, and byproducts, are

sourced from U.S. farmers or suppliers. Exceptions include oats, canola meal, and fish meal,

where imports supplement domestic production. Imports of complete feeds and pet foods are

relatively small in comparison to domestic production. The bulky nature of many feed

ingredients precludes large volumes of imports, as it is relatively expensive to ship these goods
 

111 U.S. Department of Commerce, International Trade Administration (USDOC, ITA),

“Canada -- Pet Food Industry & Market Profile,” Market Research Report, Oct. 1998.

 

112 U.S. Department of Commerce, U.S. Census Bureau, “Other Animal Food Manufacturing,”

1997 Economic Census, pp. 12-13.

 

113 Ibid.

 

114 U.S. Department of Commerce, U.S. Census Bureau, “Dog and Cat Food Manufacturing,”

1997 Economic Census, p. 10.

23

over long distances. Moreover, in the case of pet foods, much of the trade that takes place is

cross-border trade with Canada involving U.S. firms with Canadian operations.111

In the case of compound feeds and pet foods, while the ratio of imports to consumption

increased somewhat during 1993-97, overall import penetration remains low. In 1997, imports

accounted for only 1.3 percent of the total value of U.S. consumption of compound animal

feeds and 1.8 percent of the total value of pet food consumption (tables B-10 and B-11). Other

protein feeds show a similar lack of import penetration. In 1997, import penetration was less

than 5 percent for corn gluten feed in 1997 and less than 2 percent for corn gluten meal (table

B-13). Import penetration in soybean meal was negligible during 1993-97 (table B-14). Fish

meals and wheat gluten have had relatively higher degrees of import penetration. After

peaking at 46 percent in 1994, import penetration in fish meals hovered between 22 and 24

percent during 1995-98 (table B-15). During 1993-97, there was significant import

penetration of wheat gluten, which rose from 47 percent in 1993 to 57 percent in 1997 in

value terms (table B-16). In terms of volume, an even greater share of consumption is

accounted for by imports, with 62 percent of the consumption of wheat gluten coming from

imports in 1997 (up from 56 percent in 1993). 

Production

Data on production in the animal feed industry from the BEA detail the commercial compound

feed industry and the pet food industry; this excludes on-farm and ingredient production.

According to the BEA, the value of U.S. shipments of compound animal feed products

(premixes, concentrates, supplements, specialty feeds, and other miscellaneous feed products)

increased from $14 billion in 1993 to $18 billion in 1997 (table B-10). Major products include

chicken and turkey feed supplements, concentrates, and premixes (shipments of $8.1 billion

in 1997), complete dairy feeds (shipments of $1.6 billion in 1997), and swine feed

supplements, concentrates, and premixes (shipments of $981 million in 1997).112 According

to the 1997 Economic Census, the value of chicken and turkey feed supplement shipments

surged 66 percent relative to its 1992 value, while changes in the values of other feeds were

more modest.113 The value of pet food shipments rose 26 percent during 1993-1997 from

$6.5 billion to $8.3 billion, according to data from the BEA and the 1997 Economic Census,

(table B-11). Dog food shipments were valued at $5.3 billion in 1997 and cat food shipments

were valued at $2.8 billion.114
 

115 With respect to oilseed production, the years in question refer to crop-years rather than

calendar years. For soybean meal, cottonseed meal, and sunflowerseed meal, the crop-year

begins Oct. 1. For linseed meal and canola meal, the crop-year begins June 1.

24

Other available data from the trade journal Feedstuffs show that on a volume basis, the

production of primary feeds rose by 4 percent, from 115 million short tons in 1994 to 120

million short tons in 1998 (table B-17). Production of broiler feeds exhibited strong growth,

rising 13 percent from 33 million short tons in 1994 to 38 million short tons in 1998 (table B17). Growth in some types of feed production contracted during 1994-98. Turkey feed

production declined 6 percent, while dairy feed production fell 4 percent and beef and sheep

feed production fell 3 percent.

In terms of ingredient feeds, data from USDA show that production of major oilseed proteins

rose steadily during crop-years 1993-97 (table B-18).115 There was a 25-percent increase in

the volume of soybean meal production, which rose from 31 million short tons in crop-year

1993 to 38 million short tons in crop-year 1997. Sunflowerseed meal production rose by 57

percent during crop-years 1993-1997, while fish meal production experienced a considerable

decline. Production of fish meal fell from 404 million short tons in 1994 to 296 million short

tons in 1998.

A recent survey showed that dairy feeds are produced by almost 92 percent of commercial

feed mills, followed by beef feeds at 89 percent and swine feeds at 87 percent (table B-19).

Pet foods are being produced by an increasing number of feed mills, with 11 percent

producing pet food in 1998 (compared to 6 percent in 1997).

U.S. TRADE

Overview

Animal feed products are an important contributor to agricultural trade. In 1998, the trade

surplus for all animal feed products, including ingredient feeds, compound feeds, and pet

foods, was valued at $3.6 billion, an increase of 24 percent since 1994, but down from its

peak of $4.1 billion in 1997 (table B-20). The United States holds substantial trade surpluses

with all of its major trading partners. The trade surplus with Japan was $615 million in 1998.

The trade surpluses with European countries ranged from a low of $44 million for Germany

to $231 million for the Netherlands. The only country with which the United States had a

trade deficit during 1994-98 was China in 1994, when the deficit was valued at $1 million.

By 1998, this deficit was transformed into a $195 million surplus.
 

116 Trade data for canola meal obtained from data of the U.S. International Trade

Commission.

 

117 Wheat gluten imports include non-feed uses of wheat gluten.

25

U.S. Imports

Principal import suppliers and import levels

Products imported

In 1998, U.S. imports of animal feed products totaled $759 million (table B-20). Almost onehalf (48 percent) of these imports consisted of compound animal feeds and pet foods. Imports

of compound animal feeds were valued at $214 million in 1998 and consisted primarily of

mixed feeds for dairy cattle, poultry, swine, and other animals (table B-21). Imports of dog

and cat food totaled at $149 million in 1998 (table B-22). Other important feed products

imported in 1998 included canola meal ($163 million)116, wheat gluten117 ($98 million), and

meat and fish meal ($53 million) (tables B-23 and B-24).

Import levels and trends

U.S. imports of animal feeds increased by almost 24 percent in value terms and 9 percent in

terms of volume during 1994-98 (table B-25). Imports of compound animal feeds increased

by 33 percent in value terms, from $161 million in 1994 to $214 million in 1998 (table B-21).

The volume of imported compound feeds increased at a slower rate, exhibiting 18-percent

growth during 1994-98. Both the value and volume of compound feed imports peaked in 1996

at 453,248 metric tons valued at $230 million, before declining during 1996-98 (table B-21).

The greatest growth in imports has occurred in dog and cat food. Imports of dog and cat food

rose by 78 percent during 1994-98, from $84 million to $149 million (table B-22). Import

volumes increased by 58 percent over this period, rising from 106,157 metric tons in 1994 to

168,253 metric tons in 1998 (table B-22). The volume of wheat gluten imports rose

irregularly but decisively from 82 million kg in 1994 to 94 million kg in 1998, while the value

of imports rose with similar irregularity, from $92 million in 1994 to $98 million in 1998

(table B-23). Meat and fish meal imports tapered off considerably during 1994-98. Import

volumes fell by 58 percent, from 267,404 tons in 1994 to 110,990 tons in 1998, while the

value of imports dropped by 36 percent (table B-24). Most of the decline occurred during

1994-95 as a result of a steep drop in imports from Peru. Imports of Canadian canola meal

jumped by 71 percent during 1994-98, increasing in value from $95 million in 1994 to $163

million in 1998.
26

Principal import suppliers

Canada is by far the most important source of imported animal feeds (table B-25). In 1998,

imports from Canada totaled nearly $500 million, which represented almost two-thirds of total

animal feed imports. In value terms, Canada accounts for all canola meal imports, 75 percent

of dog and cat food imports, and 65 percent of compound feed imports. The EU is the secondleading source of such imports (valued at $109 million in 1998), with Germany and the

Netherlands supplying the majority of EU animal feed products to the United States. Imports

from Australia were valued at $40 million in 1998 and were concentrated in wheat gluten ($32

million) and meat and fish meals ($8 million). Almost $27 million in imports came from

Thailand in 1998, the majority of which consisted of dog and cat food imports. Other minor

suppliers of animal feed imports include Japan, China, Iceland, and New Zealand.

U.S. trade measures

Tariff and nontariff measures

The vast majority of animal feed products enter the United States duty-free or at a very low

duty rate. Column 1 animal feed tariffs for the United States in 1999 are summarized in table

B-26. In 1998, the aggregate trade-weighted import duty rate for all animal feed products was

just 0.8 percent; the average trade-weighted import duty rate based on dutiable products was

5.9 percent. Almost 57 percent of U.S. imports of animal feed products enter duty-free,

including meat and fish meals, milled grain brans, dog and cat foods, and mixed animal feeds.

Oilseed meal imports are assessed duties that range from 0.14¢/kg for linseed meal to

0.58¢/kg for cottonseed meal. Wheat gluten used in animal feed production is assessed a duty

rate of 2.2 percent ad valorem. Most other feed products have tariffs that range from 1.7 to

2.1 percent ad valorem.

Certain types of milk replacers are subject to the tariff-rate quota (TRQ) that exists for these

items. A total of 7,399,700 kg of milk-containing feeds are allowed entry into the United

States at the in-quota rate, which is allocated to 4 countries and an “other country” category.

Ireland receives the largest quota quantity at 5,470,323 kg, followed by New Zealand at

1,782,618 kg, the United Kingdom at 83,914 kg, Australia at 56,699 kg, and other countries

at 6,146 kg. The in-quota tariff rate for these milk replacers is 7.5 percent, while the overquota rate is 82.8¢/kg plus 6.6 percent ad valorem. Additional safeguard duties (as defined

in section 9904 of the HTS) are added to the over-quota duty depending on the value or

quantity of the product. In 1998, only 14 percent, or 1,064,180 kg of the TRQ was filled. New

Zealand utilized the greatest proportion of its quota, with 921,610 kg of imports (52-percent

fill rate) in 1998. Other countries imports were 2,570 kg (42 percent) in 1998, while imports

from Ireland were only 140,000 kg (3-percent fill rate). There were no imports of milkcontaining feeds from Australia or the United Kingdom in 1998. Small amounts of over-quota

imports from Canada (5,102 kg) entered the United States in 1998.

Under NAFTA, milk-containing feeds from Mexico are excluded from the TRQ. Rather, they

are included in TRQs placed on dried milk and cream from Mexico (see note 6 of chapter 99

of the HTS). The TRQ for these products was set at 489,000 kg in 1999, with a 3-percent

annual increase in the TRQ volume until 2003 when the TRQ will be eliminated. In-quota

milk-containing feeds from Mexico enter into the U.S. duty-free. Over-quota imports are
 

118 “USDA restricts ruminant imports from Belgium,” Feedstuffs, Nov. 24, 1997, found at

Internet address http://www.feedstuffs.com/subscrip/1997/n10b6948.htm, retrieved July 7, 1999. 

 

119 “USDA restricts animal imports from Europe,” Feedstuffs, Dec. 29, 1997, found at Internet

address http://www.feedstuffs.com/subscrip/1997/n17s6952.htm, retrieved July 7, 1999. 

 

120 Ed Maixner, “Wheat gluten pours through Clinton quota,” Feedstuffs, Apr. 12, 1999, p. 4.

27

assessed a duty that depends on the value of the feed product. Those valued at not over

$1.21/kg receive a tariff of 37.8¢/kg, while all others have a tariff rate of 31.2 percent. In

1998, imports of dried milk and cream from Mexico, as specified under note 6 of chapter 99

of the HTS totaled 244,537 kg (51-percent fill rate).

Since 1989, USDA has prohibited imports of live ruminants and ruminant-based products into

the United States from countries where known outbreaks of BSE have occurred. Meat and

bone meal are included in the ban. Countries covered by the ban include the United Kingdom,

France, Ireland, Oman, Portugal, Switzerland, and the Netherlands. The list was extended to

include Belgium and Luxembourg in November 1997 following the diagnosis of BSE cattle

in those two countries.118 In December 1997, the USDA extended the prohibition to the rest

of Europe.119

U.S. Government trade-related investigations

On September 26, 1997, on behalf of the Wheat Gluten Industry Council, the Commission

initiated an investigation under section 202(b) of the Trade Act of 1974 (19 U.S.C. 2252) to

determine whether wheat gluten, as defined under subheadings 1109.00.10 and 1109.00.90

of the HTS, was being imported into the United States in such increased quantities as to be

a substantial cause of serious injury, or the threat thereof, to the domestic industry producing

an article like or directly competitive with the imported article. On January 15, 1998, the

Commission made a unanimous determination that increased imports of wheat gluten were a

substantial cause of injury to the domestic industry. The Commission ruled, however, that

under section 311 of the NAFTA, increased imports from Mexico and Canada were not

responsible for injury and excluded these countries from the remedy action taken by the

Commission. On May 30, 1998, the President formally implemented a quota on wheat gluten

imports through Presidential Proclaimation 7103. The President set the duration of the quota

at 3 years and 1 day and extended relief from the quota to countries covered under the

Generalized System of Preferences (GSP). The initial quota was set at 57.6 million kg

(126.812 million pounds) and allocated by country based on the average import shares

between the crop years ending June 30, 1993 and June 30, 1995. The initial quota allocation

accorded Australia was 28.315 million kg, the EU received 24.513 million kg, and all other

countries were allocated 4.693 million kg for the period June 1, 1998 to May 31, 1999. These

volumes will rise 6 percent per year over the subsequent 2 years of the quota. 

In 1999, it was revealed that the EU exceeded its quota of wheat gluten imports by over 5

million kg. The U.S. Customs Service attributed this to the incorrect submission of customs

forms by importers and brokers, who did not identify wheat gluten as being subject to the

quota.120 Through Presidential Proclamation 7202, announced on May 28, 1999, the President

addressed the overage by modifying the original quota action. For the quota year June 1, 1999

to May 31, 2000, the quota for wheat gluten imports from the EU was reduced from

25,983,000 kg to 20,581,000 kg. The quota allocation for the EU in the third quota year (June

1, 2000 to May 31, 2001) remains unchanged. In addition, over-quota imports from subject
 

121 Based on information obtained from the Customs Electronic Bulletin Board, found at

Internet address http://www.cebb.customs.treas.gov. 

28

countries during the quota year June 1, 1999 to May 31, 2000 will be applied to the following

year’s quota, while over-quota imports during the quota year June 1, 2000 to May 31, 2001

will be placed in bonded warehouses or exported back to the country of origin. On June 17,

1999, the quota for the EU for the quota year June 1, 1999 to May 31, 2000 was completely

filled.121

U.S. Exports

Principal markets and export levels

Products exported

In 1998, U.S. exports of animal feed products totaled $4.3 billion (table B-20). Tables B-27

through B-32 summarize export levels for major animal feed products. Most exports of animal

feed products are ingredients rather than compound feeds, though pet food exports have been

growing rapidly. Products derived from the crushing of soybeans are a major component of

animal feed exports. In value terms, almost 27 percent of U.S. soybean meal production was

exported during crop year 1997 (table B-14). As a share of total U.S. animal feed exports,

soybean meals accounted for 37 percent, or $1.6 billion, of total exports in 1998, with

soybean flours contributing an additional 2 percent, or $99 million. Dog and cat food exports

totaled $681 million in 1998, accounting for 16 percent of total animal feed exports (table B27), while residues of the corn wet milling industry (e.g. corn gluten feed and corn gluten

meal) contributed an additional $656 million in 1998 (table B-32). Other important animal

feed exports include compound animal feeds, with exports totaling $495 million in 1998, and

alfalfa and hay, with $315 million in exports in 1998. There is relatively less trade in

byproduct feeds, with the major exported byproducts being meat and fish meals ($155 million

of exports in 1998), brewers and distillers grains ($72 million of exports in 1998), and beet

pulp ($69 million of exports in 1998) (table B-26).

Export levels and trends

Exports of animal feed products rose by 24 percent in value terms and by 17 percent in

volume terms during 1994-98 (table B-33). The gains in animal feed exports have been largely

due to strong growth in exports of pet foods and oilseed meals. The value of pet food exports

rose by 76 percent over 1994-98, from $387 million to $681 million, while the rate of growth

in terms of volume during this period was 70 percent (table B-27). The value of oilseed meal

exports (primarily soybean meal) rose 67 percent, from $980 million in 1994 to $1.6 billion

in 1998, with export volumes increasing 63 percent (table B-28).

Meat and fish meal exports showed substantial growth over 1994-98 as well, increasing

60 percent in value terms, from $97 million in 1994 to $155 million in 1998, and 41 percent

in volume terms (table B-29). The value of meat and fish meal exports grew swiftly during
 

122 USITC staff interview with representatives of AFIA, July 20, 1999.

 

123 USDOC, ITA, “Canada -- Pet Food Industry & Market Profile,” p. 3.

29

1994-96, peaked in 1997, and fell by 2 percent in 1998; volumes have grown steadily

throughout the period. Despite this growth, exports of meat meal (exclusive of fish meal) to

several markets decreased during the period, particularly exports to Indonesia and Thailand.

This was primarily a result of the Asian financial crisis. Exports of meat meal to other

markets have also been hampered by fears over BSE.122 Alfalfa and hay exports rose by 14

percent in volume terms and by 15 percent in value terms during this period (table B-30).

Compound animal feed exports declined by 8 percent in value terms during 1994-98, with the

steepest decline occurring over the last year (table B-31). Corn gluten exports fell by 26

percent in terms of value during 1994-98, with most of the decline occurring in 1998 (table

B-32). 

Principal export markets

U.S. exports to principal markets are summarized in table B-33. Almost 26 percent, or

$1.1 billion, of U.S. animal feed exports went to the EU in 1998. The value of such exports

declined by 3 percent during 1994-98, with a sharp decrease in exports of 23 percent during

1997-98. Principal exports to the EU include corn gluten, pet food, and compound animal

feeds. The largest individual market for animal feed exports in the EU is the Netherlands,

which accounted for $252 million of U.S. exports in 1998 (table B-33). Almost 71 percent

($178 million) of animal feed exports to the Netherlands consisted of corn gluten feed and

meal (tables B-32 and B-33). Other important export markets in the EU include Spain, the

United Kingdom, and Ireland (table B-33).

Japan was the destination for 15 percent, or $628 million, of all U.S. exports of animal feed

products in 1998. The value of exports to Japan increased by 13 percent during 1994-1998,

rising from $555 million to $628 million (table B-33). A significant component($284 million)

of U.S. feed exports to Japan consist of alfalfa and hay, which are used predominately in dairy

cattle production (tables B-30 and B-33). Japan is also the second-leading destination for dog

and cat food exports, which were valued at $128 million in 1998 (table B-27). Other

important U.S. exports of animal feed products to Japan include oilseed meals ($60 million

of exports in 1998) and compound animal feeds ($48 million of exports in 1998) (tables B-28

and B-31).

U.S. animal feed exports to Canada were valued at $578 million in 1998. The value of exports

to Canada rose by 19 percent during 1994-1998 (table B-33). Canada is the leading export

market for compound feeds, dog and cat food, and oilseed meals. Since NAFTA, it has

become more common for multinational firms to export pet food to Canada from facilities in

the United States, rather than maintain plants in Canada.123 At the same time, export growth

in these feed products during 1994-98 was relatively modest, with the value of pet food

exports increasing by 16 percent, compound feed exports by 14 percent, and oilseed meal

exports by just 6 percent (tables B-27, B-28, and B-31).

Exports to Mexico declined irregularly during 1994-98. Exports were valued at $256 million

in 1998, a decline of 12 percent over the value in 1994 of $291 million (table B-33). U.S.

exports to Mexico include almost equal values of compound animal feeds ($58 million), pet

foods ($53 million), and corn gluten ($51 million) in 1998 (tables B-27, B-31, and B-32). Pet
 

124 “U.S. Pet Food Exports are Enjoying Rapid Growth in Latin America,” USDA Grain

Circular, Foreign Countries’ Policies and Programs, found at Internet address

http://ffas.usda.gov/grain/circular/1998/98%2D04/dtricks.htm, retrieved May 4, 1999.

 

125 “A Brief Introduction on China’s Animal Husbandry,” found at Internet address

http://www.cav.net.cn/xmj/eng/97xumu.htm, retrieved Oct. 19, 1999.

 

126 The 1998 exchange rate for the EU was Ecu 0.8929 = $1.

30

food exports to Mexico have increased rapidly over 1994-98, registering a 342-percent gain

over the period (table B-27). The pet food market has been targeted by U.S. manufacturers

as having significant growth potential, as evidenced by the rapid growth of U.S. exports to

Mexico. The Pet Food Institute has utilized resources, mainly through the use of market

promotion funds made possible by the Market Access Program of USDA, to educate

consumers and veterinarians in Mexico of the value of commercial pet foods.124

Animal feed exports to China grew significantly over the past few years. This is due in part

to significant growth in the commercial livestock sector in China.125 U.S. animal feed exports

to China were valued at $205 million in 1998, compared to just $4 million in 1994 (table B33). The bulk of animal feed exports to China consists of soybean meal exports. Total oilseed

meal exports (including soybean meal) rose from about zero in 1994 to about $160 million

in 1998 (table B-28).

Foreign trade measures

Tariff measures

In general, foreign tariffs on animal feed products are relatively low, even for value-added

products such as pet food and compound feeds. In some cases, however, certain types of pet

foods and compound feeds are subject to higher tariffs if they contain certain ingredients, such

as milk or starch, that are subject to government price or other supports. Foreign tariffs on

animal feed products are summarized in table B-34 for major export markets.

Tariffs in the EU are high for many feed products. The EU differentiates tariffs for dog and

cat food and compound animal feeds based on the level of starch and milk each type of feed

contains. Of the 12 tariff rates for dog and cat foods, 11 are based on the relative starch and

milk content that each type of pet food contains. Pet food products with between 10 percent

and 30 percent starch content, for instance, are assessed tariffs ranging from free (if the milk

content is below 10 percent) to 1,054.3 Ecu/metric ton ($1,180.82/metric ton) if the milk

content is greater than 50 percent.126 A similar tariff regime exists for compound animal feeds,

with all compound feeds containing less than 10 percent milk by weight also subject to a

TRQ.

Most tariffs on oilseed meals, alfalfa, meat and fish meals, and byproducts in the EU are set

at zero. Tariffs on brans, sharps, and other milled grain residues range from 52 Ecu/metric

ton ($58.24/metric ton) to 105.7 Ecu/metric ton ($118.38/metric ton), depending on the starch

content of the product, while corn gluten tariffs range from free to 380 Ecu/metric ton

($425.60/metric ton), depending on the protein content. In addition, brans and sharps that are

derived from wheat and other cereals are subject to a TRQ. 
 

127 The 1998 exchange rate for Japan was ¥130.91 = $1.

 

128 The 1998 exchange rate for Canada was C$1.4835 = $1.

 

129 Hsin-Hui Hsu and Frederick W. Crook, “Soybean Supply and Use Tables Published for

First Time in China,” Oil Crops Yearbook 1998, (Washington, DC: USDA-ERS, 1998), and

“Despite Rise of Market Forces, Continued Government Intervention in China’s Soybean

Economy Adds Uncertainty in World Oilseed Markets,” Oil Crops Yearbook 1998 (Washington,

DC: USDA-ERS, 1998).

 

130 USDA, FAS, “Soybean Meal Trade in China Will Slow with 13 Percent Value-Added

Tax,” Oilseeds: World Markets and Trade, Circular Series FOP 04-99, Apr. 1999.

31

Tariffs in Japan for feed products are generally low, with most products entering Japan dutyfree. Two major exceptions are dog and cat food and compound animal feeds. For dog and cat

food, products that contain 10 percent or more lactose by weight are assessed a ¥63/kg

($0.48/kg) tariff, plus a ¥6.33/kg ($0.05/kg) charge for every 1 percent quantity of lactose by

weight that exceeds 10 percent.127 Most other dog and cat foods enter Japan duty-free.

Likewise, compound animal feeds with 10 percent or more lactose by weight are subject to

a similar tariff structure (unless they are being fed to veal cattle), involving a ¥58.33/kg

($0.45/kg) tariff plus ¥5.87/kg ($0.04/kg) for every 1 percent quantity of lactose by weight

that exceeds 10 percent. Premixed feeds that are less than 10 percent lactose enter duty-free

or, in the case of vitamin supplements, are assessed a 3.7 percent ad valorem tariff. Two other

feed products enter Japan with a nonzero tariff. Oilseed flours enter Japan at a 5.1 percent ad

valorem tariff rate, while wheat gluten receives a significant duty of 22.5 percent ad valorem.

As a result of the NAFTA, almost all U.S. exports of animal feed products enter Canada dutyfree. The major exception relates to milk-containing compound feed products. Canada

maintains a TRQ on feed products that contain 50 percent or more of non-fat milk solids. Inquota imports of dairy-based compound feed products enter Canada duty-free, while overquota imports face a significant tariff of 217.5 percent ad valorem, but not less than

C$1.74/kg ($1.17/kg).128

Animal feed tariffs have been declining in Mexico as a result of the NAFTA, though most

tariffs remained between 5 and 7.5 percent ad valorem in 1998. Products that enter duty-free

are wastes and residues of the milling and processing of nongrain or nonoilseed crops. Protein

feeds, such as oilseed meals, corn gluten, and meat and fish meals face tariffs of 7.5 percent

ad valorem. Brans of milled grains and dog and cat foods are assessed duties of 5 percent ad

valorem. Tariffs on compound animal feeds vary between zero and 10 percent ad valorem.

Most tariffs on feed products in China are set at 5 percent ad valorem. Compound feed

preparations face tariffs between 5 and 8 percent ad valorem. The tariff on pet food is 30

percent ad valorem, while soy flour has a 40-percent ad valorem tariff and alfalfa and hay

products are assessed a 15-percent ad valorem tariff. The tariff structure in China has

contributed to strong growth in soybean meal imports. Unlike raw soybeans, which are subject

to both a 3-percent ad valorem tariff and 13-percent value-added tax, soybean meal imports

are only subject to a 5-percent ad valorem tariff. This has placed increasing pressure on

domestic processors of soybean meal, as they are finding it difficult to compete with increased

imports of soybean meal.129 On January 1, 1999, the Chinese Government began applying the

13-percent value-added tax to soybean meal imports as well.130
 

131 USITC staff interview with representatives of AFIA, July 20, 1999.

 

132 In a USITC telephone conversation with C. Gill, Editor, Feed International, Jan. 5, 2000,

it was noted that the volumes of manufactured feed reported in the Feed International survey

include commercial feed mill tonnage and integrator tonnage.

 

133 Clayton Gill, “First Asian feed slump . . . Now global stagnation?” Feed International, Jan.

1999, p. 4.

 

134 Ibid., p. 8.

32

Nontariff measures

There are few nontariff measures in the animal feed industry. Increasingly, however, concerns

over genetically modified organisms have restricted trade with the EU, mainly with respect to

feed corn. Feed regulations also impede trade with Canada. The Canadian Food Inspection

Agency uses what are known as Table 3 regulations from the Feeds Act to determine the

requirements, in terms of nutrition, label claims, and so forth, that compound feeds must meet

in order to be sold in Canada. Any Canadian firm that exceeds the requirements of the Table

3 regulations is exempt from registering its feed. However, feeds from foreign sources,

including the United States, must register any compound feeds that enter Canada, regardless

of whether the feed meets or exceeds the standards spelled out in the Table 3 regulations. The

application of these laws often results into delays of up to 7 weeks for the approval of new

U.S. feeds into Canada.131

FOREIGN INDUSTRY PROFILE

Overview of World Market

The only world production data available for the animal feed industry are for manufactured

feed production, which includes compound feed and pet food. A 1998 survey by Feed

International estimated global manufactured feed production132 (excluding on-farm

production) at 575 million metric tons, down by 5 percent from 1997.133 Table B-35

summarizes the survey results for world feed production in 1998. The United States is the

world’s largest producer of manufactured feed at 140 million metric tons. The EU ranks

second in feed production at 115 million metric tons, followed by China (55 million metric

tons), Brazil (29 million metric tons), Japan (23 million metric tons), and Canada (19 million

metric tons). Thirty-five percent of the world’s manufactured feed consists of poultry feed,

with swine feed (31 percent) and dairy feed (17 percent) important secondary products. The

trend in the world market is towards greater consolidation of feed plants and integration of

feed mills with livestock production. Specialization of product lines has becoming increasingly

common in feed mills in developed countries, such as the United States and the EU.134
 

135 Ibid., p. 10.

 

136 USDA, FAS, “German Pet Food Market,” Bonn, AGR Report GM7034, July 1997, p. 2.

 

137 Ibid.

 

138 Ibid., pp. 4-5.

 

139 Hoepker, “Pet food offers industry members worldwide opportunities,” Feedstuffs, Jan. 5,

1998, found at Internet address http://www.feedstuffs.com/subscrip/1997/f0ls7001.htm, retrieved

Oct. 25, 1999.

 

140 Frederick W. Crook, Hsin-Hui Hsu, and Michael Lopez, “The Long-Term Boom in

China’s Feed Manufacturing Industry,” Agricultural Outlook, Number 267, Dec. 1999, p. 13.

33

Market Profiles

European Union

The EU is a significant producer of animal feed and feed products. Data from Feedstuffs show

that total EU production of commercial animal feed products (compound feeds and pet foods)

was 119 million metric tons in 1997 (table B-36). Swine feeds comprise roughly 35 percent

of EU production of animal feed products, followed by poultry feeds at 29 percent of

production. France is the largest producer of animal feed products in the EU, producing 23

million metric tons (19 percent of total EU production). Germany, the Netherlands, Spain, and

the United Kingdom are also major producers of animal feed products. Feed production in

France is concentrated in poultry feeds, with sizable production of swine and cattle feeds. In

Germany, cattle and swine feeds predominate. The Netherlands is the top EU producer of pet

foods and milk replacers and is a leader in the production of swine feed.

Feed production has been slowly declining in the EU in the past few years. EU feed producers

have been beset with regulations that have increased production costs.135 Moreover, problems

in Europe concerning BSE have dampened demand for feed. In the pet food industry, demand

varies by country. In Germany, pet food sales have grown by roughly 5 percent per year.136

Demand in Germany has been adversely affected by aging populations and single-person

households, both of which have limited interest in pets, and lower levels of disposable

income.137 Growth in the demand for pet food has been slow in France (roughly 3 percent per

year), though demand for premium products, especially those enriched with vitamins, is

increasing.138 In the United Kingdom, the volume of cat food sales during 1990-95 increased

by 5 percent, while dog food sales fell by 12 percent.139

China

The Chinese feed industry has been fueled by increased demand for livestock products.

According to USDA, manufactured feed production was 66 million metric tons in 1998,

including just under 56 million metric tons of compound feed, 9 million metric tons of

supplements, and over 1 million metric tons of premixes.140 In 1997, China had roughly

11,300 mills, down from 12,000 a year earlier, as the number of state-owned mills continues

to decline. While state-owned feed mills in China account for 37 percent of all feed mills, they

have experienced competition from cooperative feed mills, private feed mills, and joint
 

141 Ibid.

 

142 “A Brief Introduction on China’s Animal Husbandry.”

 

143 Crook, Hsu, and Lopez, “The Long-Term Boom in China’s Feed Manufacturing Industry,”

p. 16.

 

144 Clayton Gill, “Feed Manufacturing: An International Perspective,” ch. in Feed

Manufacturing Technology IV, ed. Robert R. McEllhiney (Arlington, VA: American Feed

Industry Association, Inc., 1994), pp. 22-23.

 

145 Crook, Hsu, and Lopez, “The Long-Term Boom in China’s Feed Manufacturing

Industry,”pp. 16-17.

 

146 Data obtained from figures in Gill, “Feed Manufacturing: An International Perspective,” p.

23 and Gill, “First, Asian feed slump . . . Now, global stagnation,” p. 6.

 

147 Gill, “First, Asian feed slump . . . Now, global stagnation,” p. 4.

 

148 USDOC, ITA, “Japan--Pet Foods and Supplies,” Market Research Report, Feb. 1998, p. 4.

 

149 Hoepker, “Pet food offers industry members worldwide opportunities.”

 

150 USDOC, ITA, “Japan--Pet Foods and Supplies,” p. 6.

 

151 Ibid., pp. 9 and 12.

 

152 Ibid., p. 12.

34

ventures.141 In 1996, the value of shipments from the feed industry totaled 71.87 billion yuan

($8.6 billion).142

The feed industry in China has shifted over the past decade from an industry dominated by

swine feed production to one geared towards the production of feeds for poultry and

aquaculture.143 The poultry industry in China is dominated by integrators that own both feed

mills and poultry production facilities.144 In 1998, poultry feed accounted for 48 percent of

the market for compound feed (27 million metric tons), with swine feed accounting for 42

percent (23 million metric tons) and aquaculture accounting for 7 percent (4 million metric

tons).145

Japan

The Japanese commercial feed industry has been in a slow decline over the past few years.

Data on compound feed production reveal a decline from 30 million metric tons in 1993 to 23

million metric tons in 1998.146 Feed demand has been dampened by lower meat consumption

in Japan and higher food imports.147 The pet food market in Japan, valued at $1.8 billion in

1997148, has been growing at a faster rate than the animal feed industry, although it has slowed

in recent years. The market grew rapidly over 1990-95, with total tonnage (domestic

production plus imports) increasing from 331,900 metric tons in 1990 to 664,400 metric tons

in 1995.149 In 1995, however, the rate of growth in the pet food market fell to 2 percent in

volume terms, with 4 percent growth in 1996. The slowdown in domestic growth is attributed

to high levels of competition within the domestic industry.150 More than one-half of the pet

food market in Japan is supplied by imports. The United States and Australia are the main

suppliers of pet food to Japan, though some Japanese producers also contract out production

to countries in Southeast Asia, where costs are lower.151 The domestic industry also relies

heavily on imports of raw materials, such as grains and byproducts.152
 

153 Jorge A. Cassinelli, “Explosive growth: Brazilian integrators lead with poultry and pigs,”

Feed International, Aug. 1998, p. 7.

 

154 Ibid.

 

155 USDA, FAS, “Pet Food Market in Brazil,” Brasilia, GAIN Report BR9608, Feb. 1999, p.

1.

 

156 Ibid., pp. 2-3.

 

157 Ibid., p. 5.

 

158 ANAC was formerly known as the Canadian Feed Industry Association (CFIA).

 

159 “The Canadian feed industry: a snapshot,” Feedstuffs 1999 Reference Issue, p. 21.

 

160 “CFIA: Facts and Figures,” found at Internet address http://www.cfia-aciaa.ca/e_facts.htm,

retrieved on May 27, 1999.

 

161 “The Canadian feed industry: a snapshot,” Feedstuffs 1999 Reference Issue, p. 21.

 

162 “The Canadian Feed Industry: Sub-Sector Profile,” found at Internet address

http://www.agr.ca/food/facts/e_profile/feed/feed-pro.html, retrieved May 27, 1999.

 

163 Ibid.

 

164 Ibid.

35

Brazil

The Brazilian feed industry has been growing at a rapid rate. Data on commercial compound

feed production show that compound feed production in 1998 was projected at over 30 million

metric tons, representing a 50-percent increase over the levels 5 years ago.153 Feed demand has

been fueled by rapid development of the livestock sector, particularly poultry and swine.154

Brazil has also become a major producer of soybean meal, spurred on by the expansion of

soybean production. The pet food market has expanded rapidly, with USDA reporting a 57-

percent annual increase in the market since 1995.155 Dog food is produced domestically by

Brazilian and multinational firms, while most cat food and premium products are imported.156

Imports are gradually being displaced by increased domestic production.157 USDA reports

domestic production of pet food in 1997 at 550,000 metric tons, with sales valued at $333

million.

Canada

Canada is a relatively small producer of animal feed products. The Animal Nutrition

Association of Canada (ANAC)158 estimates that there were 500 commercial feed producers

employing 8,800 people in Canada in 1998, of which over two-thirds were located in Ontario

and Quebec.159 Eighty-five percent of production is composed of swine, dairy, and poultry

feeds.160 Complete feeds are produced in Ontario, Quebec, Manitoba, and Alberta.161 Pet food

production is concentrated in Ontario, while alfalfa production is centered in Alberta and

Saskatchewan.162 There is considerable concentration in both the Canadian feed and pet food

industry among commercial manufacturers. According to Agriculture and Agri-Food Canada,

70 percent of commercial feed production is produced by less than 10 companies while six

companies (four multinational, two domestically owned) account for most pet food

production.163

The Canadian feed industry is quite similar to the U.S. feed industry in terms of structure and

relative market trends. As in the United States, the feed industry in Canada services local

markets. There are also growing trends towards increased on-farm mixing, greater vertical

integration of feed mills, and a decline in feed establishments.164 ANAC reports that roughly
 

165 “The Canadian feed industry: a snapshot,” p. 21.

 

166 Ibid.

 

167 “The Canadian Feed Industry: Sub-Sector Profile.”

 

168 George Myles and Marilyn Bailey, “In Canada, a New Competitive Edge,” AgExporter,

Jan. 1999, p. 8.

 

169 “The Canadian Feed Industry: Sub-Sector Profile.”

 

170 Castaldo, “The North American Feed Industry,” p. 15.

 

171 “The feed industry in Mexico,” Feedstuffs 1998 Reference Issue, p. 22.

 

172 Jose Garcea-Vega and Gary W. Williams, “The Mexican Livestock, Meat, and Feed

Industries: Economic Structure and Government Policy,” TAMRC International Market Research

Report No. IM-1-96, July 1996, found at Internet address

http://tamrc.tamu.edu/tamrc/pubs/im196.htm, retrieved Aug. 6, 1999.

36

one-half of the feed produced in Canada in 1998 was mixed on-farm.165 Domestic sales of

complete feeds, supplements, and premixes were valued at $3.5 billion in 1998.166 Domestic

pet food production is primarily geared toward branded and private-label manufacturing, with

much of the high-end speciality market (i.e. the premium nutrition market) dominated by U.S.

imports.167 USDA estimated the Canadian pet food market to be $650 million in 1997.168 The

majority of Canadian exports consist of pet foods, alfalfa, and complete feeds. The Canadian

feed industry relies heavily on imports of vitamins, minerals, and amino acids to supplement

its production of complete feeds.169

Mexico

Feed production has grown rapidly in Mexico. Data on commercial compound feed production

reveal that compound feed production totaled 15 million metric tons in 1997 (table B-37), up

from 11 million metric tons in 1993.170 The Mexican feed industry consisted of 360 feed

plants in 1997, with a total production capacity of 20 million metric tons.171 Feed production

in Mexico is dominated by layer and broiler feeds, which comprised 7.2 million metric tons,

or 48 percent of the feed produced in 1997 (table B-37). Swine feed (3.4 million metric tons)

and dairy feed (2.8 million metric tons) are also major feeds produced in Mexico (table B-37).

The major ingredient feeds used in Mexico are sorghum and soybean meal. Protection of corn

(through high farm prices) and regulations limiting corn use for feed have prompted the use

of sorghum instead of corn in the Mexican feed market.172
 

173 Castaldo, “The North American Feed Industry,” p. 15.

 

174 Ibid.

 

175 “The Pet Food Market in Mexico, July 1998,” Team Canada Market Research Centre and

the Canadian Trade Commissioner Service, found at Internet address http://atnriae.agr.ca/public/htmldocs/e2124.htm, retrieved Oct. 5, 1999.

 

176 Ibid.

37

As in the United States and Canada, integrated feed production is a burgeoning trend. All

layers and a sizable majority of broilers (85 percent) are produced by integrators, which own

feed mills and livestock production facilities.173 Unlike the United States and Canada,

however, there is limited demand for on-farm mixing of feeds in Mexico. Complete feeds are

preferred to supplements or individual ingredient feeds, given capital constraints among

livestock producers.174 The pet food sector in Mexico is dominated by dog food sales, which

represented over 80 percent of sales in 1995.175 A majority of production (55 percent) is

supplied by three American multinationals based in Mexico, with Mexican-owned production

focusing on the lower end of the market.176

APPENDIX A

EXPLANATION OF TARIFF AND TRADE

AGREEMENT TERMS
A-2

TARIFF AND TRADE AGREEMENT

TERMS

In the Harmonized Tariff Schedule of the United States (HTS), chapters 1 through 97 cover

all goods in trade and incorporate in the tariff nomenclature the internationally adopted

Harmonized Commodity Description and Coding System through the 6-digit level of product

description. Subordinate 8-digit product subdivisions, either enacted by Congress or

proclaimed by the President, allow more narrowly applicable duty rates; 10-digit

administrative statistical reporting numbers provide data of national interest. Chapters 98 and

99 contain special U.S. classifications and temporary rate provisions, respectively. The HTS

replaced the Tariff Schedules of the United States (TSUS) effective January 1, 1989.

Duty rates in the general subcolumn of HTS column 1 are normal trade relations rates, many

of which have been eliminated or are being reduced as concessions resulting from the Uruguay

Round of Multilateral Trade Negotiations. Column 1-general duty rates apply to all countries

except those listed in HTS general note 3(b) (Afghanistan, Cuba, Laos, North Korea, and

Vietnam) plus Serbia and Montenegro, which are subject to the statutory rates set forth in

column 2. Specified goods from designated general-rate countries may be eligible for reduced

rates of duty or for duty-free entry under one or more preferential tariff programs. Such tariff

treatment is set forth in the special subcolumn of HTS rate of duty column 1 or in the general

notes. If eligibility for special tariff rates is not claimed or established, goods are dutiable at

column 1-general rates. The HTS does not enumerate those countries as to which a total or

partial embargo has been declared.

The Generalized System of Preferences (GSP) affords nonreciprocal tariff preferences to

developing countries to aid their economic development and to diversify and expand their

production and exports. The U.S. GSP, enacted in title V of the Trade Act of 1974 for 10

years and extended several times thereafter, applies to merchandise imported on or after

January 1, 1976 and before the close of September 30, 2001. Indicated by the symbol "A",

"A*", or "A+" in the special subcolumn, the GSP provides duty-free entry to eligible articles

the product of and imported directly from designated beneficiary developing countries, as set

forth in general note 4 to the HTS.

The Caribbean Basin Economic Recovery Act (CBERA) affords nonreciprocal tariff

preferences to developing countries in the Caribbean Basin area to aid their economic

development and to diversify and expand their production and exports. The CBERA, enacted

in title II of Public Law 98-67, implemented by Presidential Proclamation 5133 of November

30, 1983, and amended by the Customs and Trade Act of 1990, applies to merchandise

entered, or withdrawn from warehouse for consumption, on or after January 1, 1984.

Indicated by the symbol "E" or "E*" in the special subcolumn, the CBERA provides duty-free

entry to eligible articles, and reduced-duty treatment to certain other articles, which are the

product of and imported directly from designated countries, as set forth in general note 7 to

the HTS.
A-3

Free rates of duty in the special subcolumn followed by the symbol "IL" are applicable to

products of Israel under the United States-Israel Free Trade Area Implementation Act of

1985 (IFTA), as provided in general note 8 to the HTS. 

Preferential nonreciprocal duty-free or reduced-duty treatment in the special subcolumn

followed by the symbol "J" or "J*" in parentheses is afforded to eligible articles the product

of designated beneficiary countries under the Andean Trade Preference Act (ATPA), enacted

as title II of Public Law 102-182 and implemented by Presidential Proclamation 6455 of July

2, 1992 (effective July 22, 1992), as set forth in general note 11 to the HTS.

Preferential free rates of duty in the special subcolumn followed by the symbol "CA" are

applicable to eligible goods of Canada, and rates followed by the symbol "MX" are applicable

to eligible goods of Mexico, under the North American Free Trade Agreement, as provided

in general note 12 to the HTS and implemented effective January 1, 1994 by Presidential

Proclamation 6641 of December 15, 1993. Goods must originate in the NAFTA region under

rules set forth in general note 12(t) and meet other requirements of the note and applicable

regulations.

Other special tariff treatment applies to particular products of insular possessions (general

note 3(a)(iv)), products of the West Bank and Gaza Strip (general note 3(a)(v)), goods

covered by the Automotive Products Trade Act (APTA) (general note 5) and the Agreement

on Trade in Civil Aircraft (ATCA) (general note 6), articles imported from freely

associated states (general note 10), pharmaceutical products (general note 13), and

intermediate chemicals for dyes (general note 14).

The General Agreement on Tariffs and Trade 1994 (GATT 1994), pursuant to the

Agreement Establishing the World Trade Organization, is based upon the earlier GATT 1947

(61 Stat. (pt. 5) A58; 8 UST (pt. 2) 1786) as the primary multilateral system of disciplines

and principles governing international trade. Signatories' obligations under both the 1994 and

1947 agreements focus upon most-favored-nation treatment, the maintenance of scheduled

concession rates of duty, and national treatment for imported products; the GATT also

provides the legal framework for customs valuation standards, "escape clause" (emergency)

actions, antidumping and countervailing duties, dispute settlement, and other measures. The

results of the Uruguay Round of multilateral tariff negotiations are set forth by way of

separate schedules of concessions for each participating contracting party, with the U.S.

schedule designated as Schedule XX. Pursuant to the Agreement on Textiles and Clothing

(ATC) of the GATT 1994, member countries are phasing out restrictions on imports under

the prior "Arrangement Regarding International Trade in Textiles" (known as the Multifiber

Arrangement (MFA)). Under the MFA, which was a departure from GATT 1947

provisions, importing and exporting countries negotiated bilateral agreements limiting textile

and apparel shipments, and importing countries could take unilateral action in the absence or

violation of an agreement. Quantitative limits had been established on imported textiles and

apparel of cotton, other vegetable fibers, wool, man-made fibers or silk blends in an effort to

prevent or limit market disruption in the importing countries. The ATC establishes

notification and safeguard procedures, along with other rules concerning the customs

treatment of textile and apparel shipments, and calls for the eventual complete integration of

this sector into the GATT 1994 over a ten-year period, or by Jan. 1, 2005.

 

APPENDIX B

STATISTICAL TABLES
B-2

Table B-1

Major producer locations and principal consumers of energy feeds

Feed Ingredient Location Principal animals fed

Corn ................. Midwest (Illinois, Iowa, Indiana, Missouri,

Minnesota), Nebraska

Swine, poultry, dairy cattle, beef

cattle

Sorghum .............. Central and Southern Plains (Kansas,

Texas, Nebraska)

Beef cattle, swine, poultry

Barley ................ Pacific Northwest (Idaho, Washington),

Northern Plains (North Dakota, Montana,

Minnesota)

Beef cattle, sheep, swine

Oats ................. Upper Midwest, Northern Plains Horses, dairy cattle, rabbits

Wheat ................ Southern Plains (Kansas, Nebraska),

Southwest 

Beef cattle, poultry, swine

Wheat by-products ...... Minnesota, New York, Kansas Beef cattle, swine, poultry

Hominy feed ........... Illinois, Tennessee Dairy cattle

Beet pulp .............. California, North Dakota, Minnesota, Idaho Dairy cattle

Citrus pulp ............. California, Florida Dairy cattle

Source: Compiled from information in Mark S. Ash, Animal Feeds Compendium, USDA, ERS, Agricultural

Economic Report No. 656, 1992; Tilden Wayne Perry, Arthur E. Cullison, and Robert S. Lowrey, Feeds &

Feeding, 5th ed., (Upper Saddle River, NJ: Prentice Hall, 1999); and Peter R. Cheeke, Applied Animal Nutrition:

Feeds and Feeding, 2d ed., (Upper Saddle River, NJ: Prentice Hall, 1999).

Table B-2

Major producer locations and principal consumers of protein feeds

Feed Ingredient Location Principal animals fed

Soybean meal ................ Midwest (Illinois, Iowa, Minnesota,

Ohio)

Swine, poultry, cattle

Cottonseed meal .............. Central and Southern Plains (Texas,

Kansas), California

Dairy cattle, beef cattle

Canola meal ................. North Dakota, Minnesota, Idaho,

Montana

Dairy cattle, beef cattle, swine

Sunflowerseed meal ........... Upper Midwest/Northern Plains (North

Dakota, South Dakota, Minnesota)

Dairy cattle, beef cattle

Linseed meal ................. Upper Midwest/Northern Plains (North

Dakota, South Dakota, Minnesota)

Horses, dairy cattle, beef cattle

Corn gluten feed and meal ....... Midwest Dairy cattle

Brewers grains ................ California, Texas, Wisconsin, Florida Dairy cattle

Distillers grains ............... Kentucky, Indiana Dairy cattle, swine, poultry

Meat and bone meal ........... Midwest, Southern Plains, Southeast Swine, poultry

Fish meal ................... Gulf/Atlantic coasts (menhaden meal),

Pacific coasts (tuna, anchovy)

Swine, poultry, fish

Source: Compiled from information in Mark S. Ash, Animal Feeds Compendium, USDA, ERS, Agricultural

Economic Report No. 656, 1992; Tilden Wayne Perry, Arthur E. Cullison, and Robert S. Lowrey, Feeds &

Feeding, 5th ed., (Upper Saddle River, NJ: Prentice Hall, 1999); and Peter R. Cheeke, Applied Animal Nutrition:

Feeds and Feeding, 2d ed., (Upper Saddle River, NJ: Prentice Hall, 1999).
B-3

Table B-3

Major producer locations and principal consumers of roughages and silages

Feed Ingredient Location Principal animals fed

Alfalfa ................... Southwest (Nevada, New Mexico,

Utah), Midwest (Wisconsin)

Dairy cattle, Beef cattle, sheep,

horses

Red clover ................ Midwest, Northeast Beef cattle, dairy cattle

Lespedeza ............... Southern Plains, Southeast Beef cattle, dairy cattle

Timothy .................. Midwest, Northeast Horses, beef cattle, dairy cattle

Orchardgrass .............. Midwest, Northeast Beef cattle, dairy cattle

Fescue .................. Southeast Beef cattle

Bromegrass ............... Northern Plains Cattle, sheep

Source: Compiled from information in Mark S. Ash, Animal Feeds Compendium, USDA, ERS, Agricultural

Economic Report No. 656, 1992; Tilden Wayne Perry, Arthur E. Cullison, and Robert S. Lowrey, Feeds &

Feeding, 5th ed., (Upper Saddle River, NJ: Prentice Hall, 1999); and Peter R. Cheeke, Applied Animal Nutrition:

Feeds and Feeding, 2d ed., (Upper Saddle River, NJ: Prentice Hall, 1999).
B-4

Table B-4

Primary feed production by feed type and region1, 1998

Region

Starter,

grower,

layer,

breeder

feed

Broiler

feed

Turkey

feed

Dairy

feed

Beef

cattle

 and

 lamb

 feed

Swine

feed

Other

 feed Total

——–—— Quantity (thousand metric tons, percentage feed use by region)

——–——

Northeastern States .... 2,324

(15.0%)

2,752

(7.3%)

423

(5.2%)

2,804

(18.2%)

89

(0.5%)

329

(2.0%)

916

(10.9%)

9,637

(8.0%)

Lake States .......... 1,356

(8.8%)

385

(1.0%)

1,780

(21.7%)

1,998

(12.9%)

360

(2.0%)

2,328

(14.4%)

460

(5.5%)

8,667

(7.2%)

Mountain States ....... 458

(3.0%)

(

2

) (

2

) 1,440

(9.3%)

2,519

(13.6%)

416

(2.6%)

490

(5.8%)

5,323

(4.4%)

Corn Belt ............ 3,217

(20.8%)

4,036

(10.7%)

1,459

(17.8%)

1,418

(9.2%)

1,501

(8.1%)

7,592

(47.1%)

2,268

(27.0%)

21,491

(17.9%)

Appalachian States .... 1,061

(6.9%)

5,348

(14.2%)

2,409

(29.4%)

827

(5.4%)

196

(1.1%)

2,512

(15.6%)

630

(7.5%)

12,983

(10.8%)

Northern Plains ....... 559

(3.6%)

6

(0.0%)

140

(1.7%)

290

(1.9%)

4,629

(25.1%)

1,649

(10.2%)

376

(4.5%)

7,649

(6.4%)

Southeastern States ... 2,614

(16.9%)

12,169

(32.3%)

350

(4.3%)

2,166

(14.0%)

353

(1.9%)

227

(1.4%)

733

(8.7%)

18,612

(15.5%)

Delta States .......... 1,387

(9.0%)

9,465

(25.1%)

784

(9.6%)

209

(1.4%)

253

(1.4%)

264

(1.6%)

1,335

(15.9%)

13,697

(11.4%)

Southern Plains ....... 1,223

(7.9%)

3,480

(9.2%)

344

(4.2%)

1,114

(7.2%)

7,580

(41.1%)

717

(4.4%)

896

(10.7%)

15,354

(12.8%)

Pacific States ......... 1,288

(8.3%)

(

2

) 513

(6.3%)

3,163

(20.5%)

981

(5.3%)

94

(0.6%)

302

(3.6%)

6,341

(5.3%)

Total ............... 15,487

(100.0%)

37,641

(100.0%)

8,202

(100.0%)

15,429

(100.0%)

18,461

(100.0%)

16,128

(100.0%)

8,406

(100.0%)

119,754

(100.0%)

1

 Region definitions are as follows: Northeastern States (Maine, New Hampshire, Vermont, New York,

Massachusetts, Rhode Island, Connecticut, New Jersey, Maryland, Pennsylvania, Delaware); Lake States

(Minnesota, Wisconsin, Michigan); Mountain States (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona,

New Mexico); Corn Belt (Iowa, Missouri, Illinois, Indiana, Ohio); Appalachian States (Virginia, West Virginia, North

Carolina, Tennessee, Kentucky); Northern Plains (North Dakota, South Dakota, Nebraska, Kansas); Southeastern

States (South Carolina, Georgia, Alabama, Florida); Delta States (Arkansas, Louisiana, Mississippi); Southern

Plains (Oklahoma, Texas); and Pacific States (California, Oregon, Washington).

2 Not available.

Source: Data derived from Feedstuffs 1999 Reference Issue and Domenick J. Castaldo, “The North American

Feed Industry”, ch., in Feed Manufacturing Technology IV, ed. Robert R. McEllhiney (Arlington, VA: American Feed

Industry Association, Inc., 1994), p. 14. Figures may not add up to totals shown due to rounding.
B-5

Table B-5

Animal feed: Industrial statistics on employment and production for selected products, 1992-96

Production workers

Product/Year Number Manhours Wages

Value-added of

manufacturing

Cost of 

materials

Value of

shipments

New capital

expenditures

1,000

persons

Million

 manhours

———————————————— Million dollars

——————————————————

Pet food (SIC 2047):

1992 ................ 10.5 22.4 301.5 3,729.9 3,295.5 7,023.9 179.8

1993 ................ 10.7 23.5 323.5 3,643.0 3,591.7 7,245.3 141.4

1994 ................ 9.8 22.1 302.9 3,477.5 3,465.2 6,938.2 191.2

1995 ................ 9.6 22.0 301.0 3,279.1 3,961.9 7,253.0 233.3

1996 ................ 10.1 23.3 330.5 3,496.6 4,113.4 7,572.2 210.5

Compound feed (SIC

2048):

1992 ................ 19.7 41.5 417.1 2,875.6 11,487.7 14,373.9 183.6

1993 ................ 19.1 41.4 416.3 3,783.1 11,068.3 14,857.0 154.4

1994 ................ 19.1 41.2 414.4 4,148.8 10,911.5 15,063.6 223.2

1995 ................ 20.3 43.0 441.6 4,943.4 11,421.7 16,327.1 215.0

1996 ................ 19.2 41.6 427.4 4,050.2 14,061.6 18,075.0 200.4

Source: U.S. Census Bureau, Annual Survey of Manufactures, various years.
B-6

Table B-6

Feed ingredients used by commercial feed mills (percent), 1997-98

Feed category Feed type 1997 1998

——— Percentage of mills ———

Grains ................... Barley 21.8 25.8

High oil corn 2.0 1.6

Oats 53.5 45.1

Sorghum 15.8 14.5

Wheat 38.6 40.3

Oilseed meals ............. Canola 34.7 38.7

Peanut 9.9 4.8

Sunflower 48.5 43.5

By-products ............... Bakery 32.7 25.8

Blood 63.4 70.9

Corn gluten 58.4 58.0

Distillers grains 68.3 64.5

Feather 34.7 40.3

Fish 74.3 74.1

Meat and bone 76.2 67.7

Dried plasma 46.5 48.3

Porcine by-product 26.7 43.5

Poultry by-product 13.9 24.1

Binders .................. Clay 11.9 17.7

Lignosulfonate 50.5 45.1

Wheat 13.9 8.1

Source: Derived from table in Philip Lobo, “How mills are managed: Capacity is up, capacity used is down,”

Feed Management, Jan. 1999, p. 18.
B-7

Table B-7

Prices for selected varieties of feed and feed by-products, 1993-1997

Marketing

year1

Soybean

meal

44 percent

solvent

Decatur,

Illinois

Cottonseed

meal,

41 percent

solvent

Memphis

Corn gluten

feed,

21 percent

protein,

Illinois

Corn gluten

 meal,

60 percent

protein,

Illinois

Meat and

 bone meal,

Central U.S.

Fish meal,

67 percent

protein,

East Coast

Distillers dried

grains,

Lawrenceburg,

Indiana

Wheat

middlings,

Kansas City,

Missouri

Dehydrated

alfalfa meal,

17 percent

protein, 

Kansas City,

Missouri

———————————————————————————— Dollars per ton2 —————————————————————————————

1993 ......... 181.82 168.36 88.62 286.61 206.81 336.88 123.79 81.51 125.15

1994 ........ 151.77 112.64 82.77 221.95 170.51 357.52 106.70 65.04 118.17

1995 ........ 217.27 186.12 116.47 319.35 222.07 468.11 151.37 118.08 128.98

1996 ........ 260.37 191.47 93.05 341.50 272.44 499.61 142.87 91.18 142.45

1997 ........ 186.55 150.40 69.65 290.45 192.56 555.20 109.76 76.30 129.62

1 Marketing year begins Sept. 1.

2

 Tons are short tons, not metric tons.

Source: Compiled from statistics in USDA, ERS, Feed Situation and Outlook Yearbook, Apr. 1999.
B-8

Table B-8

USDA market development funding, by program and feed product association, 1994-981

Program 1994 1995 1996 1997 1998

——————— Thousand dollars ——————

Market Access Program:

American Soybean Association ................... 1,720 1,280 1,215 2,204 1,409

Millers National Federation ...................... 0 0 0 0 0

National Cottonseed Products Association ........... 0 0 0 0 0

National Hay Association ........................ 0 0 0 0 0

National Sunflower Association ................... 620 1,130 980 822 810

Pet Food Institute ............................. 1,140 1,230 420 596 923

Protein Grain Products International ............... 0 0 0 0 0

U.S. Grains Council ............................ 3,650 3,220 2,670 2,865 3,043

Foreign Market Development: 

American Soybean Association ................... 6,629 4,250 5,461 5,249 5,293

Millers National Federation ...................... 11 0 13 7 9

National Cottonseed Products Association ........... 177 0 116 125 154

National Hay Association ........................ 40 10 42 48 50

National Sunflower Association ................... 242 110 100 174 259

Pet Food Institute ............................. 0 0 0 0 0

Protein Grain Products International ............... 0 86 10 11 18

U.S. Grains Council ............................ 3,700 2,829 3,972 5,551 4,341

Total: 

American Soybean Association ................... 8,349 5,530 6,676 7,453 6,702

Millers National Federation ...................... 11 0 13 7 9

National Cottonseed Products Association ........... 177 0 116 125 154

National Hay Association ........................ 40 10 42 48 50

National Sunflower Association ................... 862 1,240 1,080 996 1,069

Pet Food Institute ............................. 1,140 1,230 420 596 923

Protein Grain Products International ............... 0 86 10 11 18

U.S. Grains Council ............................ 7,350 6,049 6,642 8,416 7,384

1

 Year represents fiscal year allocation.

Source: Compiled from statistics of the U.S. Department of Agriculture, Foreign Agricultural Service.
B-9

Table B-9

Consumption of major feed ingredients1, 1993-972

Feed type product 1993 1994 1995 1996 1997

Percentage

change

93/97

——–— Quantity (thousand metric tons) ———

Oilseed meals:

Soybean ........................ 22,936 24,079 24,141 24,784 26,208 14.3

Cottonseed ...................... 2,393 2,965 2,686 2,824 2,682 12.1

Linseed ........................ 103 95 104 99 111 7.8

Peanut ......................... 103 175 164 128 86 -16.5

Sunflower ....................... 291 565 434 419 482 65.6

Canola ......................... 1,002 952 1,172 1,102 1,552 54.9

Total ...................... 26,828 28,831 28,701 29,356 31,121 16.0

Animal proteins:

Tankage and meat meal ............ 2,219 2,315 2,300 2,525 2,269 2.3

Fish meal ....................... 653 303 263 297 228 -65.1

Milk products .................... 426 420 381 389 375 -12.0

Total ....................... 3,298 3,038 2,944 3,211 2,872 -12.9

Grain protein feeds:

Corn gluten feed and meal .......... 827 126 799 3,599 3,247 292.6

Other feeds:

Wheat millfeeds .................. 6,746 6,591 6,601 6,398 6,575 -2.5

Rice millfeeds .................... 588 597 546 507 378 -35.7

Alfalfa meal ..................... 121 190 231 225 250 106.6

Fats and oils .................... 1,061 1,018 1,137 1,157 1,319 24.3

Miscellaneous by-products feeds ..... 1,390 1,404 1,418 1,432 1,446 4.0

Total ....................... 9,906 9,800 9,933 9,719 9,968 0.6

Total .......................... 40,859 41,795 42,377 45,885 47,208 15.5

1 Consumption refers to quantity fed.

2

 Quantities are calculated on a crop year basis, which begins Oct. 1

 

Source: USDA, Feed Outlook Yearbook, 1999.

Table B-10

Compound animal feed: U.S. shipments, exports of domestic merchandise, imports for

consumption, and apparent U.S. consumption, 1993-97

Year U.S. shipments1

U.S. 

exports

U.S. 

imports

Apparent 

U.S.

consumption

Ratio of

imports to

consumption

————————————— Million dollars ————————————— Percentage

1993 ......... 13,741 488 124 13,377 0.93

1994 ......... 13,782 539 161 13,404 1.20

1995 ......... 15,107 599 187 14,695 1.27

1996 ......... 17,105 538 230 16,797 1.37

1997 ......... 17,777 563 229 17,443 1.31

1

 U.S. shipments for 1993-96 are based on the value of product shipments as reported from the Bureau of

Economic Analysis, U.S. Department of Commerce for SIC code 2048. U.S. shipments for 1997 are based on the

value of product shipments as reported from the 1997 Economic Census, U.S. Census Bureau, for NAICS code

311119. Export and import figures are for HS 2309.90.

Source: Compiled from official statistics of the U.S. Department of Commerce.
B-10

Table B-11

Pet food: U.S. shipments, exports of domestic merchandise, imports for consumption, and

apparent U.S. consumption, 1993-97

Year U.S. shipments1

U.S. 

exports

U.S. 

imports

Apparent 

U.S.

consumption

Ratio of

imports to

consumption

————————————— Million dollars

—————————————

Percentage

1993 ......... 6,534 315 77 6,296 1.22

1994 ......... 6,277 386 84 5,975 1.41

1995 ......... 6,504 433 101 6,172 1.64

1996 ......... 7,195 534 127 6,788 1.87

1997 ......... 8,262 621 144 7,785 1.85

1 U.S. shipments for 1993-96 are based on the value of product shipments as reported from the Bureau of

Economic Analysis, U.S. Department of Commerce for SIC code 2047. U.S. shipments for 1997 are based on the

value of product shipments as reported from the 1997 Economic Census, U.S. Census Bureau, for NAICS code

311111. Export and import figures are for HS 2309.10.

Source: Compiled from official statistics of the U.S. Department of Commerce.

Table B-12

Annual sales of dog and cat food, 1994-98

Pet food type 1994 1995 1996 1997 1998

Percentage

change

94/98

——————— Quantity (million dollars) ——–—————

Dry dog food ............... 2,844 3,052 3,115 3,276 3,471 22.0

Canned dog food ............ 1,186 1,228 1,080 1,098 1,120 -5.6

Dog treats ................. 1,015 1,090 1,114 1,155 1,204 18.6

Semi-moist dog food ......... 95 102 103 103 105 10.5

Total dog food .......... 5,140 5,472 5,411 5,632 5,900 14.8

Canned cat food ............ 1,911 2,010 2,041 2,199 2,414 26.3

Dry cat food ................ 1,538 1,613 1,705 1,872 2,026 31.7

Moist cat food .............. 110 109 102 95 91 -17.3

Cat treats .................. 77 100 105 116 129 67.5

Total cat food ........... 3,636 3,832 3,954 4,282 4,660 28.2

Total ................... 8,776 9,304 9,364 9,914 10,560 20.3

Source: Compiled from data from the Pet Food Institute and “The Petfood Report”, Pet Food Industry,

Sept./Oct. 1999. Figures may not add to totals shown due to rounding.
B-11

Table B-13

Corn gluten feed and meal: U.S. shipments, exports of domestic merchandise, imports for

consumption, and apparent U.S. consumption, 1993-97

Product marketing

year1

U.S.

shipments2

U.S. 

exports3

U.S. 

imports4

Apparent 

U.S.

consumption

Ratio of 

imports to

consumption

 ——————— Quantity (million kilograms) ——————— Percentage

Corn gluten feed:

1993 ............. 7,253 5,653 96 1,696 5.65

1994 ............. 7,609 6,220 84 1,473 5.70

1995 ............. 7,203 5,485 96 1,814 5.27

1996 ............. 7,576 5,223 96 2,449 3.93

1997 ............. 7,963 4,948 72 3,087 2.33

———————— Value (million dollars) ————————— 

1993 ............. 707 637 10 80 12.50

1994 ............. 693 660 8 41 19.51

1995 ............. 923 711 12 224 5.36

1996 ............. 775 603 11 184 6.01

1997 ............. 610 441 8 177 4.52

——————— Quantity (million kilograms) ———————

Corn gluten meal:

1993 ............. 1,421 735 6 692 0.87

1994 ............. 1,490 631 10 869 1.15

1995 ............. 1,411 771 14 654 2.14

1996 ............. 1,484 778 13 719 1.81

1997 ............. 1,560 769 12 803 1.49

———————— Value (million dollars) —————————

1993 ............. 448 224 1 225 0.44

1994 ............. 364 177 2 189 1.06

1995 ............. 496 252 4 247 1.61

1996 ............. 557 279 4 282 1.42

1997 ............. 498 261 4 241 1.66

1

 Marketing year starts Sept. 1.

2

 Shipments estimated using Corn Refiners Association production data on HFCS, glucose, starch, and

ethanol production. It was assumed that 1 bushel of corn yields 13.48 lbs of corn gluten feed and 2.64 lbs. of

corn gluten meal, based on estimates by the Corn Refiners Association that were published in Peter A. Meyer,

“Corn buyers, sellers should refrain from ‘counting chickens’ yet,” Milling & Baking News, Oct. 20, 1998.

Shipment data is reported on a Sept.-Aug. marketing year.

3

 U.S. export data reported for Sept.-Aug. marketing year.

4

 U.S. import data reported for Sept.-Aug. marketing year.

Source: Compiled from statistics in Corn Refiners Association, Corn Annual 1999 and official statistics of the

U.S. Department of Commerce.
B-12

Table B-14

Soybean meal: U.S. shipments, exports of domestic merchandise, imports for consumption, and

apparent U.S. consumption, 1993-97

Product

marketing year U.S. shipments1

U.S. 

exports

U.S. 

imports

Apparent 

U.S.

consumption

Ratio of 

imports to

consumption

———————————— Million kilograms ———————————— Percentage

1993 ......... 27,740 4,321 33 23,452 0.14

1994 ......... 30,245 5,152 19 25,112 0.08

1995 ......... 29,570 4,761 41 24,850 0.16

1996 ......... 31,101 5,783 55 25,373 0.22

1997 ......... 34,701 8,103 14 26,612 0.05

————————————— Million dollars

—————————————

1993 ......... 5,548 965 7 4,589 0.15

1994 ......... 5,049 991 4 4,062 0.10

1995 ......... 7,067 1,232 10 5,845 0.17

1996 ......... 8,908 1,689 14 7,233 0.19

1997 ......... 7,121 1,914 3 5,210 0.06

1

 U.S. shipments are based on production values for the crop year starting Oct. 1 from statistics of USDA. U.S.

exports and imports are calculated from official statistics of the U.S. Department of Commerce for the year

beginning Oct. 1 to be consistent with shipment figures.

Source: Compiled from official statistics of the U.S. Department of Commerce and USDA.

Table B-15

Fish meal: U.S. shipments, exports of domestic merchandise, imports for consumption, and

apparent U.S. consumption, 1994-98

Year U.S. shipments1

U.S. 

exports

U.S. 

imports

Apparent 

U.S.

consumption

Ratio of

imports to

consumption

—————————— Thousand pounds ——————————— Percentage

1994 ......... 807,833 159,937 548,288 1,196,184 45.84

1995 ......... 667,240 176,981 139,101 629,360 22.10

1996 ......... 643,124 186,412 135,561 592,273 22.89

1997 ......... 724,668 216,289 142,049 650,428 21.84

1998 ......... 592,552 210,658 125,404 507,298 24.72

1

 U.S. shipments are based on production data from the U.S. Department of Commerce, National Marine

Fisheries Service.

Source: Compiled from official statistics of the U.S. Department of Commerce, National Marine Fisheries Service.
B-13

Table B-16

Wheat gluten: U.S. shipments, exports of domestic merchandise, imports for consumption, and

apparent U.S. consumption, 1993-97

Year U.S. shipments1

U.S. 

exports

U.S. 

imports

Apparent 

U.S.

consumption

Ratio of

imports to

consumption

———————————— Million kilograms ———————————— Percentage

1993 ......... 55 9 58 104 55.77

1994 ......... 60 3 78 136 57.78

1995 ......... 58 4 58 112 51.79

1996 ......... 49 4 71 116 61.21

1997 ......... 53 5 80 129 62.50

———————————— Million dollars —————————————

1993 ......... 81 5 68 144 47.22

1994 ......... 109 4 82 187 43.86

1995 ......... 87 6 74 155 47.74

1996 ......... 70 5 77 142 53.23

1997 ......... 71 6 86 152 56.95

1

 U.S. shipments are based on wholesale values for the year ending June 30 as reported in Wheat Gluten, Inv.

No. TA-201-67, USITC publication 3088, Mar. 1998. U.S. exports and imports are calculated from official statistics

of the U.S. Department of Commerce for the year ending June 30 to be consistent with shipment figures.

Source: Compiled from official statistics of the U.S. Department of Commerce and USITC questionnaires.

Table B-17

Production of primary feed, 1994-98

Feed type 1994 1995 1996 1997 1998

Percentage

change

 94/98

——–—— Quantity (thousand short tons)

————

Starter/grower/layer/breeder ......... 14,586 14,674 14,835 15,071 15,487 6.2

Broiler ......................... 33,257 34,726 36,065 36,788 37,641 13.2

Turkey ......................... 8,712 8,891 9,115 9,068 8,202 -5.9

Dairy .......................... 16,125 15,632 15,673 15,596 15,429 -4.3

Beef/sheep ..................... 19,054 19,728 18,285 18,227 18,461 -3.1

Hog ........................... 15,496 14,999 14,599 15,509 16,128 4.1

All other ........................ 7,702 8,002 8,011 8,096 8,406 9.1

Total ........................ 114,932 116,652 116,583 118,355 119,754 4.2

Source: Derived from table in Feedstuffs 1999 Reference Issue.
B-14

Table B-18

Production of major feed protein meals, 1993-971

Feed type 1993 1994 1995 1996 1997

Percentage

change

93/97

—————— Quantity (thousand short tons) 

——–————

Soybean meal .............. 30,514 33,269 32,527 34,211 38,171 25.1

Cottonseed meal ............ 1,563 1,830 1,748 1,752 1,770 13.2

Linseed meal ............... 160 158 167 185 194 21.3

Sunflowerseed meal ......... 360 718 504 484 564 56.7

Canola meal ............... 322 236 281 269 383 18.9

Corn gluten meal ............ 1,563 1,639 1,552 1,632 1,716 9.8

Corn gluten feed ............ 7,979 8,370 7,924 8,333 8,759 9.8

Fish meal ................. 404 334 322 362 296 -26.6

Total ................... 42,865 46,554 45,024 47,228 51,854 21.0

1 Quantities are calculated on a crop year basis, which begins Oct. 1 for soybean meal, cottonseed meal, and

sunflowerseed meal; June 1 for linseed meal and canola meal; and Sept. 1 for corn gluten meal and feed. For

fish meal, production figures are calendar year figures starting in 1994.

 

Source: Compiled from statistics from USDA, ERS and U.S. Department of Commerce, National Marine

Fisheries Service. Figures may not add to totals shown due to rounding.

Table B-19

Types of feeds produced by commercial feed mills (percent), 1997-98

Feed type 1997 1998

————— Percentage of mills ————

Beef .................................. 92.1 88.7

Dairy .................................. 92.1 91.9

Swine ................................. 87.1 87.0

Poultry ................................. 88.1 82.2

Sheep ................................. 75.2 70.9

Horse ................................. 78.2 70.9

Pet ................................... 5.9 11.2

Fish ................................... 7.9 9.6

Ratite .................................. 49.5 33.8

Source: Derived from table in Philip Lobo, “How mills are managed: Capacity is up, capacity used is down,” Feed

Management, Jan. 1999, p. 13.
B-15

Table B-20

Animal feed: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by selected countries, 1994-981

Market 1994 1995 1996 1997 1998

Percentage

change

 94/98

———————— Million dollars —————————

U.S. exports of domestic merchandise:

Canada ..................... 487.3 505.9 551.8 600.4 578.2 18.7

Japan ....................... 554.7 651.4 644.9 707.5 628.0 13.2

Netherlands .................. 371.7 405.0 396.2 349.7 252.3 -32.1

Mexico ...................... 291.2 214.6 238.8 212.7 256.2 -12.0

China ....................... 4.4 14.6 141.2 115.5 204.6 4,550.0

Philippines ................... 63.6 141.5 140.0 167.0 191.2 200.6

Spain ....................... 137.7 160.9 125.9 205.8 167.9 21.9

Germany .................... 84.2 97.1 129.6 121.5 96.6 14.7

United Kingdom ............... 159.9 163.4 169.7 166.1 129.7 -18.9

Ireland ...................... 136.2 155.0 131.3 124.2 126.7 -7.0

All other ..................... 1,191.5 1,312.3 1,705.2 2,066.5 1,685.2 41.4

Total ..................... 3,482.4 3,821.7 4,374.6 4,836.9 4,316.6 24.0

U.S. imports for consumption:

Canada ..................... 340.4 370.5 517.7 535.8 499.3 46.7

Japan ....................... 14.7 11.8 5.5 11.3 12.7 -13.6

Netherlands .................. 19.4 13.1 14.9 13.3 21.5 10.8

Mexico ...................... 0.6 5.4 13.2 13.8 7.0 1,066.7

China ....................... 5.7 5.7 6.5 13.5 9.8 71.9

Philippines ................... (

2

) 0.0 (

2

) 0.0 (

2

) (

3

)

Spain ....................... (

2

) (

2

) 0.1 0.2 0.4 (

3

)

Germany .................... 43.5 53.3 59.0 48.1 52.3 20.2

United Kingdom ............... 2.8 2.2 4.0 2.4 4.0 42.9

Ireland ...................... 5.6 1.8 2.6 3.5 2.0 -64.3

All other ..................... 180.0 116.3 156.0 141.1 150.3 -16.5

Total ..................... 612.7 580.1 779.5 783.0 759.3 23.9

U.S. merchandise trade balance:

Canada ..................... 146.9 135.4 34.1 64.6 78.9 -46.3

Japan ....................... 540.0 639.6 639.4 696.2 615.3 13.9

Netherlands .................. 352.3 391.9 381.3 336.4 230.8 -34.5

Mexico ...................... 290.6 209.2 225.6 198.9 249.2 -14.2

China ....................... -1.3 8.9 134.7 102.0 194.8 (

3

)

Philippines ................... 63.6 141.5 140.0 167.0 191.2 200.6

Spain ....................... 137.7 160.9 125.8 205.6 167.5 21.6

Germany .................... 40.7 43.8 70.6 73.4 44.3 8.8

United Kingdom ............... 157.1 161.2 165.7 163.7 125.7 -20.0

Ireland ...................... 130.6 153.2 128.7 120.7 124.7 -4.5

All other ..................... 1,011.5 1,196.0 1,549.2 1,925.4 1,534.9 51.7

Total ..................... 2,869.7 3,241.6 3,595.1 4,053.9 3,557.3 24.0

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 Less than $50,000.

3

 Not applicable.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-16

Table B-21

Compound animal feeds1: U.S. imports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

——————— Quantity (metric tons) ————————

Canada .................... 276,407 305,655 426,931 388,744 333,758 20.7

Germany ................... 2,830 3,595 4,127 3,241 3,954 39.7

Japan ..................... 1,212 1,075 548 1,116 1,373 13.3

China ...................... 1,189 1,794 2,086 4,467 4,489 277.5

Netherlands ................. 3,303 509 1,718 2,059 1,848 -44.1

Myanmar ................... 2,842 1,922 5,255 2,324 3,047 7.2

Ireland ..................... 4,199 320 861 2,719 2,441 -41.9

New Zealand ................ 2,412 1,348 1,423 4,128 2,074 -14.0

Italy ....................... 1,971 1,129 495 144 263 -86.7

Taiwan .................... 584 285 355 478 495 -15.2

All other .................... 10,308 7,032 9,448 16,910 7,236 -29.8

 Total .................... 307,257 324,664 453,248 426,330 360,978 17.5

——————— Value (thousand dollars) ———————

Canada .................... 77,825 97,628 144,144 146,446 138,588 78.1

Germany ................... 26,526 39,702 41,137 35,033 33,137 24.9

Japan ..................... 14,586 11,599 5,063 9,917 11,027 -24.4

China ...................... 2,630 4,338 4,636 9,782 7,954 202.4

Netherlands ................. 6,708 2,854 3,126 2,841 3,277 -51.1

Myanmar ................... 1,374 1,370 4,103 1,481 2,250 63.8

Ireland ..................... 5,621 1,826 2,555 3,518 1,884 -66.5

New Zealand ................ 2,379 1,050 1,721 3,576 1,862 -21.7

Italy ....................... 4,171 6,349 2,782 1,492 1,688 -59.5

Taiwan .................... 1,103 1,058 1,074 1,475 1,608 45.8

All other .................... 17,687 19,207 19,973 13,069 10,673 -39.7

 Total .................... 160,610 186,981 230,314 228,630 213,947 33.2

————— Unit value (dollars per metric ton)

—————

Canada .................... 282 319 338 377 415 47.5

Germany ................... 9,373 11,044 9,968 10,809 8,381 -10.6

Japan ..................... 12,035 10,790 9,239 8,886 8,031 -33.3

China ...................... 2,212 2,418 2,222 2,190 1,772 -19.9

Netherlands ................. 2,031 5,607 1,820 1,380 1,773 -12.7

Myanmar ................... 483 713 781 637 738 52.7

Ireland ..................... 1,339 5,706 2,967 1,294 772 -42.3

New Zealand ................ 986 779 1,209 866 898 -9.0

Italy 2,116 5,624 5,620 10,361 6,418 203.3

Taiwan .................... 1,889 3,712 3,025 3,086 3,248 72.0

All other .................... 1,716 2,731 2,114 773 1,475 -14.0

 Total .................... 523 576 508 536 593 13.4

1

 Contains products classified under HS 2309.90.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-17

Table B-22

Pet food1: U.S. imports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

———————— Quantity (metric tons) ———————

Canada .................... 89,615 114,379 129,966 149,570 144,858 61.6

Thailand ................... 15,045 14,718 14,959 15,842 17,399 15.6

Denmark ................... 143 142 483 662 475 232.2

Italy ....................... 0 7 26 172 723 (2)

France ..................... (

3

) 8 0 0 742 (2)

Germany ................... 17 58 62 108 234 1,276.5

Mexico ..................... 1 85 4,283 11,729 1,125 112,400.0

Ecuador .................... 575 732 0 612 1,185 106.1

Korea ..................... 0 0 34 140 67 (

2

)

Brazil ...................... 9 35 37 97 53 488.9

All other .................... 751 2,795 2,038 1,601 1,393 85.5

Total .................... 106,157 132,959 151,888 180,533 168,253 58.5

——————— Value (thousand dollars) ———————

Canada .................... 63,102 79,069 95,823 110,530 111,394 76.5

Thailand ................... 19,463 18,675 21,332 21,572 25,991 33.5

Denmark ................... 289 314 2,861 4,278 2,924 911.8

Italy ....................... (

2

) 8 61 586 2,525 (

2

)

France ..................... 2 25 (

2

) (

2

) 1,491 74,450.0

Germany ................... 31 215 469 644 1,223 3,845.2

Mexico ..................... 3 57 2,578 2,641 808 26,833.3

Ecuador .................... 187 265 (

2

) 669 385 105.9

Korea ..................... (

2

) (

2

) 162 735 376 (

2

)

Brazil ...................... 9 89 268 303 319 3,444.4

All other .................... 953 2,088 3,248 2,287 1,938 103.4

Total .................... 84,037 100,803 126,798 144,243 149,373 77.7

————— Unit value (dollars per metric ton) —————

Canada .................... 704 691 737 739 769 9.2

Thailand ................... 1,294 1,269 1,426 1,362 1,494 15.5

Denmark ................... 2,021 2,211 5,923 6,462 6,156 204.6

Italy ....................... (

2

) 1,143 2,346 3,407 3,492 (

2

)

France ..................... (

2

) 3,125 (

2

) (

2

) 2,009 (

2

)

Germany ................... 1,824 3,707 7,565 5,963 5,226 186.6

Mexico ..................... 3,000 671 602 225 718 -76.1

Ecuador .................... 325 362 (

2

) 1,093 325 0

Korea ..................... (

2

) (

2

) 4,765 5,250 5,612 (

2

)

Brazil ...................... 1,000 2,543 7,243 3,124 6,019 502

All other .................... 1,269 747 1,594 1,428 1,391 10

Total .................... 792 758 835 799 888 12

1

 Contains products classified under HS 2309.10.

2

 Not applicable.

3

 Less than 500 kg.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-18

Table B-23

Wheat gluten1: U.S. imports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

 94/98

—————— Quantity (thousand kilograms) —————

Australia .................. 23,673 25,545 31,266 22,131 29,645 25.2

Germany .................. 9,659 12,871 18,181 14,332 19,375 100.6

Netherlands ................ 7,758 8,624 10,319 9,442 15,838 104.2

Canada ................... 28,821 6,928 7,690 6,851 8,624 -70.1

Belgium ................... 996 588 3,054 3,194 7,184 621.3

France .................... 2,358 2,401 2,721 3,585 4,564 93.6

United Kingdom ............. 668 237 788 587 2,045 206.1

Poland .................... 0 0 0 0 1,159 (

2

)

China ..................... 2,380 1,149 1,502 1,205 1,261 -47.0

Finland ................... 500 1,395 2,264 1,787 1,335 167.0

All other ................... 5,234 3,837 4,472 3,765 3,244 -38.0

Total ................... 82,047 63,575 82,258 66,880 94,273 14.9

——————— Value (thousand dollars) ———————

Australia .................. 34,300 26,433 35,850 22,302 31,422 -8.4

Germany .................. 12,543 13,319 17,266 12,293 17,944 43.1

Netherlands ................ 12,695 10,141 11,336 9,418 16,204 27.6

Canada ................... 14,891 9,585 10,782 8,683 10,811 -27.4

Belgium ................... 1,901 731 3,152 2,962 7,403 289.4

France .................... 3,021 2,513 2,624 3,021 4,690 55.2

United Kingdom ............. 967 279 832 558 2,181 125.5

Poland .................... (

2

) (

2

) (

2

) (

2

) 1,478 (

2

)

China ..................... 2,986 1,285 1,605 1,290 1,362 -54.4

Finland ................... 810 1,535 2,431 1,654 1,224 51.1

All other ................... 7,522 4,240 4,596 3,826 3,196 -57.5

Total ................... 91,634 70,059 90,472 66,008 97,914 6.9

————— Unit value (dollars per kilogram) ——————

Australia .................. 1.45 1.03 1.15 1.01 1.06 -26.8

Germany .................. 1.30 1.03 0.95 0.86 0.93 -28.7

Netherlands ................ 1.64 1.18 1.10 1.00 1.02 -37.5

Canada ................... 0.52 1.38 1.40 1.27 1.25 142.6

Belgium ................... 1.91 1.24 1.03 0.93 1.03 -46.0

France .................... 1.28 1.05 0.96 0.84 1.03 -19.8

United Kingdom ............. 1.45 1.18 1.06 0.95 1.07 -26.3

Poland .................... (

2

) (

2

) (

2

) (

2

) 1.28 (

2

)

China ..................... 1.25 1.12 1.07 1.07 1.08 -13.9

Finland ................... 1.62 1.10 1.07 0.93 0.92 -43.4

All other ................... 1.44 1.11 1.03 1.02 0.99 -31.4

Total ................... 1.12 1.10 1.10 0.99 1.04 -7.0

1

 Contains products classified under HS 1109.

2

 Not applicable.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-19

Table B-24

Flours and meals of meat and fish1: U.S. imports of domestic merchandise, by principal

markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

 94/98

——————— Quantity (metric tons) ————————

Canada ................... 28,905 33,792 37,427 38,455 27,918 -3.4

Iceland ................... 5,428 1,497 5,100 7,931 15,930 193.5

Australia .................. 34 6,467 4,808 19,719 18,364 53,911.8

New Zealand ............... 20 2,170 5,020 11,099 14,647 73,135.0

Panama ................... 12,310 16,260 5,060 9,093 13,164 6.9

Mexico .................... 124 8,703 17,406 15,264 7,884 6,258.1

Chile ..................... 27,502 11,288 13,859 2,847 6,505 -76.3

Peru ..................... 192,223 10,779 7,658 21,710 4,731 -97.5

Japan .................... 0 18 33 48 609 (

2

)

Denmark .................. 714 4,221 6,089 82 483 -32.4

All other ................... 144 61 356 231 755 424.3

Total ................... 267,404 95,256 102,816 126,479 110,990 -58.5

——————— Value (thousand dollars) ———————

Canada ................... 12,919 12,438 14,060 15,692 10,053 -22.2

Iceland ................... 2,192 737 3,302 5,229 9,632 339.4

Australia .................. 12 3,519 2,193 9,455 7,767 64,625.0

New Zealand ............... 9 1,027 2,733 6,373 6,718 74,544.4

Panama ................... 2,745 3,449 1,965 3,923 5,079 85.0

Mexico .................... 46 3,756 9,000 7,963 4,661 10,032.6

Chile ..................... 7,851 3,764 7,076 1,602 4,325 -44.9

Peru ..................... 56,220 3,845 3,633 11,017 2,628 -95.3

Japan .................... (

2

) 21 84 671 700 (

2

)

Denmark .................. 369 2,488 4,388 59 369 0.0

All other ................... 159 83 335 514 712 347.8

Total ................... 82,520 35,126 48,769 62,498 52,644 -36.2

————— Unit value (dollars per metric ton) —————

Canada ................... 447 368 376 408 360 -19.4

Iceland ................... 404 492 647 659 605 49.7

Australia .................. 353 544 456 479 423 19.8

New Zealand ............... 450 473 544 574 459 1.9

Panama ................... 223 212 388 431 386 73.0

Mexico .................... 371 432 517 522 591 59.4

Chile ..................... 285 333 511 563 665 132.9

Peru ..................... 292 357 474 507 555 89.9

Japan .................... (

2

) 1,167 2,545 13,979 1,149 (

2

)

Denmark .................. 517 589 721 720 764 47.8

All other ................... 1,104 1,361 941 2,225 943 -14.6

Total .................. 309 369 474 494 474 53.7

1

 Contains products classified under HS 2301.

2

 Not applicable.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-20

Table B-25

Animal feed: U.S. imports for consumption, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

 94/98

—————— Quantity (million kilograms)

1

 ——————

Canada .................... 1,847.3 1,832.1 2,179.4 2,170.9 2,238.9 21.2

Germany ................... 50.9 16.5 22.6 17.7 23.6 -53.6

Australia ................... 23.9 32.2 36.9 42.4 48.4 102.5

Thailand ................... 15.5 15.9 16.6 17.2 18.2 17.4

Netherlands ................. 11.1 9.2 12.2 12.1 18.7 68.5

Japan ..................... 1.3 1.1 1.1 2.3 5.6 330.8

China ...................... 3.6 3.0 4.0 12.3 6.5 80.6

Iceland .................... 5.4 1.5 5.1 7.9 15.9 194.4

France ..................... 5.8 4.9 5.4 6.2 8.2 41.4

New Zealand ................ 2.9 4.9 6.4 15.2 16.8 479.3

All other .................... 440.7 232.3 314.8 300.4 229.8 -47.9

Total .................... 2,408.4 2,153.6 2,604.5 2,604.6 2,630.6 9.2

European Union .............. 127.1 66.1 88.8 80.6 83.3 -34.4

Asia ....................... 31.8 28.4 37.6 48.0 48.6 52.9

Latin America ............... 270.1 93.1 127.1 125.2 55.9 -79.3

——————— Value (million dollars) ————————

Canada .................... 340.4 370.5 517.7 535.8 499.3 46.7

Germany ................... 43.5 53.3 59.0 48.1 52.3 20.2

Australia ................... 34.6 30.4 39.6 32.6 39.7 14.7

Thailand ................... 19.7 19.3 22.5 22.6 26.5 34.5

Netherlands ................. 19.4 13.1 14.9 13.3 21.5 10.8

Japan ..................... 14.7 11.8 5.5 11.3 12.7 -13.6

China ...................... 5.7 5.7 6.5 13.5 9.8 71.9

Iceland .................... 2.2 0.8 3.3 5.2 9.6 336.4

France ..................... 5.7 5.1 4.7 5.5 9.3 63.2

New Zealand ................ 2.8 2.9 4.5 10.0 8.7 210.7

All other .................... 124.0 67.2 101.3 85.1 69.9 -43.6

Total .................... 612.7 580.1 779.5 783.0 759.3 23.9

European Union .............. 92.5 91.1 105.7 88.9 109.3 18.1

Asia ....................... 47.2 43.7 47.9 58.4 57.7 22.3

Latin America ............... 72.4 19.6 36.2 37.2 20.7 -71.5

1

 For each country, quantities measured in tons were converted to kilograms. 

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-21

Table B-26

Animal feeds: Harmonized Tariff Schedule subheadings; description; U.S. column 1 rate of duty as of Jan. 1, 1999; bound concession

rate of duty; U.S. exports, 1998; and U.S. imports, 1998

HTS

subheading Description

Column 1 rate of duty, as of Jan. 1,

1999 Bound duty,

Uruguay

Round

U.S.

exports,

1998

U.S.

imports,

1998

General Special1

Million

dollars

Million

dollars

1109.00.10 Wheat gluten, whether or not dried, to be used

as animal feed .............................

2.2% Free (A,CA,E,IL,J,MX) 1.8% 4.7 14.3

1109.00.90 Wheat gluten, whether or not dried, other ............ 7% Free (A,CA,E,IL,J,MX) 6.8% 4.7 83.7

1208.10.00 Flours and meals of soybeans .................... 2.1% Free (A+,CA,E,IL,J,MX) 1.9% 99.1 2.5

1208.90.00 Flours and meals of oil seeds or oleaginous fruits 

other than those of mustard or soybeans .......... 1.7% Free (A+,CA,E,IL,J,MX) 1.4% 2.6 (

2

)

1213.00.00 Cereal straw and husks, unprepared, whether or not 

chopped, ground, pressed or in the form of pellets ... Free Free 7.7 0.9

1214.10.00 Alfalfa (lucerne) meal and pellets .................. 1.7% Free (A+,CA,E,IL,J,MX) 1.4% 42.7 6.2

1214.90.00 Rutabagas, mangolds, fodder roots, hay, clover,

sainfoin, kale, lupines, vetches & forage products,

 nesoi ..................................... Free Free 264.2 11.8

2301.10.00 Flours, meals, and pellets, of meat or meat offal unfit for

human consumption; greaves (cracklings)

Free Free 87.8 19.1

2301.20.00 Flours, meals, and pellets, of fish or of crustaceans,

molluscs or other aquatic invertebrates, unfit for

human consumption .......................... Free Free 67.4 33.6

2302.10.00 Bran, sharps (middlings) and other residues, derived

from the sifting, milling or other working of corn

(maize) ....................................

Free Free 11.1 1.5

2302.20.00 Bran, sharps (middlings) and other residues, derived

from the sifting, milling or other working of rice ......

Free Free 8.9 0.6

2302.30.00 Bran, sharps (middlings) and other residues, derived

from the sifting, milling or other working of wheat ....

Free Free 11.1 13.5

See footnotes at end of table.
B-22

Table B-26—Continued

Animal feeds: Harmonized Tariff Schedule subheadings; description; U.S. column 1 rate of duty as of Jan. 1, 1999; bound concession

rate of duty; U.S. exports, 1998; and U.S. imports, 1998

HTS

subheading Description

Column 1 rate of duty, as of Jan. 1,

1999 Bound duty,

Uruguay

Round

U.S.

exports,

1998

U.S.

imports,

1998

General Special1

Million

dollars

Million

dollars

2302.40.00 Bran, sharps (middlings) and other residues, derived

from the sifting, milling or other working of cereals,

excluding corn, rice and wheat .................. Free Free 2.9 5.3

2302.50.00 Bran, sharps (middlings) and other residues, derived

from the sifting, milling or other working of

leguminous plants ........................... 1.7% Free (A+,CA,E,IL,J,MX) 1.4% 30.9 2.5

2303.10.00 Residues of starch manufacture and similar residues ... 1.7% Free (A+,CA,E,IL,J,MX) 1.4% 655.9 12.5

2303.20.00 Beet-pulp, bagasse and other waste of sugar

manufacture ............................... Free Free 68.9 0.9

2303.30.00 Brewing or distilling dregs and waste ............... Free Free 72.4 12.1

2304.00.00 Oilcake and other solid residues, resulting from the

extraction of soybean oil ...................... 0.49¢/kg Free (A+,CA,E,IL,J,MX) 0.45¢/kg 1604.2 2.5

2305.00.00 Oilcake and other solid residues, resulting from the

extraction of peanut (ground-nut) oil .............. 0.38¢/kg Free (A,CA,E,IL,J,MX) 0.32¢/kg 1.9 0

2306.10.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of cotton seeds ... 0.58¢/kg Free (A+,CA,E,IL,J,MX) 0.56¢/kg 13.9 (

2

)

2306.20.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of linseed ....... 0.14¢/kg Free (A,CA,E,IL,J,MX) 0.12¢/kg 3.3 (

2

)

2306.30.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of sunflower

seeds ..................................... 0.49¢/kg Free (A,CA,E,IL,J,MX) 0.45¢/kg 2.2 (

2

)

2306.40.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of rape or colza

seeds ..................................... 0.18¢/kg Free (A,CA,E,IL,J,MX) 0.17¢/kg 3.3 162.9

See footnotes at end of table.
Table B-26—Continued

Animal feeds: Harmonized Tariff Schedule subheadings; description; U.S. column 1 rate of duty as of Jan. 1, 1999; bound concession

rate of duty; U.S. exports, 1998; and U.S. imports, 1998

HTS

subheading Description

Column 1 rate of duty, as of Jan. 1,

1999 Bound duty,

Uruguay

Round

U.S.

exports,

1998

U.S.

imports,

1998

General Special1

Million

dollars

Million

dollars

B-23

2306.50.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of coconut or

copra ..................................... 0.49¢/kg Free (A,CA,E,IL,J,MX) 0.45¢/kg 0 (

2

)

2306.60.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of palm nuts or

kernels .................................... 0.32¢/kg Free (A,CA,E,IL,J,MX) 0.32¢/kg 0 0

2306.70.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, of corn (maize)

germ ..................................... 0.38¢/kg Free (A,CA,E,IL,J,MX) 0.32¢/kg 1.6 0

2306.90.00 Oilcake and other solid residues, resulting from the

extraction of vegetable fats or oils, nesoi .......... 0.38¢/kg Free (A,CA,E,IL,J,MX) 0.32¢/kg 4.0 0.6

2307.00.00 Wine lees; argol ............................... Free Free 1.4 (

2

)

2308.10.00 Acorns and horse-chestnuts ...................... 1.7% Free (A+,CA,E,IL,J,MX) 1.4% 3.0 (

2

)

2308.90.30 Screenings, scalpings, chaff or scourings, ground or

not ground of flaxseed (linseed), of a kind used in

animal feeding .............................. Free Free 12.4 (

2

)

2308.90.50 Dehydrated marigolds .......................... 2.1% Free (A,CA,E,IL,J,MX) 1.9% 3.1

2308.90.80 Vegetable materials and vegetable waste, vegetable

residues and by products, nesi, of a kind used in

animal feeding .............................. 1.7% Free (A+,CA,E,IL,J,MX) 1.4% 43.5 7.8

2309.10.00 Dog or cat food, put up for retail sale ............... Free Free 681.2 149.4

2309.90.10 Mixed feed or mixed feed ingredients used in animal

feeding .................................... Free Free 290.1 183.2

See footnotes at end of table. 
Table B-26—Continued

Animal feeds: Harmonized Tariff Schedule subheadings; description; U.S. column 1 rate of duty as of Jan. 1, 1999; bound concession

rate of duty; U.S. exports, 1998; and U.S. imports, 1998

HTS

subheading Description

Column 1 rate of duty, as of Jan. 1,

1999 Bound duty,

Uruguay

Round

U.S.

exports,

1998

U.S.

imports,

1998

General Special1

Million

dollars

Million

dollars

B-24

2309.90.22 Animal feeds w/milk or milk derivatives, o/10% by

weight of milk solids, subject to gen. note 15 of the

HTS ......................................

7.5% Free (A+,CA,E,IL,J,MX) 30.8 (

2

)

2309.90.24 Animal feeds w/milk or milk derivatives, o/10% by

weight of milk solids, subject to add note 2 to

Ch. 23, not GN15 ............................

7.5% Free (A+,CA,E,IL,J,MX) 7.5% 30.8 1.2

2309.90.28 Animal feeds w/milk or milk derivatives, o/10% by

weight of milk solids, not subject to gen. note 15 or

add note 2 to Ch. 23 .........................

82.8¢/kg +

6.6%

(

3

) 80.4¢/kg +

6.4%

30.8 0

2309.90.42 Animal feeds w/milk or milk derivatives, n/o10% by

weight of milk solids, subject to gen. note 15 of the

HTS ......................................

7.5% Free (A+,CA,E,IL,J,MX) 30.8 0 

2309.90.44 Animal feeds w/milk or milk derivatives, n/o10% by

weight of milk solids, subject to add note 2 to Ch. 23,

not GN15 ..................................

7.5% Free (A+,CA,E,IL,J,MX) 7.5% 30.7 (

2

)

2309.90.48 Animal feeds w/milk or milk derivatives, n/o 10% by

weight of milk solids, not subject to gen. note 15 or

add note 2 to Ch. 23 .........................

82.8¢/kg +

6.6%

(

3

) 80.4¢/kg +

6.4%

30.7 (

2

)

2309.90.60 Animal feeds, containing egg, other than mixed feeds

or mixed feed ingredients, not containing milk or

milk derivatives .............................

2.1% Free (A+,CA,E,IL,J,MX) 1.9% 4.0 (

2

)

2309.90.70 Other preparations nesoi with a basis of vitamin B12,

for supplementing animals in animal feeding, not

containing milk or egg products .................

1.7% Free (A,CA,E,IL,J,MX) 6.0 (

2

)

2309.90.95 Other preparations nesoi of a kind used in animal

feeding, not containing milk or egg products ........

1.7% Free (A+,CA,E,IL,J,MX) 10.0 28.9

See footnotes at end of table.
Table B-26—Continued

Animal feeds: Harmonized Tariff Schedule subheadings; description; U.S. column 1 rate of duty as of Jan. 1, 1999; bound concession

rate of duty; U.S. exports, 1998; and U.S. imports, 1998

HTS

subheading Description

Column 1 rate of duty, as of Jan. 1,

1999 Bound duty,

Uruguay

Round

U.S.

exports,

1998

U.S.

imports,

1998

General Special1

Million

dollars

Million

dollars

B-25

 

1

 Programs under which special tariff treatment may be provided’ and the corresponding symbols for such programs as they are indicated in the “Special”

subcolumn’ are as follows: Generalized System of Preferences (A); United States-Canada Free-Trade Agreement, goods of Canada (CA); Mexico (MX);

Caribbean Basic Economic recovery Act (E); United States-Israel Free-Trade Area (IL); and the Andean Trade Preference Act (J). See appendix A for more

details on these programs.

 

2

 Less than $500,000.

 3 Dairy-containing animal feeds from Mexico are subject to quantitative restrictions. In 1999, the quantitative restriction for certain dairy-containing products

from Mexico, including animal feeds, was set at 489,000 kg. Dairy-containing animal feeds that fall within this restriction enter the United States duty-free.

Otherwise, the tariff assessed is 37.8¢/kg if the product is valued less than $1.21/kg or 31.2 percent otherwise.

Source: Compiled from official statistics of the U.S. Department of Commerce and USITC, Harmonized Tariff Schedule of the United States (1999), USITC

publication 3138, Nov. 1998.
B-26

Table B-27

Pet food1: U.S. exports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (thousand metric tons) —————

Canada .................... 183 176 198 211 222 21.3

Japan ..................... 64 85 82 90 121 89.1

Mexico ..................... 15 16 29 43 60 300.0

Germany ................... 10 11 19 19 16 60.0

Italy ....................... 7 9 11 13 15 114.3

Spain ...................... 3 4 6 9 12 300.0

United Kingdom .............. 12 12 14 13 18 50.0

Taiwan .................... 11 11 12 14 21 90.9

Switzerland ................. 6 1 2 4 6 0.0

Netherlands ................. 2 2 3 6 6 200.0

All other .................... 49 68 83 113 118 140.8

Total .................... 360 395 459 536 615 69.9

———————— Value (million dollars) ———————

Canada .................... 180 179 199 198 208 15.6

Japan ..................... 65 88 97 104 128 96.9

Mexico ..................... 12 10 21 37 53 341.7

Germany ................... 13 16 28 36 30 130.8

Italy ....................... 13 16 24 27 27 107.7

Spain ...................... 6 8 10 15 22 266.7

United Kingdom .............. 17 18 18 16 21 23.5

Taiwan .................... 13 12 12 12 14 7.7

Switzerland ................. 6 3 5 9 12 100.0

Netherlands ................. 4 5 7 11 11 175.0

All other .................... 58 77 113 156 155 167.2

Total .................... 387 432 534 621 681 76.0

———— Unit value (dollars per metric ton) —————

Canada .................... 984 1,017 1,005 938 937 -4.7

Japan ..................... 1,016 1,035 1,183 1,156 1,058 4.2

Mexico ..................... 800 625 724 860 883 10.4

Germany ................... 1,300 1,455 1,474 1,895 1,875 44.2

Italy ....................... 1,857 1,778 2,182 2,077 1,800 -3.1

Spain ...................... 2,000 2,000 1,667 1,667 1,833 -8.3

United Kingdom .............. 1,417 1,500 1,286 1,231 1,167 -17.6

Taiwan .................... 1,182 1,091 1,000 857 667 -43.6

Switzerland ................. 1,000 3,000 2,500 2,250 2,000 100.0

Netherlands ................. 2,000 2,500 2,333 1,833 1,833 -8.3

All other .................... 1,184 1,132 1,361 1,381 1,314 11.0

Total .................... 1,075 1,094 1,163 1,159 1,107 3.6

1

 Contains products classified under HS 2309.10. 

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-27

Table B-28

Oilseed meals1: U.S. exports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (thousand metric tons)

—————

Canada .................... 715 808 696 663 790 10.5

China ...................... 0 0 418 293 780 (

2

)

Philippines .................. 258 594 423 483 759 194.2

Venezuela .................. 259 180 273 333 439 69.5

Saudi Arabia ................ 214 269 357 450 334 56.1

Korea ..................... 9 17 18 25 307 3,311.1

Spain ...................... 212 151 20 308 277 30.7

Japan ..................... 78 245 223 287 266 241.0

Algeria ..................... 234 217 203 251 263 12.4

Colombia ................... 215 194 257 250 274 27.4

All other .................... 2,621 2,797 2,621 3,414 3,344 27.6

Total .................... 4,815 5,473 5,511 6,757 7,834 62.7

——————— Value (million dollars) ————————

Canada .................... 158 160 187 192 168 6.3

China ...................... (

2

) (

2

) 117 84 160 (

2

)

Philippines .................. 54 121 120 144 145 168.5

Venezuela .................. 55 37 78 103 92 67.3

Saudi Arabia ................ 45 54 100 131 71 57.8

Korea ..................... 2 3 2 3 63 3,050.0

Spain ...................... 28 20 6 81 62 121.4

Japan ..................... 18 49 62 87 60 233.3

Algeria ..................... 50 43 57 73 54 8.0

Colombia ................... 46 39 70 76 53 15.2

All other .................... 524 525 675 936 707 34.9

Total .................... 978 1,052 1,475 1,910 1,634 67.1

————— Unit value (dollars per metric ton) —————

Canada .................... 221 198 269 290 213 -3.8

China ...................... (

2

) (

2

) 280 287 205 (

2

)

Philippines .................. 209 204 284 298 191 -8.7

Venezuela .................. 212 206 286 309 210 -1.3

Saudi Arabia ................ 210 201 280 291 213 1.1

Korea ..................... 172 153 133 120 205 19.3

Spain ...................... 132 132 275 263 224 69.5

Japan ..................... 231 200 278 303 226 -2.3

Algeria ..................... 214 198 281 291 205 -3.9

Colombia ................... 214 201 272 304 193 -9.6

All other .................... 200 188 258 274 211 5.8

Total .................... 203 192 268 283 209 2.7

1

 Contains products classified under HS 2304, 2305, and 2306.

2

 Not applicable.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-28

Table B-29

Meat and fish meals1: U.S. exports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (thousand metric tons)

—————

Mexico .................... 68 66 79 67 102 50.0

China ..................... 5 12 18 65 57 1040.0

Canada ................... 35 38 40 59 64 82.9

Taiwan ................... 54 47 48 42 48 -11.1

Japan .................... 27 36 19 21 24 -11.1

Philippines ................. 5 12 12 9 18 260.0

Indonesia .................. 60 69 103 76 23 -61.7

Thailand .................. 14 24 40 24 19 35.7

Germany .................. (

2

) (

2

) 3 (

2

) 6 (

3

)

Italy ...................... 1 1 5 0 5 400.0

All other ................... 21 41 23 26 42 100.0

Total ................... 290 346 391 389 408 40.7

——————— Value (thousand dollars) ———————

Mexico .................... 18,812 15,996 24,770 24,887 29,626 57.5

China ..................... 1,508 6,248 10,268 20,840 22,075 1363.9

Canada ................... 11,320 12,516 14,853 22,924 21,252 87.7

Taiwan ................... 22,271 18,411 22,853 20,247 20,566 -7.7

Japan .................... 11,306 11,768 9,516 10,828 11,294 -0.1

Philippines ................. 1,477 3,992 5,582 4,431 8,966 507.0

Indonesia .................. 17,786 18,301 33,994 29,805 7,597 -57.3

Thailand .................. 5,368 7,979 15,023 10,558 6,248 16.4

Germany .................. 136 44 1,419 593 3,232 2276.5

Italy ...................... 79 79 2,962 289 3,220 3975.9

All other ................... 6,673 15,931 13,022 13,655 21,172 217.3

Total ................... 96,734 111,265 154,261 159,057 155,247 60.5

————— Unit value (dollars per metric ton)

—————

Mexico .................... 277 242 314 371 290 5.0

China ..................... 302 521 570 321 387 28.4

Canada ................... 323 329 371 389 332 2.7

Taiwan ................... 412 392 476 482 428 3.9

Japan .................... 419 327 501 516 471 12.4

Philippines ................. 295 333 465 492 498 68.6

Indonesia .................. 296 265 330 392 330 11.4

Thailand .................. 383 332 376 440 329 -14.2

Germany .................. (

3

) (

3

) 473 (

3

) 539 (

3

)

Italy ...................... 79 79 592 (

3

) 644 715.2

All other ................... 318 389 566 525 504 58.6

Total ................... 334 322 395 409 381 14.1

1

 Contains products classified under HS 2301.

2

 Less than 500 tons.

3

 Not applicable.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-29

Table B-30

Alfalfa and other straw1: U.S. exports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (thousand metric tons) —————

Japan ...................... 1,626 1,781 1,745 1,755 1,828 12.4

Taiwan ..................... 76 92 101 89 74 -2.6

Korea ...................... 16 45 95 111 75 368.8

Canada ..................... 65 74 97 87 59 -9.2

United Arab Emirates ........... 2 4 4 3 8 300.0

Mexico ...................... 12 4 15 12 15 25.0

United Kingdom ............... 1 3 2 4 4 300.0

Hong Kong .................. 1 1 4 3 2 100.0

Belize ...................... 0 0 (

2

) 0 2 (

3

)

China ....................... (

2

) 0 0 (

2

) 3 (

3

)

All other ..................... 28 9 8 10 12 -57.1

Total ..................... 1,827 2,014 2,070 2,076 2,081 13.9

——————— Value (million dollars) ————————

Japan ...................... 252 272 273 292 284 12.8

Taiwan ..................... 10 12 13 13 10 0.0

Korea ...................... 2 6 14 16 9 350.0

Canada ..................... 6 7 10 9 5 -16.7

United Arab Emirates ........... (

4

) 1 1 1 1 (

3

)

Mexico ...................... 1 (

4

) 2 2 1 0.0

United Kingdom ............... (

4

) (

4

) (

4

) 1 1 (

3

)

Hong Kong .................. (

4

) (

4

) (

4

) 1 (

4

) (

3

)

Belize ...................... (

3

) (

3

) (

4

) (

3

) (

4

) (

3

)

China ....................... (

4

) (

3

) (

3

) (

4

) (

4

) (

3

)

All other ..................... 3 1 1 1 1 -66.7

Total ..................... 274 301 314 336 315 15.0

————— Unit value (dollars per metric ton) —————

Japan ...................... 155 153 156 166 155 0.2

Taiwan ..................... 132 130 129 146 135 2.7

Korea ...................... 125 133 147 144 120 -4.0

Canada ..................... 92 95 103 103 85 -8.2

United Arab Emirates ........... (

3

) 250 250 333 125 (

3

)

Mexico ...................... 83 (

3

) 133 167 67 -20.0

United Kingdom ............... (

3

) (

3

) (

3

) 250 250 (

3

)

Hong Kong .................. (

3

) (

3

) (

3

) 333 (

3

) (

3

)

Belize ...................... (

3

) (

3

) (

3

) (

3

) (

3

) (

3

)

China ....................... (

3

) (

3

) (

3

) (

3

) (

3

) (

3

)

All other ..................... 107 111 125 100 83 -22.2

Total ..................... 150 149 152 162 150 -0.1

1

 Contains products classified under HS 1213 and 1214.

2

 Less than 500 metric tons.

3

 Not applicable

4

 Less than $500,000.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-30

Table B-31

Compound animal feeds1: U.S. exports of domestic merchandise, by principal markets,

1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (thousand metric tons) —————

Canada ..................... 92 152 162 152 101 9.8

Mexico ...................... 169 141 198 246 173 2.4

Japan ...................... 185 169 140 158 96 -48.1

Belgium ..................... 1 4 15 30 49 4,800.0

Korea ...................... 9 24 22 25 33 266.7

Taiwan ..................... 32 37 49 36 28 -12.5

Brazil ....................... 25 19 30 24 33 32.0

Trinidad & Tobago ............. 49 41 19 61 60 22.4

United Kingdom ............... 33 28 23 20 11 -66.7

Thailand .................... 10 27 44 37 25 150.0

All other ..................... 341 450 408 472 440 29.0

Total ..................... 946 1,092 1,110 1,261 1,051 11.1

——————— Value (million dollars) ————————

Canada ..................... 111 123 104 114 126 13.5

Mexico ...................... 73 43 44 47 58 -20.5

Japan ...................... 106 125 76 79 48 -54.7

Belgium ..................... 1 6 17 19 17 1,700.0

Korea ...................... 9 14 15 14 13 44.4

Taiwan ..................... 21 25 21 17 13 -38.1

Brazil ....................... 8 10 14 17 12 50.0

Trinidad & Tobago ............. 10 9 6 15 12 20.0

United Kingdom ............... 31 27 27 18 11 -64.5

Thailand .................... 7 12 14 13 9 28.6

All other ..................... 163 204 201 209 175 7.4

Total ..................... 539 599 538 563 495 -8.2

—–——— Unit value (dollars per metric ton) ——–——

Canada ..................... 1,207 809 642 750 1,248 3.4

Mexico ...................... 432 305 222 191 335 -22.4

Japan ...................... 573 740 543 500 500 -12.7

Belgium ..................... 1,000 1,500 1,133 633 347 -65.3

Korea ...................... 1,000 583 682 560 394 -60.6

Taiwan ..................... 656 676 429 472 464 -29.3

Brazil ....................... 320 526 467 708 364 13.6

Trinidad & Tobago ............. 204 220 316 246 200 -2.0

United Kingdom ............... 939 964 1,174 900 1,000 6.5

Thailand .................... 700 444 318 351 360 -48.6

All other ..................... 478 453 493 443 398 -16.8

Total ..................... 570 549 485 446 471 -17.3

1

 Contains products classified under HS 2309.90.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-31

Table B-32

Corn gluten1: U.S. exports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (thousand metric tons)

—————

Netherlands ................. 2,170 2,302 1,981 1,866 1,860 -14.3

United Kingdom .............. 677 762 666 790 666 -1.6

Mexico ..................... 212 172 155 145 196 -7.5

Spain ...................... 696 839 557 749 624 -10.3

Portugal .................... 656 614 493 616 562 -14.3

Japan ..................... 102 143 178 166 143 40.2

Germany ................... 409 481 363 377 509 24.5

Ireland ..................... 836 714 468 366 458 -45.2

Taiwan .................... 54 62 77 73 59 9.3

Canada .................... 30 38 45 65 56 86.7

All other .................... 900 1,016 858 870 643 -28.6

Total .................... 6,744 7,143 5,841 6,082 5,778 -14.3

———————— Value (million dollars) ———————

Netherlands ................. 252 247 278 221 178 -29.4

United Kingdom .............. 77 82 91 82 56 -27.3

Mexico ..................... 53 44 47 47 51 -3.8

Spain ...................... 78 90 75 78 50 -35.9

Portugal .................... 73 66 66 63 46 -37.0

Japan ..................... 33 37 62 63 44 33.3

Germany ................... 46 50 48 39 43 -6.5

Ireland ..................... 97 79 64 39 38 -60.8

Taiwan .................... 19 19 25 22 18 -5.3

Canada .................... 9 11 15 22 17 88.9

All other .................... 147 159 180 174 113 -23.1

Total .................... 884 883 951 852 656 -25.8

——————— Unit value (dollars per ton) ——————

Netherlands ................. 116 107 140 118 96 -17.6

United Kingdom .............. 114 108 137 104 84 -26.1

Mexico ..................... 250 256 303 324 260 4.1

Spain ...................... 112 107 135 104 80 -28.5

Portugal .................... 111 107 134 102 82 -26.4

Japan ..................... 324 259 348 380 308 -4.9

Germany ................... 112 104 132 103 84 -24.9

Ireland ..................... 116 111 137 107 83 -28.5

Taiwan .................... 344 306 325 309 311 -9.6

Canada .................... 315 282 333 338 304 -3.5

All other .................... 163 156 210 200 176 8.0

Total .................... 131 124 163 140 114 -13.4

1

 Contains products classified under HS 2303.10.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-32

Table B-33

Animal feed: U.S. exports of domestic merchandise, by principal markets, 1994-98

Market 1994 1995 1996 1997 1998

Percentage

change

94/98

—————— Quantity (million kilograms)

1

 ——————

Japan ..................... 2,596 2,930 2,805 2,883 2,781 7.1

Canada .................... 1,194 1,380 1,353 1,442 1,473 23.4

Mexico ..................... 1,153 912 916 784 911 -21.0

Netherlands ................. 3,247 3,613 2,813 2,710 2,449 -24.6

China ...................... 10 58 477 388 937 9,178.2

Philippines .................. 285 664 471 542 923 223.7

Spain ...................... 1,095 1,337 829 1,301 1,164 6.3

United Kingdom .............. 986 1,089 899 1,090 954 -3.3

Ireland ..................... 1,169 1,279 914 826 1,105 -5.4

Venezuela .................. 263 193 293 355 480 82.7

All other .................... 5,780 6,820 6,685 7,843 7,619 31.8

Total .................... 17,776 20,275 18,454 20,164 20,795 17.0

Asia ....................... 3,559 4,701 5,062 5,137 5,974 67.9

European Union .............. 8,813 10,341 7,987 9,170 8,362 -5.1

Latin America ............... 2,415 2,280 2,511 2,644 3,169 31.2

——————— Value (million dollars) ————————

Japan ..................... 555 651 645 708 628 13.2

Canada .................... 487 506 552 600 578 18.7

Mexico ..................... 291 215 239 213 256 -12.0

Netherlands ................. 372 405 396 350 252 -32.1

China ...................... 4 15 141 116 205 5,025.0

Philippines .................. 64 142 140 167 191 198.4

Spain ...................... 138 161 126 206 168 21.9

United Kingdom .............. 160 163 170 166 130 -18.9

Ireland ..................... 136 155 131 124 127 -7.0

Venezuela .................. 57 42 85 111 104 82.5

All other .................... 1,218 1,367 1,750 2,076 1,678 37.7

Total .................... 3,482 3,822 4,375 4,837 4,317 24.0

Asia ....................... 857 1,108 1,332 1,414 1,365 59.3

European Union .............. 1,150 1,320 1,320 1,450 1,111 -3.4

Latin America ............... 598 540 725 828 816 36.3

1

 For each country, quantities measured in tons were converted to kilograms.

Source: Compiled from official statistics of the U.S. Department of Commerce. Figures may not add to totals

shown due to rounding.
B-33

Table B-34

Applied animal feed tariffs for major trading partners by country and HTS subheading, 1998

HTS

subheading Description

Applied tariff levels, 1998 (median tariff)

Japan Canada EU-15 Mexico China

1109.00 Wheat gluten .................................... 22.5% Free 608 Ecu/ton 7.5% 30%

1208.10 Flours and meals of soybeans ....................... 5.1% Free 5.3% 7.5% 40%

1208.90 Other flours and meals of oil seeds or oleaginous fruits 

other than those of mustard or soybeans ............. 5.1% Free Free 7.5% 20%

1213.00 Cereal straw and husks, unprepared, whether or not 

chopped, ground, pressed or in the form of pellets ........ Free Free Free Free 15%

1214.10 Alfalfa (lucerne) meal and pellets ..................... Free Free Free 7.5% 15%

1214.90 Rutabagas, mangolds, fodder roots, hay, clover, sainfoin, 

kale, lupines, vetches & forage products, nesoi ......... Free Free Free-6.9% (Free) 5%-7.5% 15%

2301.10 Flours, meals, and pellets, of meat or meat offal unfit for 

human consumption; greaves (cracklings) ............ Free Free Free 7.5% 2%-5% (5%)

2301.20 Flours, meals, and pellets, of fish or of crustaceans,

molluscs or other aquatic invertebrates, unfit for

human consumption ............................. Free Free Free 7.5% 3%-5% 

2302.10 Bran, sharps (middlings) and other residues, derived from 

the sifting, milling or other working of corn (maize) ......

Free Free 52 Ecu/ton-105.7

Ecu/ton

5% 5%

2302.20 Bran, sharps (middlings) and other residues, derived from 

the sifting, milling or other working of rice .............

Free Free 52 Ecu/ton-105.7

Ecu/ton

5% 5%

2302.30 Bran, sharps (middlings) and other residues, derived from 

the sifting, milling or other working of wheat ...........

Free Free 30 Ecu/ton-105.7

Ecu/ton1

5% 5%

2302.40 Bran, sharps (middlings) and other residues, derived from

the the sifting, milling or other working of

cereals, excluding

corn, rice and wheat .............................

Free Free 30 Ecu/ton-105.7

Ecu/ton1

Free 5%

2302.50 Bran, sharps (middlings) and other residues, derived from 

the sifting, milling or other working of leguminous plants Free Free 6.1% Free 5%

2303.10 Residues of starch manufacture and similar residues ...... Free Free Free-380 Ecu//ton 7.5% 5%

2303.20 Beet-pulp, bagasse and other waste of sugar

manufacture ................................... Free Free Free Free 5%

2303.30 Brewing or distilling dregs and waste .................. Free Free Free Free 5%

2304.00 Oilcake and other solid residues, resulting from the extraction of soybean oil .............................. Free Free Free 7.5% 5%

See footnotes at end of table.
B-34

Table B-34—Continued

Applied animal feed tariffs for major trading partners by country and HTS subheading, 1998

HTS

subheading Description

Applied tariff levels, 1998 (median tariff)

Japan Canada EU-15 Mexico China

2305.00 Oilcake and other solid residues, resulting from the extraction of peanut (ground-nut) oil ..................... Free Free Free 7.5% 5%

2306.10 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of cotton seeds .......... Free Free Free 7.5% 5%

2306.20 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of linseed .............. Free Free Free 7.5% 5%

2306.30 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of sunflower seeds ....... Free Free Free 7.5% 5%

2306.40 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of rape or colza seeds .... Free Free Free 7.5% 5%

2306.50 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of coconut or copra ...... Free Free Free 7.5% 5%

2306.60 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of palm nuts or kernels .... Free Free Free 7.5% 5%

2306.70 Oilcake and other solid residues, resulting from the extraction of vegetable fats or oils, of corn (maize) germ ..... Free Free Free 7.5% 5%

2306.90 Oilcake and other solid residues, resulting from the extracion of vegetable fats or oils, nesoi ..................Free Free Free-52 Ecu/ton

(Free)

7.5% 5%

2307.00 Wine lees; argol .................................. Free Free Free-1.76 Ecu/kg

total alcohol

content (Free)

Free 5%

2308.10 Acorns and horse-chestnuts, of a kind used in animal

feeding ...................................... Free Free Free Free 5%

2308.90 Screenings, scalpings, chaff or scourings, ground or not 

ground of flaxseed (linseed), of a kind used in animal 

feeding, dehydrated marigolds, other vegetable

materials, wastes, and residues used in animal feeding

Free Free Free-1.7% and 1.76

Ecu/kg total alcohol

content (Free)

Free 5%

2309.10 Dog or cat food, put up for retail sale .................. Free-¥44/kg 2

(Free)

Free Free-11.4% plus 0

Ecu/ton-1,126

Ecu/ton

5% 30%

See footnotes at end of table.
Table B-34—Continued

Applied animal feed tariffs for major trading partners by country and HTS subheading, 1998

HTS

subheading Description

Applied tariff levels, 1998 (median tariff)

Japan Canada EU-15 Mexico China

B-35

2309.90 Mixed feed or mixed feed ingredients used in animal

feeding ......................................

Free-3.7%3

(Free)

Free-“217.5%

but not less

than

C$1.74/kg”

(Free)

Free-13% plus 0

Ecu/ton-1,126

Ecu/ton4

Free-10%

(Free)

5%-8% 

1 Subject to a TRQ of 475,000 tons. In-quota rates range from 30.6 Ecu/ton to 62.25 Ecu/ton, while over-quota rates range from 52 Ecu/ton to 107 Ecu/ton.

2

 Also includes tariff of ¥63/kg + ¥6.33 for every 1 percent exceeding 10 percent by weight of lactose.

3

 Also includes tariff of ¥58.33/kg + ¥5.87 for every 1 percent exceeding 10 percent by weight of lactose.

4

 Certain products are subject to varying TRQs depending on the starch and/or milk content within each product.

Source: Tariffs for Japan are from the tariff schedule posted by the APEC Secretariat, found at Internet address http://www.apectariff.org. Tariffs for Canada

and Mexico are those specified in the NAFTA for 1998. Tariffs for the EU are from the Official Journal of the European Communities, No. L 312 (Nov. 14, 1997).

Tariffs for China are from UNCTAD, TRAINS, 1999 (CDROM).
B-36

Table B-35

World compound feed production, 1998

Country Quantity Percentage

Million metric tons 

United States ....................... 140.5 24.4

China ............................. 54.7 9.5

Brazil ............................. 29.0 5.0

France ............................ 24.1 4.1

Japan ............................ 23.0 4.0

Canada ........................... 19.3 3.4

Germany .......................... 18.9 3.3

Spain ............................. 15.3 2.7

Netherlands ........................ 14.5 2.5

Russia ............................ 13.9 2.4

Others ............................ 221.8 38.6

Total .......................... 575.0 100.0

Source: Derived from figure in Clayton Gill, “First, Asian feed slump . . . Now, global stagnation,” Feed

International, Jan. 1999, p. 4.

Table B-36

Feed production in the European Union, 1997

Country

Cattle

feed

Swine

feed

Poultry

feed

Milk

replacers

Pet

food

Other

feed Total

—————————— Quantity (thousand metric tons) ——————————

France .................. 4,175 6,932 9,428 505 622 1,156 22,818

Germany ................ 7,632 6,274 4,255 84 0 551 18,796

Netherlands .............. 3,600 6,700 3,600 750 700 350 15,700

Spain ................... 3,250 6,530 4,050 60 190 1,200 15,280

United Kingdom ........... 4,082 2,702 4,123 21 0 1,194 12,122

Italy .................... 3,580 2,350 4,400 150 120 1,000 11,600

Belgium ................. 934 3,577 1,122 57 0 140 5,830

Denmark ................ 1,408 3,456 654 5 0 164 5,687

Portugal ................. 1,010 1,320 1,340 0 5 235 3,910

Ireland .................. 1,452 705 487 5 11 287 2,947

Sweden ................. 1,160 700 490 10 100 50 2,510

Finland ................. 471 323 221 0 12 141 1,168

Austria .................. 195 227 380 4 100 82 988

European Union ........... 32,949 41,796 34,550 1,651 1,860 6,550 119,356

Source: Feedstuffs 1998 Reference Issue.

Table B-37

Compound feed production in Mexico, 1997

Feed type Quantity Percentage

Thousand tons

Poultry feed ........................... 7,150 47.7

Swine feed ............................ 3,350 22.3

Dairy feed ............................ 2,750 18.3

Beef cattle feed ........................ 1,300 8.7

Other feed ............................ 450 3.0

Total ............................. 15,000 100.0

Source: Feedstuffs 1998 Reference Issue.