A study prepared for the Livestock Marketing Association (LMA) found the economic activity associated with the livestock market helps to support a wide variety of industries. The 2023 study, “Economic Contribution Study of Livestock Auction Markets,” conducted by Decision Innovation Solutions, found the total value-added impact to the community was $2 million.
The study found the market studied directly provides 12 jobs, $580,000 in labor income and $1.47 million in value-added money for the community. After adding indirect and induced effects, this contribution grows to 17 jobs, $888,050 in labor income and nearly $2 million in added value.
The study was based on an auction market in Missouri selling all classes of livestock. The market used in the analysis was convenient for sellers and close to small beef processing facilities making it easy for travel, stress and shrinkage on the cattle.
According to LMA, the study’s case auction market was selected as a representative example of LMA member-livestock auctions.
“Without the presence of the particular auction market, which is the subject of this study, many area producers would have to take their livestock elsewhere, causing them to incur higher transportation costs and leading to a loss of economic activity in and around this auction market to other neighboring communities,” the study said.
The study also found the on-site cafe contributed approximately $17,000 in labor income and one job to the local community.
The 2023 study updated a previous study by LMA in 2017, showing a value-added economic impact of $1 million. The 2017 LMA Economic Impact Report was also conducted by Decision Innovation Solutions, which analyzed the economic contribution of a livestock market in Iowa. — Charles Wallace, WLJ editor
