The principal over-all job of the livestock industry is to provide food for man. It has met the stepped-up demands of the war emergency in a remarkable manner despite shortages of labor, machinery, and of certain critical feed ingredients. These shortages are likely to become more acute. Disease problems also increase as the animal industry is pushed for maximum production. But the most serious problem of all is concerned with the general feed supply situation in relation to livestock numbers. In spite of exceptional production during the last few years, we are using up our supplies faster than we are replacing them. Some liquidation of livestock is inevitable. In fact it is now occurring in certain areas, namely in the Northeast and on the Pacific Coast, where price policies and transportation problems have already created a serious feed shortage. Of course this liquidation of livestock can be postponed by drawing heavily on our last reserves of human food, namely our wheat surplus.