424520 - Livestock Merchant Wholesalers
When it comes to the wholesale livestock market, NAICS code 424520 is the key identifier for businesses that specialize in the merchant wholesale distribution of livestock. Understanding this code is essential for entrepreneurs, government contractors, and suppliers engaging with the wholesale trade sector. This blog post breaks down everything you need to know about NAICS code 424520, its relevance, and how it impacts the livestock industry.
What is NAICS Code 424520?
NAICS code 424520 is designated for Livestock Merchant Wholesalers. These establishments primarily engage in the wholesale distribution of various types of livestock, including cattle, hogs, sheep, and other farm animals. Acting as intermediaries, these businesses facilitate the sale and transportation of animals from producers to buyers, ensuring the smooth operation of the livestock supply chain.
Sector Overview: Wholesale Trade
This NAICS code falls under the Wholesale Trade sector and specifically highlights the niche market of live animal wholesaling. Businesses under NAICS 424520 play a critical role in:
- Connecting livestock producers (farmers, ranchers) to markets and buyers.
- Managing auction markets for livestock.
- Operating merchant wholesale distribution networks.
- Handling the logistics involved in livestock sales and transport.
Typical Business Activities Covered by NAICS 424520
Businesses classified under this code typically specialize in:
- Auction markets for livestock (excluding horses and mules)
- Merchant wholesaling of:
- Cattle
- Hogs (Swine)
- Sheep
- Goats
- Livestock merchant wholesaling excluding feedlots and horses/mules
Common business types include:
- Cattle wholesalers
- Hog wholesalers
- Sheep and goat wholesalers
Size Standards for NAICS 424520 Eligibility
For federal contracting and eligibility purposes, the size standard for NAICS 424520 businesses is typically based on the number of employees. The benchmark size standard is:
- 125 employees
Businesses with 125 employees or fewer generally qualify as small businesses under this NAICS code, enabling them to pursue small business federal contracting opportunities and other benefits.
Examples of Businesses Under NAICS 424520
- Cattle Merchant Wholesalers: Companies wholesale cattle for meat production and breeding.
- Hog (Swine) Merchant Wholesalers: Businesses specializing in the trade and distribution of hogs.
- Sheep and Goat Merchant Wholesalers: Firms that wholesale sheep and goats for meat, dairy, and breeding purposes.
- Livestock Auction Markets: Specialized markets where various livestock are auctioned to buyers.
Detailed Breakdown of NAICS Code 424520
| Code Segment | Description |
|---|---|
| Auction markets, livestock (except horses, mules) | Services providing auction-based sales of livestock excluding horses and mules |
| Cattle merchant wholesalers | Businesses specializing in wholesale distribution of cattle |
| Goats merchant wholesalers | Traders and distributors focusing on goats |
| Hogs merchant wholesalers | Wholesalers dealing specifically with hogs/swine |
| Livestock (except horses, mules, and feedlots) merchant wholesalers | Wholesale distributors excluding horses, mules, and feedlot animals |
| Sheep merchant wholesalers | Specializing in wholesale sheep sales and distribution |
| Swine merchant wholesalers | Broader category of hog wholesalers |
Frequently Asked Questions (FAQ)
What animals are included under NAICS code 424520?
Livestock merchant wholesalers under this code deal primarily with cattle, hogs (swine), sheep, goats, and other farm animals—not including horses or mules.
Does this NAICS code include livestock auction markets?
Yes, auction markets for livestock (except horses and mules) are covered under NAICS 424520.
What is the size standard for businesses under NAICS 424520?
The standard small business size for this code is typically 125 employees or fewer.
Are feedlots included in this NAICS code?
No, feedlots are excluded from the scope of NAICS code 424520.
How can knowing this NAICS code help my business?
Understanding NAICS 424520 helps businesses identify their market classification, qualify for federal contracts, and target the right customers within the livestock wholesale trade sector.
Conclusion
NAICS code 424520 covers a vital segment of the wholesale trade sector by identifying businesses engaged in the merchant wholesaling of livestock. Whether you are a livestock producer, wholesaler, auction market operator, or a government contractor, familiarity with this code can improve your business strategy and open up new contracting opportunities. Keep this resource handy to navigate the livestock wholesale market effectively!
Keywords: NAICS 424520, Livestock Merchant Wholesalers, wholesale trade livestock, cattle wholesalers, hog wholesalers, sheep wholesalers, livestock auction markets, government contracting livestock, small business livestock wholesalers
