Feed Lot Magazine Online, Beef Demand Stabilizes After 20 Years

For the first time in 20 years, beef demand has stabilized, according to U.S. beef industry experts. Preliminary fourth quarter 1999 data shows continued growth in demand when compared to 1998. As a result, beef demand shows a 3.5 percent increase when compared to 1998. This new fourth-quarter 1999 estimate shows continued growth when compared to the same period in 1998.

The increase in demand correlates with tow major economic factors: increased consumer spending for beef and higher per capita consumption of beef, said Randy Blach, market analyst for Cattle-Fax. The beef demand index, which shows demand on the decline since 1980, is calculated by leading independent economics and industry experts using USDA per capita beef consumption data and USDA Choice retail beef prices adjusted for inflation. As consumers continue to enjoy more beef at mealtime, the foodservice sector is one of the important factors in the rise in beef demand.

"Beef remains a dominant force in foodservice, says Ronald N. Paul, president of Technomic, Inc, a Chicago-based marketing and management consulting firm. "We have seen growth in beef servings from steaks to roast beef sandwiches to the all-American burger."

In 1998, total food expenditures favored foodservice. Consumers spent 51 percent of their food dollar on meals away from home and 49 percent in the retail marketplace, according to Technomic, Inc. research. "More consumers turn to restaurants as a convenient meal solution. And beef offers both an option people like and can find."

Partnerships with casual dining operations helped promote new beef menu items using the "easy beef" theme. "The fastest growing segment in foodservice continues to be casual dining," says Paul. "Variations on basic favorites, such as burgers and steaks, give chefs more variety on the menu and provide their customers with a new option at the restaurant."