Beef Demand Strong as Summer Nears

May 25, 2001

Preliminary first quarter 2001 data shows consumer demand for U.S. beef remains strong, the National Cattlemen's Beef Association (NCBA) says. "Preliminary data from first quarter 2001 indicates beef demand may be up roughly 2% when compared to first quarter 2000," said Chuck Schroeder, CEO of the NCBA. "The positive demand trend reinforces consumers' love for beef and the industry's ability to deliver quality products that meet their needs."

Beef demand, which is a measure accounting for both per capita consumption and consumer spending for beef, has trended upward since 1999 when the industry put in place a business plan focused on delivering more convenient beef products, educating consumers about the bundle of key nutrients found in beef, and working to ensure U.S. beef remained safe. Since then, demand figures have increased 9 out of the past 11 quarters, compared to the same quarters the previous year.

"We expect American consumers will purchase 60 million pounds of beef for their Memorial Day celebrations, which is about 25% greater than average daily purchases for beef," said Chuck Lambert, chief economist for NCBA. "Hamburgers and steaks continue to be top choices for the grill, and their popularity will drive increased beef sales and consumption this Memorial Day and throughout the grilling season." Lambert expects to see similar gains for Fourth of July and Labor Day, which typically tie for the second most popular beef days of the year.

While a strong grilling season could certainly contribute to the industry's long-term goal of building consumer demand, Schroeder believes the real keys to growth lie in convenience, nutrition and safety.

"The best selling meat products during grilling season have one thing in common: convenience. We've built on the appeal of products like ground beef and steaks by helping introduce a host of new, convenient beef products that consumers can enjoy any day of the year," Schroeder explained.

A recent consumer attitudes study of more than 1,300 adults found Americans were more likely to say they feel better about beef's nutritional value today (35%) than they did a year ago (25%). Fifty-four percent of Americans agree beef is an important part of a balanced diet and healthy lifestyle, compared with 51% in 1999.