Beef Demand Still Strong

August 7, 2001

Preliminary second quarter 2001 data shows consumer demand for U.S. beef remains strong, the beef industry announced from this year's Industry Summer Conference. Representatives of the Cattlemen's Beef Board (CBB) and National Cattlemen's Beef Association (NCBA) said checkoff-funded efforts are addressing the drivers that are keeping demand on the increase.

According to a peer-reviewed demand index, demand for beef increased 5% the second quarter of 2001 compared to the second quarter of 2000. Beef demand has increased 10 of the past 12 quarters, compared to the same quarters the previous year.

"Never in history has the U.S. beef industry seen such success in consistently increasing consumer demand for our product," said Dan Hammond, chairman of the CBB and a beef producer from American Falls, ID. "The beef industry is answering consumer requests for easy and more convenient ways to purchase, prepare and enjoy beef. We realize that convenience is a lifestyle, and we've responded by helping to develop new heat and serve products, new cuts of beef, and an improved meat case designed as a destination for convenience."

Beef demand, which is a measure accounting for both per capita consumption and consumer spending for beef, has trended upward since 1999. Stabilizing and increasing demand resulted after the industry put in place an aggressive 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 remains safe.

"The beef demand index is an accurate indicator of consumer buying trends related to beef," said Wayne Purcell, Virginia Tech Agricultural Economics Professor and creator of the index. "Many people think the increase in beef demand is a direct result of a relatively strong economy, but there are many other factors that play a part. The beef industry's checkoff-funded programs have contributed to beef demand success."

Industry experts anticipate demand will remain stable even though total beef supplies will decline slightly over the next few years. Consumer expenditures for beef during 2001 are projected to total about $55.3 billion -- an increase of $2.4 billion from last year -- despite the projection that total meat supplies in 2001 will be even with the 2000 record-setting production level of 81.8 billion pounds.

"With other companies and industries feeling the impact of tighter economic times, the beef industry continues its turnaround. The latest demand figures re-confirm that consumers see food, specifically beef, as a critical part of their livelihood and happiness," said Lynn Cornwell, president of the NCBA and a rancher from Glasgow, MT. "Because of the enjoyment, convenience and nutrient bundle it provides, consumers aren't willing to cut back on their beef intake."