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How can the beef industry recapture lost consumer demand?¹

Department of Agricultural Economics, Kansas State University, Manhattan 66506

^2. Correspondence: Waters Hall (phone: (785) 532-4488; fax (785) 532-6925; E-mail: Tschroed{at}agecon.ksu.edu).

Abstract

Twenty years of declining demand has plagued the beef industry. Better understanding of beef demand determinants is essential to designing strategies to reverse declining beef demand. This article is a review of economic and demographic factors causing beef demand to decline, and strategies the beef industry could use to regain lost consumer demand are identified. Five major demand determinants are identified, including 1) relative prices of competing meats, 2) consumer income, 3) health and nutrition concerns, 4) food safety, and 5) product attributes relative to changing consumer preferences. The last three factors have had enough negative influence on beef demand during the past 20 yr to more than offset positive demand impacts associated with the first two factors. To revitalize beef demand, the industry must improve vertical coordination and provide a healthy, safety-assured product that offers consumers a desirable eating experience that fits their lifestyles.

^1. Helpful review comments of M. Koohmaraie are acknowledged.

^3. Professor and USDA National Needs Fellow.