Released: February 27, 2002

Early Data Show Beef Demand Still Climbing

MANHATTAN, Kan. – Clara Peller would be pleased. The woman who made famous the phrase "where’s the beef?" starred in Wendy’s commercials in the mid-1980s, at a time when beef demand was slumping – badly.

The beef these days appears to be moving with some rapidity out of supermarket meat cases and into consumers’ homes, if early government data for 2001 is any indication.

After a 20-year slide, U.S. beef demand began to increase in the late 1990s, and the rebound appears to have continued through 2001, said Kansas State University agricultural economist James Mintert.

"Per capita beef consumption likely totaled about 68.1 pounds during 2001, a decline of 1.7 percent compared to 2000. However, inflation-adjusted retail beef prices rose about 6.5 percent – far more than would be expected from the modest supply decline if demand was held constant," Mintert said.

That means that choice retail beef demand actually increased 5 to 5.5 percent during 2001, the third straight year that retail demand increased, if government figures are accurate.

Mintert believes that the U.S. Department of Agriculture’s calculations might overstate the increase in demand somewhat, in that its Choice retail beef prices do not capture price changes in domestic beef eaten in restaurants. Nor do they very accurately measure prices consumers pay for beef during periods of high volume when many supermarket chains are running special features.

There is some evidence that indicates beef demand in the away-from-home market was weaker during late 2001, and retailers promoted beef aggressively, often with two-for-one or other discounts, late in 2001, the economist said.

"Nevertheless, the increase in retail beef demand was encouraging and it bodes well for 2002, especially if the U.S. economy continues to recover," Mintert said.

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K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.

Story by:
Mary Lou Peter, Communications Specialist
mlpeter@oznet.ksu.edu
K-State Research& Extension News