Beef Demand Continues to Grow
After decades of decline, USDA reports demand for U.S. beef is on the way up.
"We've gone through a major change in beef demand from where we were back in the early 1980s from where we are currently today,” said CattleFax executive vice president Randy Blach. “From 1980 to 1998, beef demand was cut in half, that means half the people were not enjoying their eating experience, that's not acceptable."
Since then, Blach said the quality began to improve, and as beef got better, consumer income levels increased, along with their desire and ability to buy higher quality beef.
"The spreads have held together very well,” said Randy Blach. “The choice-select spread is at $10 again this year, that's where it's averaged over the last ten years. So, even though the grade has improved 25%, again going from 55% choice and prime to 80% choice and prime, the spreads tell us that's what the market wanted and people are willing to pay more for that type of eating experience."
Blach added that increased demand goes beyond our borders, adding value to beef exports and more profit for all sectors of the beef industry.
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