Analyst: Recession Slashes Consumer Meat Demand
As the economic recession in the U.S. continues to worsen, people are reportedly eating less beef, pork, and poultry products, leading to what one analyst describes as “the biggest per capita decline in meat consumption since 1982.”
The news of declining per capita meat consumption came at a meeting of the Kansas Livestock Association. Analysts also say that demand is increasing for less expensive cuts of meat. Per capita consumption of ground chuck is up 10% while per capita consumption of more expensive loin is down 7% this year so far.
CattleFax analyst Randy Blach predicts that inventories will continue to shrink, per capita consumption will continue to decline, costs will remain high, and profit margins will be tighter. Global demand for beef will continue to outweigh supplies and exports will likely increase by 27% due to Korean markets.
The U.S. cattle herd is the smallest in size since 1962 and is expected to shrink another 2% in 2009. Cattle ranchers lost an estimated $130 per head, on average, for each of their cows this year. However, production is strong due to heavier carcass weights from improved genetics and nutrition.