Beef Demand Determinants Project
This presentation was conducted by agricultural economists from Kansas State University and Michigan State University. It identifies ways that the beef industry can grow demand during the economic recession. In this study, researchers found that nutrition, safety, and convenience are important criteria for consumers.
The findings of this study showed that price does have an effect on beef demand, but that modest price fluctuations do not have a significant impact on demand. Therefore, economists recommend that consumers have primarily non-price reasons for shifting away from beef consumption.
Food safety recalls were found to decrease demand for beef. However, investment in the development of new production or processing technologies to enhance the nutritional properties of beef may be a way to increase demand.
This study also found that as consumer demand for convenient products increases, beef demand suffers, but poultry and pork demand benefits. This may be due at least in part to the pace of new product introductions. From 1997 to 2008, a search for products using “convenient,” “ease of use,” or other time saving claims identified 5,633 new poultry products, but just 3,579 new beef products.