Health Information and Impacts on the Beef Industry

Abstract

The economic well being of cattle producers depends upon numerous factors, including consumer demand for beef, red meat and poultry supplies, marketing costs, international beef trade, and agribusiness concentration. Changes in consumer beef demand are transmitted through the marketing channel and affect meat packer demand and prices for slaughter cattle and feedlot demand and prices for feeder cattle. Since the mid 1970s, consumer demand for beef has declined due to changes in consumer preferences, demographics, and relative meat prices (Marsh 2003). Based on an estimated annual retail beef demand index, retail beef demand declined by about 47 percent from 1970 to 2004. However, more recently, from 1998 to 2005 the index increased by about 22 percent (LMIC).