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A closer look at beef consumption trends

The USDA has projected domestic beef consumption to decline for both 2023 and 2024.  David Widmar with Agricultural Economic Insights says that could spell trouble for the cattle industry and the overall farm economy.  “We have less pounds of beef being demanded or utilized by consumers and it’s going for lower price,” he says.  “That means it’s lower revenues, lower calf prices, lower cow prices, lower passenger rent, lower passenger values.”

In 2022, U.S. beef consumption was estimated at 59.1 pounds annually, the highest since 2010.  In May, USDA forecasted 2023 beef consumption to slip to 57 pounds, and for 2024, consumption is expected to drop to 52.8 pounds.

He tells Brownfield beef is also seeing some increased demand from other proteins. “How far does my dollar go in poultry versus maybe in beef, in steaks, or hamburger,” he says.  “I think it also plays out on the menu at restaurants.  They are also looking at this, wondering what can were put on the plate for a $10 meal or a $12.00 meal?”

Widmar says consumption data alone can’t be used to predict demand, which is the relationship between prices paid and the quantities consumed.