Protein pricing urges beef quality
March 17, 2011
While those of us in the cattle industry would like consumers to go to the meat case with only one protein purchase in mind, the reality is consumers do have choices and have to make decisions where they spend those hard earned dollars. Of course, taste preferences play a big part but no doubt price does as well. What is quite interesting is to look at the average retail prices of beef, pork, and chicken over the past 13 years. And more important than the actual average price is the dollar per pound difference between the options.
Going back to 1998, beef was priced at about $2.50/lb. That price was just 4% higher than pork and 64% higher than chicken. By 2010, those differences had changed drastically. Beef commanded an average price of about $4.00/lb which was 29% higher than pork and 130% higher than chicken. Even at that, I know I’m not quite ready to trade down from a hearty ribeye to a boneless, skinless chicken breast. That is exciting news from one perspective as it certainly reflects demand growth and consumer preference for beef. At the same time, it should serve as a great reminder that we must stay focused on producing and offering a high-quality end product. If we are going to ask consumers to spend considerably more on beef than other options in the case, we better make sure it tastes great and meets their expectations. With that in mind, I hope you’re still willing to choose beef this St. Patrick’s Day! -Mark
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