Supply and demand determine price. In the beef industry, it has been assumed – consumers won’t pay more for a steak, roast or ground product. A group of Ag economists conducted an extensive analysis and found millenials have a different attitude about price and quality.
The United States beef herd has grown over the past three years. The total inventory increase has slowed within the past year as producers have sold most of their calf crop into the consumer marketplace. Producers are generally making less money than in 2014, but demand has kept up with larger supplies.
Dr. Glen Tonser, a livestock economist from Kansas State University, was part of an extensive analysis of beef demand, especially from the millennial generation. Tonser says the study clearly shows consumers want higher quality beef.
To read the full “Assessing Beef Demand Determinants” report, click here.