Disaggregating Beef Demand: Data Limitations and Industry Perspectives

Abstract

The United States beef industry contributes nearly $70 billion (Industry Statistics, 2019) to the American economy and provides over 27 billion pounds of product each year (LMIC, 2018). The aim of this research was to better understand the complexities of the beef supply chain and what determines beef prices and demand. Through over thirty interviews with individuals representing 21 different companies and organizations, many determinants and factors impacting the beef supply chain were uncovered including exports, increasing carcass size, labor and trucking challenges, bone-in product popularity, food service and retail grocery differences, value-added products, fresh versus frozen product use, and changing consumer trends. Each of these topics are discussed in further detail throughout the report in addition to quantitative results found using the little data that was available. The end result is an aggregated report of challenges and opportunities facing the beef supply chain and evidence that more data needs to be available in order to calculate a complete beef demand system.