Although beef consumption is declining due to tightening supplies, the fact is consumers are paying more for available supplies than they would if true demand weren&rsquo;t increasing. Through the third quarter, the All Fresh Beef Demand Index increased 16 of the last 17 quarters year-over-year, according to Glynn Tonsor, agricultural economist at Kansas State University.
Beef supplies may be declining and retail prices increasing, but consumers are demanding more.
In fact, through the third quarter this year, the All Fresh Beef Demand Index (AFBDI) increased 16 of the last 17 quarters year-over-year, according to Glynn Tonsor, agricultural economist at Kansas State University. Year-over-year, both the AFBDI and the Choice Retail Beef Demand Index were 3.9% higher in the third quarter.
In other words, although beef consumption is declining due to tightening supplies, the fact is consumers are paying more for available supplies than they would if true demand weren’t increasing.
Across the four major species, Steiner and Meyer say RPCE was $49.24 in September, the highest level since September 2004.