Dennis Sun: Beef is Still King

Despite the rising price of beef, consumers have not backed away from purchasing it. I believe the main reason for this is because of the high quality of beef products on grocery store shelves.

The movement for better-quality beef started around 20 years ago. At the time, I don’t think anyone had any notion of the current quality of beef and record-high prices.

A number of years ago, seedstock producers had identified different genetic traits in their bulls. Back then, it was a way to inform and make it easier for livestock producers to select bulls, mainly on birth weights of the bulls’ offspring.

It was a great tool for producers to use as many other traits were developed. Then, seedstock producers started to ultrasound bulls’ rib loin for size and marbling, which in turn produced a higher-quality beef carcass. This genetic trait gave consumers just what they wanted – a tender, flavorful steak or other cut of beef that tasted great.

These improved carcasses produced more meat of the upper-Choice and Prime quality, which in turn made cattle producers, feeders and processors more money, along with the restaurant trade.

No one figured what would happen when high-quality beef would be in short supply because the world’s growing population wanted and could afford beef.

Last year, the retail beef price was nearly $8.25 per pound which was a new record, all while gaining a higher market share.

During the last five years, beef spending growth outpaced the consumer price index by 2.7 percent annually. Despite some worries consumers may switch to cheaper meats or grain proteins, U.S. beef keeps gaining traction in the marketplace.