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Angus Journal

Copyright © 2015
Angus Journal


The Role of Ground Beef in Today’s Market

Ground beef continues to grow in popularity among consumers, but economics drive continued focus on fed beef as target for young cattle.

SAN ANTONIO, Texas (Feb. 4, 2015) — The versatility of ground beef for use in a variety of recipe and meal options keep it a popular food staple that most families have in their refrigerator, pointed out NCBA’s John Lundeen during a Cattlemen’s College® session focused on the “Role of Ground Beef in Today’s Market.” The 22nd annual Cattlemen’s College was hosted Feb. 4 as a precursor to the Cattle Industry Convention & NCBA Trade Show in San Antonio, Texas, Feb. 4-7.

Tom Brink and John Lundeen
Tom Brink and John Lundeen

From burgers and meatloaf to spaghetti and tacos, ground beef offers consumers ample options for use in multiple recipes — especially ones kids like, Lundeen noted. Other attributes of ground beef for consumers include its moderate price, quick and simple preparation, and ease in portioning.

“I think the closest competitor is the chicken breast,” Lundeen noted.

He shared market research indicating consumers very much prefer the taste for beef. In a survey comparing ground beef to ground turkey, results showed a preference for beef with a 10-to-1 margin.

“We like to have this data to support checkoff efforts and to stay informed of what consumers are looking for,” Lundeen said.

Because of the continuing popularity of burgers, Lundeen noted that there are many who are trying to compete with market share for ground beef — from tofu and Boca burgers to plant-based burgers made from chickpeas.

“We want to continue to work to defend our market,” he said. To aid consumers with recipes for ground beef, special recipes and resources are featured online at www.beefitswhatsfordinner.com/groundbeef.aspx.

Also during the Cattlemen’s College session, Tom Brink shared thoughts on whether more young cattle should be fed specifically for the ground beef market, which was a premise getting much discussion after Rabobank AgriFinance published the paper Ground Beef Nation in early 2014 highlighting consumers’ increasing consumption of ground beef during the past two decades. Ground beef now represents nearly 60% of total volume of beef sales.

However, ground beef is consistently only about 20% of total value from beef at the wholesale level, noted Brink, who has worked in the beef industry all of his life. “We are both a ground-beef nation and a fed-beef nation. We can be both. They are not in competition. Both have a role in our industry.”

He added, “With our younger cattle we are focused on a fed-beef nation for economically driven reasons. … If someone wants to try to short-feed cattle for the ground-beef market, I can guarantee they will only try that one time … because the money won’t be there.”

He concluded, “Ground beef is very important, but I believe it’s secondary and will remain that way.”

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