Title: THE DEMAND FOR BEEF PRODUCTS: CROSS-SECTION ESTIMATION OF DEMOGRAPHIC AND ECONOMIC EFFECTS
Abstract: This paper presents estimates of the economic and demographic effects on the demand for steak, roast, and ground beef. Using an almost ideal demand system, the results indicate that demand is inelastic for steak and ground beef, elastic for roast, cross-price effects are significant, and all goods are Hicks-Allen substitutes. The impact of certain demographic effects, such as household size, region, tenancy, and ethnic origin, was generally quite significant. Other demographic variables, such as employment status, shopper, and occupation, were generally not significant. The composition and quantity of red meat consumed in the United States has changed considerably in the past two decades. During this period beef producers and marketers have looked for explanations which offer insights about future changes in consumer demand. A recent National Cattleman's Association nineteen-city survey (Beefweek) of beef cut demand has indicated that the mix of beef cuts demanded continues to be a concern in the retail market. The Cattleman's survey has shown a continued decline in demand for roast cuts in relation to steak cuts and ground beef. Given the relative importance of the beef industry to the agricultural economies of many states, these concerns have not been taken lightly. On the production side, producers have the ability to alter the composition and quality of retail cuts through breeding, but a lag between the recognition of a change in demand and the production response still exists. This lag, and the expense associated with producing animals poorly suited to the needs of the market has made it all the more important to examine the demand for beef in terms of retail cuts. Unfortunately, the research to date, while useful, has left a gap in beef demand by not looking
Publication Year: 1988
Publication Date: 1988-07-01
Language: en
Type: article
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Cited By Count: 43
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