BEEF DEMAND INCREASED OVER HOLIDAY SEASON

DENVER, January 27, 1998 -- Average retail beef prices were slightly higher in November and December; most likely due to the increased demand for beef during the holidays, according to the National Cattlemen's Beef Association.

In the monthly analysis of national average retail beef prices, NCBA reports the USDA All Fresh Retail Beef Price was $2.55 per pound in December, compared to $2.54 in November, and $2.56 a year earlier. The USDA All Choice Retail Beef Price was $2.81 per pound in December, compared to $2.78 in November, and $2.87 a year earlier. NCBA's monthly analysis includes USDA data on 15 individual beef cuts and includes all grades (Choice, Select and ungraded.)

The NCBA/Cattle-Fax Meat Featuring Analysis Program noted the average featured retail beef price in December was $2.58 per pound, compared to $2.56 in November, and $2.65 a year earlier. NCBA and Cattle-Fax collect this data from newspaper advertisements featuring beef at special low prices. (An estimated 50% of beef purchased at retail sells on feature.)

Analysts report end meats, (cuts from the chuck and round), such as ground beef, ground chuck, chuck roast and round roast, were generally cheaper and provided consumers with bargains. The slightly increased prices for middle meats, such as beef loins and rib cuts, analysts say, were largely due to the increased demand for beef in holiday meals.

Average USDA and featured prices, respectively, of representative cuts in December were: Ground Chuck, $1.81/$1.62; Rib Roast (Choice), $5.21/$3.64; T-Bone Steak (Choice) $6.07/$4.45; Round Steak (Select or ungraded) $3.05/$2.75; and Sirloin Steak (Select or ungraded) $3.64/$3.73. (See reverse side of release for detailed data from NCBA analysis.)

The analysis also includes featured price data for five regions. The lowest regional average price for featured beef in December was $2.24 in the Western region compared to $2.86 in the Northeast.

This monthly analysis of average retail beef prices is funded by the national beef checkoff, which is administered by the Cattlemen's Beef Board. This 111-member board is appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, to certify state beef councils, to implement the provisions of the Federal order establishing the checkoff and to evaluate the effectiveness of checkoff programs. It is produced in cooperation with the National Cattlemen's Beef Association (NCBA). Initiated in 1898, NCBA is the marketing organization and trade association for America's one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington, D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation's food and fiber industry.

-- NCBA --

AVERAGE RETAIL BEEF PRICES
(National)
                           Average Retail Price^1  Average Featured Price^2

                            Dec.     Nov.   Dec.     Dec.    Nov.    Dec.
                            1997     1997   1996     1997    1997    1996
--------------------------------------------------------------------------
                          ($/lb.)  ($/lb.) ($/lb.) ($/lb.) ($/lb.) ($/lb.)
Ground chuck               $1.81    $1.85   $1.85   $1.62   $1.62   $1.58
Ground beef                $1.39    $1.41   $1.42   $2.01   $1.78   $1.62
Ground beef, lean and      $2.06    $2.05   $2.05   $1.84   $1.98   $2.10
  extra lean
Chuck roast, Select or     $2.15    $2.17   $2.23   $1.21   $1.08   $3.06
  ungraded
Chuck roast, U.S. Choice,  $2.45    $2.41   $2.47   $1.88   $1.94   $2.04
  boneles
Round roast, U.S. Choice,  $2.78    $2.81   $2.95   $2.31   $2.24   $2.44
  boneles
Round roast, Select or     $2.70    $2.73   $2.73   $2.41   $2.49   $2.50
  ungraded
Rib roast, U.S. Choice,    $5.21    $5.19   $5.09   $3.64   $3.78   $4.01
  bone-in
Steak, T-Bone, U.S.        $6.07    $5.89   $5.87   $4.45   $3.98   $4.51
  Choice, bone-in
Steak, rib-eye, U.S.       $5.94    $5.79   $5.90   $6.18   $6.25   $6.30
  Choice, boneless
Steak, round, U.S.         $3.09    $3.09   $3.22   $2.32   $2.34   $2.40
  Choice, boneless
Steak, round, Select or    $3.05    $3.04   $3.03   $2.75   $2.87   $3.05
  ungraded
Steak, sirloin, Select or  $3.64    $3.52   $3.67   $3.73   $3.70   $3.74
  ungraded
Steak, sirloin, U.S.       $4.17    $4.23   $4.23   $3.97   $4.43   $4.05
  Choice, boneless
Beef for stew, boneless    $2.51    $2.52   $2.56   $2.43   $2.36   $2.42

USDA All Choice Retail     $2.81    $2.78   $2.87
  Beef Price
USDA All Fresh Retail      $2.55    $2.54   $2.56
  Beef Price
MFAP Featured Retail                                $2.58   $2.56   $2.65
  Beef Price    


AVERAGE FEATURED RETAIL BEEF PRICES
(By Region)
                                  December  November December
             Region                 1997      1997     1996
                                  ($/lb.)   ($/lb.)   ($/lb.)
          ---------------------------------------------------
            Northeast              $2.86     $2.97    $2.95
          North Central            $2.69     $2.37    $2.49
            Southeast              $2.51     $2.36    $2.38
             Central               $2.27     $2.28    $2.26
             Western               $2.24     $2.14    $2.25
           U S Average             $2.58     $2.56    $2.65

Sources:  ^1 USDA Economic Research Service (based on U.S. Bureau of Labor
          Statistics)  and ^2 NCBA/Cattle-Fax Meat Featuring Analysis Program
          (MFAP) -- (Most recent month calculations based on preliminary data)

Northeast:  ME, NH, VT, MA, NY, PA, NJ, CT, RI, MD, DE
North Central:  MN, WI, MI, IL, IN, OH
South East:  VA, WV, KY, TN, NC, SC, GA, AL, MS, AR, LA, FL
Central:  IA, MO, OK, KS, TX, CO, NM, NE, SD, ND, MT, WY
Western:  WA, OR, ID, UT, AZ, CA, NV (Data is not available for Hawaii and
          Alaska)