Beef Demand Exhibits Continuing Strength in First Quarter 2004

DENVER (May 20, 2004) - Consumer demand for beef showed continued strength in the first quarter of 2004, with preliminary data showing the Beef Demand Index increased 10.4 percent compared to the first quarter 2003.   The first quarter gains suggest support for the annual 2003 figures released in March, which showed that demand was up 5.76 percent compared to 2002.  The Beef Demand Index is a reflection of the combination of per capita consumption and consumer spending for beef.

“Consumers remain confident in the safety of U.S. beef, despite the discovery of this country’s first case of Bovine Spongiform Encephalopathy (BSE) at the end of last year and the closure of key export markets,” said Nelson Curry, chairman of the Cattlemen’s Beef Board (CBB) and beef producer from Paris, Ky.  “Looking ahead, this is good news for cattlemen and the beef industry in this critical time in our industry’s history.” 

"The robust economy coupled with strong consumer spending and the changing perception of protein in the American diet have all contributed to this increase," said Gregg Doud, chief economist for the National Cattlemen’s Beef Association, which is one of the CBB’s contractors on beef checkoff programs aimed at building demand for beef.   “This demand figure confirms the public opinion polling CBB conducted most recently showing that more than 89 percent of the U.S. population said they felt the beef supply is safe."

The Beef Checkoff Program has been able to fulfill consumers’ appetite for beef by introducing new products and reinforcing the convenience, nutrition and safety of beef.  The industry’s goal will be to continue to steadily improve the marketplace for U.S. beef producers and keep beef top of mind for consumers.  In coming months, the beef industry, through its checkoff program, will focus on promoting beef though a variety of activities aimed at summer grilling, including in-store promotions, advertising, partnerships with Sutter Home Winery and A.1. Steak Sauce and Marinades, and public relations initiatives.

Consumer Education and Confidence

The recent BSE case in the U.S. underscores the importance of consumer education about food safety.  And while the presence of BSE in this country has resulted in increased consumer awareness about the disease, recent checkoff consumer surveys indicate consumers have received the information they need to understand that the beef supply in the United States remains the safest in the world.  In fact, a beef checkoff-funded tracking survey conducted by an independent research firm in April 2004 found that 89 percent of consumers remain confident in the safety of U.S. beef with consumer awareness of BSE/mad cow disease at 75 percent.

Nutrition Awareness

In building beef demand, the Beef Checkoff Program helps showcase beef's role in meeting the nutritional demands of today's health-conscious consumers.  Armed with new information, Americans are rediscovering the nutritional benefits of beef due to a better understanding of beef’s nutritional role in the diet.

The Beef Checkoff Program’s nutrition print ads, launched last year, show a delicious lean beef meal and how lean beef has only one more gram of saturated fat than a comparable 3-ounce serving of skinless chicken breast - yet packs a nutritional punch with eight times more vitamin B12, six times more zinc and three times more iron.

New government data have identified 19 cuts of beef that meet government guidelines for lean.  These lean cuts contain less than 10 grams of total fat, 4.5 grams or less of saturated fat, and less than 95 milligrams of cholesterol per serving and per 100 grams, and include some of America’s favorites such as tenderloin, T-bone steak and 95 percent lean ground beef.  Research also shows calorie-for-calorie beef is one of the most naturally nutrient-rich foods. 

New Product Development

The Beef Checkoff Program also enables the industry to research and introduce new beef products into the marketplace.  In fact, since the checkoff began focusing on new product development efforts about six years ago, more than 2,100 new beef products have come to market, providing increased options for consumers at their local restaurants and grocery stores. 

“The Beef Checkoff Program has been critical in getting new products out there that appeal to consumer demand for convenience, variety, versatility and nutrition,” said Curry.

Promotion of new beef products by the private sector also is playing into the demand equation.  More than 800 restaurants and five new retailers have sold six million steaks developed by the checkoff-funded new product development team known as the R&D Ranch.  These include the Flat Iron, Shoulder Tender and Ranch Cut, which consumers can find at the LoneStar Steakhouse, Humperdink’s, Bubba Gump Shrimp Co., and in a growing number of meat cases nationwide.

www.BeefItsWhatsForDinner.com

To complement its popular “Beef It’s What’s For Dinner” advertising, the Beef Checkoff Program launched its consumer-friendly Web site, www.BeefItsWhatsForDinner.com, in 2003, in an effort to provide a helpful resource for consumers to find beef recipes, nutrition and safety information and expert insight on beef shopping and cookery.  The site allows the beef industry to communicate directly with consumers and provide them information about their favorite protein.

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Beef industry demand building efforts are funded by the Beef Checkoff Program.  The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

Producer-directed and consumer-focused, the NCBA is a trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.