Beef Industry Issues Forum Focuses on Changing Demographics

DENVER (Feb. 8, 2005) America’s changing demographics and the effect on the beef industry were among the major topics of discussion during a Beef Industry Issues Forum at last week’s Cattle Industry Annual Convention and Trade Show in San Antonio. 

Changing demographics mean a wealth of new opportunities for the beef industry for several reasons. The Hispanic market is growing and gaining more disposable income. Though aging, the 69 million Baby Boomers continue to wield enormous cultural influence. The future consumers that make up the youth market are influencing more family food decisions on a daily basis.

Ongoing demographic market research is funded by America’s Beef Producers through the $1-per-head Beef Checkoff Program. It is coordinated on behalf of the Cattlemen’s Beef Board and state beef councils by the National Cattlemen's Beef Association, which serves as one of the Beef Board’s contractors for checkoff-funded programs.

Eliza Cantero, a strategic planner for Lapiz Integrated Hispanic Marketing, told participants at the annual cattle convention that by 2015, the Hispanic population in the United States is expected to grow to more than 50 million. This is good news for beef producers, because this market is very beef friendly, and spends more than $55 billion on food annually.  By 2007, its buying power will be nearly 10 percent of total domestic expenditures, and food is considered an important cultural bond between generations.

In 2002, the Hispanic market’s buying power was $581 billion. But this figure is expected to rise to $926 billion by 2007.  Food marketers should be very interested in the Hispanic market, and being able to reach Hispanics with resonating messages in both English and Spanish will be key to establishing them as loyal consumers now and in the future.

Dave Coronna, executive vice president of Burson-Marsteller/USA identified the 69 million Baby Boomers as the largest generation group in American history – adding that this group also knows more about nutrition than any other group of seniors before them.  “They are open to life exploration, travel and ethnic foods. They seek products, services and a lifestyle environment that expresses their unique inner convictions to themselves and to others.  Eating beef is an enjoyment experience for them, and their buying trends will influence the U.S. economy for many years to come,” Coronna said.

Another demographic unit of importance to the beef industry is the youth “tween” market, which includes 32.5 million kids that are 8 to 12 years of age. They spend an average of $6.77 per week, or a whopping $11 billion a year.  The number of youth aged 17 and younger increased by more than 8 million in the 1990s. 

“They are the adult consumers of tomorrow but they are influencing family food purchases today,” said Mary McIlrath, director of qualitative youth services for Creative & Response Research Services, Inc.  “According to recent studies, kids see food as necessary for survival, as an energy source and also for emotional satisfaction.”

Healthy eating is not a top priority for children but is more important to girls. Motivating them to eat beef will involve an emotional appeal involving pleasure, personal development or social acceptance, McIlrath said.

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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. The checkoff assessment became mandatory when the program was approved by 79 percent of producers in a 1988 national referendum vote. Checkoff revenues may be used for promotion, education and research programs to improve the marketing climate for beef.

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.