Positioning the Beef Industry for the Future

Gary W. Brester Associate Professor Dramatic changes in productivity, product developments, and meat product promotion have influenced consumer demand for meat. Although the beef industry has experienced increases in production efficiency, primary competing sectors (i.e., pork and poultry) have experienced even larger productivity gains. In addition, the pork sector appears well positioned for additional significant efficiency increases in the near future. Efficiency gains in the poultry sector caused part of the beef demand decline observed over the last fifteen years. Future productivity gains in pork production and marketing could have similar effects on beef demand during the next decade. Product promotion has been used by the beef industry to mitigate declining demand. To date, promotion efforts have been small compared to major food marketing firms, and have had little effect on beef prices. To remain profitable, the beef sector needs to closely examine its competitive position relative to other meats and focus its efforts where they will have greatest effect. This article discusses these issues and outlines strategies the beef industry may wish to consider when positioning itself in this dynamic environment.