Analyst: Recession Slashes Consumer Meat Demand

WICHITA, Kan. — As the recession deepens, people are eating less beef, pork and poultry, leading to the biggest per capita decline in meat consumption since 1982, an industry analyst told the Kansas Livestock Association.
 
Hundreds of cattlemen gathered here for the group's annual convention amid fears over a global credit crisis and concerns about stricter environmental regulation under the Obama administration.

Consumers have already begun buying cheaper cuts of beef this year, CattleFax analyst Randy Blach said.

Per capita consumption of chuck was up 10 percent, while consumption of more expensive loin was down 7 percent so far this year, his statistics showed.

"This is one of the absolute worst years," Blach said.

Cattlemen on average lost $130 a head for their cattle this year, he said.

"I was surprised by the magnitude of losses this year, but I am not surprised we lost money," Blach said.

His outlook for next year was also grim. Blach forecast livestock inventories to continue shrinking and per capita meat consumption to decline. He also expected costs to remain high, with tighter profit margins.

The global demand for beef will outstrip supplies, although the recession may slow that demand, he said. The global credit crisis will take months to stabilize but he said he thought the dollar has already bottomed out.

However, Blach also anticipated U.S. beef exports to increase next year by 27 percent because of a full year of access to Korean markets.

Source: The Associated Press