FAVORABLE BEEF PRICES COULD BE ON THE HORIZON FOR CONSUMERS

WASHINGTON, D.C., (October 3, 2001) – Consumers should keep their eyes open for favorable beef prices at retail and foodservice outlets as the beef market adjusts to current economic conditions, says the National Cattlemen’s Beef Association (NCBA).

According to the NCBA – the trade and marketing organization for America’s beef producers – lower air travel and tourism in the past three weeks have led to a short-term supply surplus for U.S. beef. Overall market uncertainty related to declines in U.S. stock markets spilled over into the live cattle markets as well. As a result, live cattle prices have declined slightly for the short term, which usually makes for lower wholesale and retail prices now.

“Consumer demand for beef has been up 10 out of the last 12 quarters,” said NCBA Chief Economist Chuck Lambert. “With ample beef supplies for the rest of 2001, we are encouraging supermarkets and restaurants to take advantage of lower prices now and pass those savings on to consumers. In early 2002, beef supplies will tighten due to the normal production cycle and prices should begin to increase again.”

NCBA is working on several fronts to move the surplus through the supply chain, including: requesting that the U.S. Department of Agriculture make additional purchases of beef for the school lunch program; working with exporters to encourage an increase in beef exports to world markets; and alerting retailers and foodservice operators about the favorable prices.

“For those who love the taste and quality of U.S. beef, lower beef prices could present opportunities to stimulate the economy by offering consumers additional reasons to return to day-to-day activities such as dining out and traveling,” Lambert said.

Lambert and other industry experts say it’s too early to tell if the September 11th attacks will have an impact on overall beef demand, which has been on the upswing since 1999. Third quarter 2001 demand figures are expected in late-October.

# # #

Beef industry demand-building efforts are funded by beef producers through their $1-per-head checkoff program and are managed domestically for the Cattlemen’s Beef Board and state beef councils by the National Cattlemen’s Beef Association. The national beef checkoff is administered by the Cattlemen’s Beef Promotion and Research Board. This 110-member board is appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, certify state beef councils, implement the provisions of the Federal Order establishing the checkoff and evaluate the effectiveness of checkoff programs.

Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the 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.