Americans, most of them, still want to eat meat. Without all that extra cash that they received from the federal government following the outbreak of COVID-19 – and the higher inflation that followed – they may choose cheaper sources or cuts of meat. But they are still eating it.
The challenge for livestock producers and ranchers is how do they increase demand for American-produced meat? Convince more Americans to eat more meat? Sure, but Dr. Glynn Tonsor doubts that will happen.
RELATED: Dr. Glynn Tonsor told National Hog Farmer that pork chops remain a bit of a mystery that merits more study. He wonders whether some Americans question if they have the culinary skills to cook chops to their satisfaction and instead prefer to eat them when they go to a restaurant. Read that here.
And it’s not because the country is suddenly turning into vegetarians. Tonsor -- the Kansas State University Department of Agricultural Economics Professor who researches meat consumption trends each month – believes that American meat consumption has largely remained the same and will likely in the future, as well.
He thinks it will be global consumers who represent the greatest potential for American producers. “We export,” Tonsor said, “something like 20-25 percent of the pork we produce…over 15 percent of the beef we produce.”
Tonsor thinks exports can grow as the global appetite for meat increases. “We need to boost demand, not just consumption, because you don't necessarily improve profitability by only increasing consumption.”
In other words, it is not enough just to get people to eat meat. For the American meat industry to expand, it needs to boost demand for its products in other countries. That increases cost for the meat and raises incomes for American producers.
A USDA report in February laid out a projection for the year ahead for the livestock industry. It included this:
“Total animal/animal product receipts are projected to decrease by $4.6 billion (1.9 percent) to $239.8 billion in 2024. Receipts for eggs, turkeys, cattle/calves, and milk are forecast to fall relative to 2023.” Full USDA report here.
Tonsor has a monthly reminder about why he doesn’t believe that Americans alone can boost the meat demand that the U.S. industry craves. That reminder comes from his Monthly Meat Monitor Index.
The index samples 2,000 – 3,000 people from across the country each month. “It's done in a way that's representative by state, age, income, education, and ethnicity. So, we're trying to make a national pulse,” Tonsor said.
Based on those responses, Monthly Meat Demand Monitor provides data on what people are willing to pay for meat, how that varies from home and restaurant purchases, what factors are most important when buying meat, when Americans eat meat, and what share of the market each type of meat has.
Americans, according to this survey:
Are willing to pay most for a ribeye steak meal.
Freshness and taste are the two most important factors.
Americans eat breakfast at home more often than lunch or dinner.
A factor to watch, Tonsor added, was how Americans feel about their finances. It isn’t the sentiment about their actual finances. Although, that could obviously be directly tied to how they feel about their money situation.
How they feel about their finances could impact how much meat they buy, which type of meat, and what cut of meat.
