Strong Beef Demand Drives Producer Profitability, Checkoff Efforts Expand Outreach

By Jason Vance

The U.S. beef industry is experiencing one of the most profitable periods producers have ever seen, driven largely by sustained and growing consumer demand, according to Terry Palm of the Cattlemen’s Beef Board.

Palm, a longtime cattle producer with decades of experience in the industry, said current market conditions are unprecedented.

“I don’t think there’s a time in history where the beef production industry has been this profitable for producers across the country,” Palm said. “A big part of that is demand for our product.”

Despite rising beef prices over the past two to three years, Palm noted that consumption has not declined. In fact, demand has continued to increase.

“As prices have gone up, consumers haven’t backed off,” he said. “They’ve actually increased consumption. That tells us we’ve got a product with the taste, tenderness and nutritional value people are looking for.”

Palm said that level of demand is something producers should take pride in, as it reflects the quality and consistency of U.S. beef.

“Producers are putting a product on the market that people are asking for,” he said.

Recent consumer research does show some shifts in buying habits. Data from the Beef Demand Monitor — a beef checkoff-funded survey conducted by Kansas State University and U.S. Cattlemen that polls about 2,000 consumers each month — indicates consumers are adjusting purchases slightly.

“We’re seeing some movement from higher-value cuts toward more roasts and ground beef,” Palm said. “It’s a modest change, but it reflects how consumers are adapting while still choosing beef.”

Palm also highlighted the broad range of initiatives supported by the beef checkoff, which focuses on research, promotion, education and market development.

“We take a well-rounded approach,” he said. “That includes consumer research and promotion, producer communication, foreign marketing and education.”

International markets play a significant role in cattle values, Palm added, noting that roughly $400 of the value of a fed steer is tied to beef and beef products sold overseas.

“That foreign marketing work is extremely important to the bottom line,” he said.

Education remains another major focus of checkoff efforts. Through a partnership with the American Farm Bureau Federation, beef industry science-based curriculum is being taught in classrooms across the country.

“This program teaches students from conception to the steak plate,” Palm said. “It’s telling the beef industry story using science and research funded by the checkoff.”

Currently, about 1.3 million students are reached through the program, which is delivered through mainstream science curricula rather than traditional agricultural education. Palm said the program has earned recognition as being in the top one percent of science programs nationwide.

“That’s why science teachers are seeking it out,” he said.

Promotion efforts also extend into sports and nutrition education. Palm pointed to the Beef. It’s What’s For Dinner campaign’s presence at the Little League World Series, where beef’s role in nutrition was highlighted for young athletes, parents and health professionals.

“We were there talking about how beef helps build strong bodies and provides the endurance young athletes need,” he said.

Palm said all of these efforts share a common goal.

“We’re focused on keeping beef demand strong, keeping it high, and making sure producers can remain profitable,” he said.