Ground beef has solid demand

Livestock Outlook: Despite solid retail ground beef demand, pricey feed could boost culling rates and weigh on cull cow markets.

 

Lee Schulz, BEEF Magazine

Apr 01, 2021

 

Schulz is an Iowa State University Extension livestock economist.

 

In 2020, the ingredients for a home-prepared, quarter-pound cheeseburger totaled $1.84 per burger. This is based on USDA Economic Research Service calculations using data from the U.S. Bureau of Labor Statistics.

 

Ground beef made up the largest cost at $1.03, and cheddar cheese accounted for 34 cents. The bun, lettuce and tomato were 18 cents, 6 cents and 23 cents, respectively. In real terms i.e., 2020 dollars this same cheeseburger would have cost $1.76 to prepare in 2019. Higher ground beef prices accounted for all of the increase between 2019 and 2020. Ground beef prices rose 8%, translating into an 8-cent-per-burger hike.

 

The only time the cost of an at-home cheeseburger was higher was in 2015. Then a cheeseburger cost $1.86, with ground beef at $1.04 and the other ingredients similar to recent values. Last year's 27.15 billion pounds of U.S. commercial beef production was a sizable 15% increase compared to 2015. But insatiable retail demand held ground beef prices near 2015's level.

 

Ground beef consumption was estimated at just over 27 pounds per capita in 2020. That's more than 46% of total U.S. retail beef consumption...

 

Current lean supplies adequate ...

 

Imports aid blending ...

 

Ground beef drives cull cow market ...

 

more, including chart

https://www.beefmagazine.com/marketing/ground-beef-has-solid-demand