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Saturday, May 22, 2004 Western drought, consumer demand push beef pricesNews-Journal Staff and Wire Report Consumers will probably have to pull a bit more out of their pocketbooks for burgers and steaks to put on the grill this summer. Most retail prices climbed slightly in April, while consumer beef demand — a combined measure of price and per capita consumption — increased 10.4 percent in the first quarter, the National Cattlemen’s Beef Association said Wednesday. The blame can be placed largely on the multiyear drought in the West, where less grass has been available to feed cattle. In turn, herds have not expanded to meet demand for four to five years, association chief economist Gregg Doud said. Other factors are the recovering economy that is prompting consumers to spend more and the popularity of high- protein diets, he said. “I don’t see much of a change in the supply-and-demand equation here through, quite frankly, the end of the year,” he said. In the January-March period, overall production declined 7 percent, Doud said. Consumption was down about 1.4 percent in the same period, said Jim Robb, director of the Livestock Marketing Information Center. Association surveys indicated consumers remained confident in the safety of beef products nearly six months after the first U.S. case of mad cow disease was confirmed in Washington. In April, retail beef prices climbed in most categories, association figures showed. For example, ground chuck increased to $2.49 a pound from $2.21 in April 2003; boneless round steak, $4.06 a pound, up from $3.74; boneless sirloin steak, $6.61 a pound, up from $4.58. Boneless chuck roast dropped to $3.23 from $3.40. Jennifer Young, spokeswoman for Gene’s Steakhouse in Daytona Beach, said officials there held the line on menu prices this year despite having to absorb an increase at the wholesale level. “It was pretty tough in the fall for three or four months,” Young said in a telephone interview Thursday. In recent months, prices have dropped slightly for some items and remained the same for others, Young said. “I hope we don’t see another in rise in prices.” Reaction among local grocers was mixed. Charles Young, store manager for the Albertson’s in Daytona Beach, said company officials were doing their best to remain competitive in the market with their beef prices. George Michael, owner of Pearson’s Grocery in Daytona Beach, said he has not really raised beef prices in several years. “Demand for beef is not as great here in this area. People don’t have the money,” Michael said, adding most consumers buy poultry and pork. |
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