News Update
Feb. 12, 2009

Kansas Livestock Association Launches “Project Beef”

Sue DeNise, vice president of genomics research and development for MetaMorphix Inc. (MMI), Davis, Calif., and Mark Gardiner, president of Gardiner Angus Ranch, Ashland, Kan., will join Kansas State University’s (K-State’s) Dave Nichols for the first in a series of live web programs designed to provide timely and factual information.

The first webcast in the series, “Genetic Defects — The Old, The New and The Misunderstood” will air at 8 p.m., Monday, Feb. 16. Anyone with Internet access can log on to www.kstate.tv/kla to view the webcast.

DeNise will address the science of defining genetic defects and the development of reliable tests. Gardiner will discuss the role and responsibility of seedstock and commercial beef producers in mitigating the impact of genetic defects in the beef cattle population. The program will include approximately one-half hour of discussion. The remainder of the program will be reserved to respond to questions e-mailed from viewers. The webcast is free of charge.

For those unable to view the program live, a full-length video will be available at www.kstate.tv/kla and www.kla.org or contact Brett Spader at brett@kla.org.

— Release provided by KLA.

Veterinarian to Discuss WSU BVD Project with Ranchers Feb. 25

John Wentz, assistant professor in the Field Disease Investigative Unit of Washington State University (WSU) College of Veterinary Medicine, will review the first year’s findings of WSU’s Bovine Viral Diarrhea Control and Eradication Project, during a telephone conference with ranchers from 12:15 p.m. to 1:15 p.m. on Wednesday, Feb. 25.

“The purpose of the project is to promote beef herd health through best management, herd health practices and screening for undetected persistent BVD infections that rob a beef herd of productivity,” said Tom Platt, area extension educator for WSU Lincoln County Extension.

Wentz tested 7,000 cattle last year for persistent BVD infections, according to Platt. The veterinarian would like to double that number this year and is recruiting herds for participation in the project.

The conference call is the last in a series of five lunch-time Beef Information Series scheduled in January and February. The series has been sponsored by WSU Lincoln County Extension.

Ranchers can participate in this conference from home by calling WSU’s telephone conferencing center in Pullman. Advance registration is required. Because the number of connections to WSU’s telephone conferencing system is limited, registrations will be accepted on a first come, first served basis. Registration fee for the series is $5.

Call WSU Extension in Davenport at 509-725-4171 for more information or to register or download a registration flier at http://livestocktopics.wsu.edu.

WSU Extension programs are offered without discrimination. For accommodation of special needs, contact Tom Platt, WSU Lincoln County Extension, at 509-725-4171.

Beef Demand Study Reveals Importance of Product Convenience, Nutrition, Safety 

A comprehensive study conducted by agricultural economists at K-State and Michigan State University (MSU) revealed areas in which the beef industry can concentrate its efforts to strengthen beef demand, despite a sagging global and U.S. economy.

The study showed that nutrition, safety and convenience remain important factors when it comes to shoppers’ attitudes toward buying beef, said James Mintert, agricultural economist with K-State Research and Extension. Price also has an effect, but the study found that modest price fluctuations have small discernable impacts on beef demand.

“A lot of what’s happened with the recent slowdown in demand is due to macroeconomics,” Mintert said. “Much of this is out of the (beef) industry’s control, but there are things the industry can work on to reinforce demand and prepare for a rebound when the economy starts to recover.”

Other collaborators on the study were agricultural economists Ted Schroeder of K-State and Glynn Tonsor of MSU. The study, designed to provide a comprehensive and updated assessment of factors influencing U.S. consumer demand for beef, was funded by the Cattlemen’s Beef Board and several state beef and cattlemen’s organizations.

Mintert, who is the agricultural economics state leader with K-State Research and Extension, presented the findings at the NCBA cattle industry convention in Phoenix in January.

Research has shown that although price is integral to attracting consumers to purchase beef, small price increases or declines by themselves have small impacts on beef consumption. Keeping that in mind, Schroeder said, the beef industry should focus on ensuring that consumers do not have non-price reasons to shift away from beef consumption.

Not surprisingly, the economist said, the study revealed that food safety recalls adversely impact domestic and foreign consumer demand for beef. Recalls have been on a “troubling upward trend” in recent years. In fact, beef food safety recalls jumped from 18 in 2006 to 38 in 2007. That rise alone contributed to a 2.6% drop in domestic retail beef demand, the study concluded.

Consumers are also influenced by health and nutrition information, and the study examined how articles in medical journals affect beef demand. For example, the number of medical journal articles published linking fat in the diet with cholesterol and heart disease nearly quadrupled from 1982 through 2004. Beef demand declined about 9% because of this influx of information linking fat in the diet to cholesterol and heart disease, according to the study.

Similarly, the 268% increase in the number of medical journal articles published noting the importance of zinc, iron, and protein and diet from 1982 to 2007 boosted beef demand by about 7%, while also increasing poultry demand about 13%.

In addition, the study found that the net (positive minus negative) number of articles promoting low carbohydrate diets jumped by 245% from 1998 to 2003 and then fell after 2003.

“The media frenzy supporting low carbohydrate diets helped boost beef demand by nearly 2% from 1998 through 2003,” according to the study´s final report.

“For the industry, the implications are clear,” Mintert said. “First, conduct research that helps identify positive impacts derived from beef consumption. Second, these findings need to be presented to health professionals, nutritionists and, especially, consumers. 

Furthermore, investing in the development of new production or processing technologies that enhance beef’s nutritional properties can be a source of future demand improvement.”

Convenience is another factor that researchers found key to beef demand. There are no direct measures of meat product preparation convenience at the industry level, so the study’s authors examined two indirect measures: female employment outside the home and food consumed away from home.

The study found that as consumer demand for products that are convenient to prepare increases, beef demand suffers, but poultry and pork benefit.

“That may be because of differences in the pace of new product introductions,” Mintert said. He cited a new products database search from 1997 to 2008 containing the words Convenient, Ease of Use or other time-saving claims that identified 5,633 new poultry products, but just 3,579 new beef products.

More information on the beef demand study is available on the web at http://www.agmanager.info; click on “Beef Demand Determinants Slide Show.”

— Release provided by K-State Research and Extension.

Beef Study Results Indicate Recent Demand Slowdown Linked to Economy

After a several-year resurgence that started in 1999, beef demand has slowed, thanks in part to a struggling economy both in the U.S. and abroad.

“A lot of what’s happened with the recent slowdown in demand is due to macroeconomics,” said James Mintert, agricultural economist at K-State Research and Extension and one of the authors of a new study on beef demand. “Much of this is out of the (beef) industry’s control, but there are things the industry can work on to reinforce demand.”

Other agricultural economists involved with the study were Ted Schroeder of K-State and Glynn Tonsor of MSU.

The study, designed to provide a comprehensive and updated assessment of factors influencing U.S. consumer demand for beef, was funded by the Cattlemen’s Beef Board and several state beef councils.

The research revealed that beef demand is responsive to changes in consumer expenditures on goods and services, Mintert said. On average, a 1% increase in U.S. consumer total expenditures results in a 0.9% increase in the quantity of beef demanded. The study indicated that, from 1982 through 2007, beef demand benefitted from increases in consumer incomes and from consumer willingness to increase consumption expenditures even more rapidly than income was increasing.

The weakness in the U.S. macroeconomic outlook for 2009 and the ensuing expected decline in per capita consumer income does not bode well for beef demand this year, he said.

“Moreover, the impact of weaker consumer income is expected to be compounded by consumers’ desire to increase savings in response to uncertainty and risk present in the financial and real estate markets,” Mintert said. “An increase in consumer savings means consumption expenditures will decline even more rapidly than income and, given the importance of consumer expenditures, a decline in U.S. retail beef demand is likely during 2009.” Mintert noted that, based upon the beef domestic retail demand index, U.S. consumer demand for beef declined about 4% during 2008.

The study indicated that it is unlikely that domestic beef demand will rebound until the U.S. economy strengthens and consumers regain enough confidence to spend more of their income.

“Since the beef industry can do little to change the industry-wide effect of the economy on beef demand, it is important to focus resources in areas where noticeable impacts are possible, such as focusing efforts on beef’s nutritional strengths, food safety and introduction of new products that are convenient to prepare,” Mintert said.

— Release provided by K-State Research and Extension.

— compiled by Mathew Elliott, assistant editor, Angus Productions Inc.