2024 Mid-Year Update from NCBA CEO, Colin Woodall (Op-Ed)

Colin Woodall - CEO, NCBA (A contractor to the National Beef Checkoff)

With summer grilling season in full swing, the consumer is making it clear they love beef. For quite some time we’ve been wondering what price point drives significant abandonment of beef for cheaper proteins. Each time we think we think we might be getting close, the consumer shows us they want more of our product, even at a higher price. For the spring months, CattleFax reported that U.S. retail beef demand was well above the demand we saw during the same time frame in 2023, and only slightly below 2022, which delivered some of the highest demand levels we had experienced in thirty years.   

The overall quality of the beef we are producing is helping to drive the consumer’s willingness to pay today’s beef prices. Consumers are able to consistently find prime and choice-graded beef in the retail meat case, and that results in a more satisfying beef-eating experience. The quality of the beef we enjoy today is very different from beef in the 80’s and 90’s.   

Over the past several decades, we’ve made tremendous improvements in the way we produce beef. Producers have focused on improving their herd genetics and using tools such as expected progeny difference (EPDs) in order to improve the quality of their cattle and the resulting beef. Cattle production practices have adapted and changed to reflect the realization that the way we handle and care for cattle also impacts the underlying quality of the beef. As such, beef cattle production doesn’t look like it did a decade ago, and we are reaping the benefits with strong demand.   

Fun is another key component to our strong beef demand, and summer grilling season perfectly illustrates that. Americans get excited about pulling out their grills and smokers and cooking beef meals for their family and friends. Beef owns the summer, and this year we are partnering with Little League baseball to promote beef as the “Perfect Home Plate.” This partnership will allow us to develop a new generation of beef eaters who can appreciate a hamburger after the game or a weeknight beef meal at home.   

Now, let’s get back to prices, supply, and demand. When will we see the domestic cattle herd begin to expand? With great prices for cattle, the market is telling us to expand. The high demand we’ve been discussing is a signal for expansion. The thing we are missing is the promise of consistent rain and moisture. The current drought monitor is the best it’s been for many years at this point in the summer, but it is based on the ample spring rains we received. The weather pattern has since shifted to a La Niña pattern which typically results in dry conditions for much of the land cattle are raised on. Concern about below-average moisture for the rest of the summer and into the fall and winter is why producers are hesitating to grow their herds. We want to expand. The market is telling us to expand. However, we need a wetter weather pattern to make it all happen. 

Thanks for all you do to promote our product and help the consumer have fun with beef. Our team stands ready to help with all your beef marketing needs.