Consumption Does Not Equal Demand

Contact: , 308-697-3486;

Date: Wednesday, October 16, 2013

A market research article in the checkoff's Summer 2013 Beef Issues Quarterly analyzes beef demand and the best demand indicator. Typically, demand focuses on a demand curve (as prices increase, consumers demand less) and a supply curve (as prices increase, suppliers make more goods available). In theory, the intersection of the supply and demand curve predicts the price that will clear the market.

# # #

The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.
# # #