Retail beef prices are at record-high levels as 2013 comes to a close, which, normally, might be a signal that demand for beef is headed (or will soon be) south. However, there's great encouragement in the latest beef demand index put together the Ag Econmics Department at Kansas State University. Each quarter, Kansas State's Glynn Tonsor re-calculates beef demand trends in the U.S. Tonsor points out that this index represents how much consumers are spending on beef, and not necessarily the volume of beef they are consuming. And the Demand Index is indicating that consumers are willing to spend more dollars to enjoy beef.
Dr. Tonsor says the index calculates beef demand for "choice" products and "all fresh" beef products. The "choice" calculation shows that beef demand was up 4.3% in the third quarter of this year versus one year ago- and this index has a solid uptrend of higher demand for ten of the last twelve quarters.
