When retail prices for any product reach record-high levels, the demand usually plummets quickly.
U.S. beef appears to be the exception to the basic rule of economics.
Retail grocery store prices for beef skyrocketed and show no signs of descending.
But demand hasn’t softened.
A new report from CoBank says the allure of beef, even at high prices, is likely the result of several factors currently shaping consumer buying behaviors.
The all-fresh retail beef prices surged by nine percent, hitting $8.90 per pound.
CoBank says improvements in beef quality and the increased availability of premium-grade cuts at retail have played a big role in driving demand.
The U.S. beef industry is producing a much higher quality of product today than it did 30 years ago.
Brian Earnst, lead animal protein analyst, says access to high-quality beef has never been better, and American consumers have developed a taste for it.
