A panel of three Cargill representatives held a session during the National Cattlemen’s Beef Association (NCBA) Cattlemen’s College discussing current consumer trends and demands. In the session, each representative shared how consumer trends impact various stakeholders throughout the beef supply chain and how the industry can work together to deliver on these demands.
The panel stressed the importance of sustainability to the modern consumer. People want to know more about where their food is coming from and how producers are going to work with global challenges to produce a safe and sustainable product.
A 2018 study by Cargill surveyed 4,600 U.S. consumers and 2,400 Canadian consumers. These consumers had to be the primary shopper for protein in their household and could not be involved in media, or food or livestock production. The study determined there were four main factors that influenced beef buying: meat appearance; price; origin; and quality.
The study showed that consumers find beef a unique protein because it can be quick and easy to prepare, but also serve as a special meal for a celebration.
When selecting beef, appearance was the top concern to consumers. The color of the meat and its overall appearance was the most important factor to nine out of 10 consumers. Price followed closely behind, with eight out of 10 consumers putting emphasis on the cost before making a buying decision.
Origin was also shown to be a concern to consumers. Seven out of 10 consumers said produced in the U.S. was of importance to them and eight out of 10 consumers considered USDA Quality Grade when making a beef selection. However, the majority of consumers mistakenly believed USDA Choice to be of higher quality than USDA Prime.
The study showed that unconventional beef products (organic, all-natural, grass-fed) were associated with a higher level of quality and desired by consumers, but the added price was too big of a deterrent. Of respondents, 65 percent of consumers said they wanted no added hormones and 57 percent were concerned with antibiotic-free beef. Although there is a desire for unconventional products, the higher cost has kept the market relatively small.
The panel said while the average consumer is two generations removed from the farm, consumers are more connected to the farm than previously thought. An additional study produced by Cargill showed that the Millennial generation is two times more likely to know a farmer than in years prior.
Animal welfare as well as the environment have become larger concerns for consumers. The panel stressed that it is part of beef producers’ livelihoods to care for their animals and the environment, but their positive story is struggling to be told.
Just over half (52 percent) of Millennials have altered their diet in an attempt to move towards sustainability. However, there are some misconceptions about sustainability and consumers generally associate unconventional with sustainable, not realizing potential trade-offs. Consumers aren’t aware of the beef production cycle, which is why the panel stressed the importance of dialogue and transparency from beef producers.
The panel said the beef industry has to find a way to meet consumer demands while maintaining economic efficiency. Engaging with consumers and reinforcing the positive story of the beef industry is going to be critical to achieve this. — Anna Miller, WLJ correspondent
