U.S. Meat Industry Gets A Boost From College Football

So said Kansas State University livestock economist Glynn Tonsor, PhD. “It’s possible,” he reported earlier this month, noting that consumer’s demand for proteins – beef, chicken and pork – is holding steady in large part due to a surge in the food service industry. “The demand for dinner meals away from home was up from July to August,” Tonsor said, while demand for grocery store retail meat was down in August.

Prior to August, food service purchases (largely recognized as purchases away from home) represented a weakness in the U.S. meat market, but August’s figures indicate an increase in demand for lunch and dinner. “Foot traffic is up in restaurants,” said Tonsor, “and the trend was particularly strong in southern states like Florida and Texas.” He hopes the increase in demand for proteins eaten away from home offsets what was a little bit of a pull-back in retail demand.

Dr. Tonsor said he was joking about the football connection with America’s meat industry, during his weekly podcast on Agriculture Today.  “But that’s possibly what is going on here. It’s said that in the SEC (Southeast Conference), celebrations start way before Saturday. I think people are having many more evening meals out; plus there are other dynamics, such as the population is growing everywhere, especially in those southern states.”

Dr. Tonsor reported that consumer’s purchases at merchandisers and club stores also rose in August, a possible response to inflation. This is an indication that folks are shifting where they buy protein, and probably buying a bigger volume.  “They may have a more expensive trip to the store,” he said, “but I think they’re finding ways to get the price per pound lower by buying larger quantities, then taking it home and cutting it up.”