1
Beef vs. Chicken
The supply of beef has been gradually declining since 2007. In 2007 the supply of beef in the U.S. was 30.2 billion lbs and by 2014 supply was down to 28 billion lbs. The demand for beef has shifted as consumers are looking to alternative meat options such as chicken. The cost of chicken was down 3.5 percent in September 2014 from September 2013, and the cost of beef was up an astounding 17 percent from the previous year.
Consumers aren't only selecting chicken at the the supermarkets but at restaurants as well. Chipotle Mexican Grill noticed that more customers were choosing chicken items over their beef items when they raised their beef products by 9 percent and their chicken products by only 5 percent. With the rising cost of beef the demand for chicken is predicted to raise 3 percent in 2015.
The downward slop in beef supply comes form the rising cost of feed. Cows take an average of 16 to 18 months to be market ready while chickens are ready as soon as 2 months. Farmers are able to shell out chickens a lot quicker and recoup profits while cattle farmers have to invest more time and money on feed.
Consumers want to spend less and get more, until the high cost of feed comes down and the supply of beef levels out demand for chicken will continue to rise. Consumers don't skip the beef isle because they don't like beef, they buy more chicken because it more affordable.
Resources
Wong, Venessa. Another Year of the Chicken: U.S. Beef Supply Will Fall Again in 2015. (November 18, 2014) Retrieved from:
http://www.businessweek.com/articles/2014-11-18/us-beef-supply-will-fall-again-in-2015- chicken-demand-will-rise