Agricultural News
Dr. Derrell Peel says Beef Demand Formula is Not a Simple Equation
Wed, 04 Mar 2020 09:48:11 CST
On today's Beef Buzz, Farm Director Ron Hays talks with Dr. Derrell Peel, OSU Livestock Economist, about Dr. Peel's long-time study of consumer beef demand.
Dr. Peel said it is not as simple as we would like to think it is.
Economists have probably tried to make it simpler than it is, Peel said.
Beef is a complex mix of hundreds of individual items. When consumers decide to buy a specific beef product, it is often influenced by another beef product, Peel said.
"We really don't have a good understanding of why that is," Peel said.
The OSU scientist attributes much of the issue to the fact thousands of individual beef products come from a single beef carcass.
This is a very complex mix of products, and the consumer must make many decisions about a specific choice, Peel said.
On the bright side, having thousands of different products creates the opportunity for new market opportunities, Peel said.
The bottom line is we should not try to make beef demand a simple equation.
Click on the LISTEN BAR below to hear the complete interview with Dr. Peel as he talks with Ron Hays.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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