Why? Because consumer preferences for beef are changing, according to a Rabobank International article, "Ground Beef Nation: The Effect of Changing Consumer Tastes and Preferences on the U.S. Cattle Industry."
Each beef carcass receives a grade of Prime, Choice, Select or Standard based on marbling and maturity. Our current beef production model is focused on raising cattle that reach the Choice or Prime grade used for steaks and other higher end cuts.
In reality, 62 percent of beef used in U.S. homes is in the ground form. Price is likely the driving factor, but preference also plays a role, as more people are choosing hamburger over other cuts in restaurants as well. In addition, ground beef is easy to use, and even those inexperienced in the kitchen can prepare it.
Beef, in general, is having a hard time keeping up with other proteins in terms of cost. Since 2000, composite chicken prices have risen 24 percent, and retail pork went up 41 percent, while beef jumped 72 percent.
At the same time, per-person beef consumption continues to slide. It peaked in the mid-1970s just below 95 pounds per year, but by 2008 it had dropped to 67 pounds. The economic recession sent beef on another downward spiral, to 54 pounds per person in 2013.
Current cattle rations and management styles are structured to support the approximately 30 percent of the carcass that is rib, loin and sirloin. As far as the rest of the carcass is concerned, meeting Choice or better is often irrelevant. To keep up with demand, high-end cuts from highly graded carcasses are frequently being used for ground beef.
According to Rabobank, to remain competitive beef production should become more carefully aligned with its intended end use.This means some animals would be raised to produce higher end cuts and others for ground beef. This could potentially be accomplished by making changes to calf selection, cattle management and feeding regimens.
