Per-capita consumption of chicken has increased dramatically. Low prices for chicken products have grabbed a bigger share of the market and have taken the market away from beef. Figure 4 says that this statement is wrong. During the 1980's and 1990's chicken prices increased relative to the price of beef. Note the upward trend in the ratio that is formed by dividing the retail price for composite chicken cuts by the retail price for Choice beef.
Consumers react to changes in relative prices.
The impact of changing tastes and preferences is obvious. You will buy more of a product if your preference for this product is increasing. Changes in consumer tastes and preferences have been the long-term factor affecting beef demand for the last twenty plus years. Consumers through their dollars spent at the grocery store have told the beef industry that they do not like the fresh beef that we are offering. Over fifty percent of the beef we eat in the U.S. is consumed as ground beef.