Beef Industry Fights for Room at the Table

The U.S. beef industry is trying to fight recession-related woes by promoting new, cheaper cuts from less popular parts of the steer and pushing beef harder overseas. The industry's moves mirror those of restaurants, supermarkets and packaged-food companies seeking ways to entice budget-conscious consumers who are dining out less and looking for ways to economize at home. Making the situation even tougher, a new study this week by the National Cancer Institute concluded that eating too much red meat can shorten life spans. So far, though, beef sales in the U.S. are suffering largely because consumers aren't eating as much at restaurants. Beef sales to food-service establishments were down nearly 5% last year, according to figures from food-consulting firm Technomic Inc. Sales to supermarkets and other retail outlets rose 2% as consumers started cooking more at home. Historically, half of all beef sales in the U.S. go to the food-service industry, Mr. Doud says. But dining at casual chains is down, thanks in part to the recession, according to Knapp-Track, which follows sales at about 10,000 dining outlets. Generally, sales at fast-food chains like McDonald's Corp. haven't suffered as much. Shrinking demand is having ripple effects on the farm, too, where ranchers are confronting lower cattle prices. Feedlot operators have lost $4 billion since January 2008, mostly because of feed prices, which soared last year amid burgeoning global demand for grain, says Mr. Doud of the Cattleman's Beef Association...WSJ