USAGE AND VOLUMETRIC ASSESSMENT OF BEEF IN FOODSERVICE 2016 Edition Prepared for: December 2016 Project #17237
Every year since 2003, Technomic has conducted studies to investigate the usage of Beef and Chicken in the foodservice industry. In 2016, Technomic was again engaged to update the previous studies. Background andobjectives The primary objectives of this 2016 study edition were to: Determine the penetration of Beef usage in various foodservice segments. Provide an updated volumetric situation of the foodservice Beef market by major product categories, including estimated volume in pounds and dollars. Assess the foodservice market for a variety of Chicken products, including both penetration and volumetric statistics. Understand Beef and Chicken category usage trends, including volume trends, menu position and rationale for offering. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 2
Methodology summary 1 2 Program initiation meeting Questionnaire development 3 Top 250 chain operator headquarters internet survey 4 Unit level data gathering from foodservice operators 5 Initial analysis 6 Market size validation/finalization including interviews with 20 distributors (both broadliners and meat specialists) and 4 processors of proteins serving the foodservice industry 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 3
Methodology: Operator unit level quantitative respondent base (Step 4) Technomic used the following approach to gather information from non-chain restaurants and other segments. Prescreening: Non-chain and independent operators were recruited to participate in the survey via telephone. Operator Internal Data Gathering: Operators reviewed their actual invoices to obtain typical monthly volumes of relevant products. Reporting: Operators reported data back to Technomic. A total of 725 operators responded from various segments. Adding in the chain level respondents, a total of 760 operators participated in this research. The segments of Bars & Taverns, Recreation, Military, Corrections, and Continuous Care Retirement Centers were not surveyed for this 2016 research wave. 2015 data was used as a surrogate for 2016 numbers. Segment Restaurants & bars # Of respondents Full service restaurants (small chains/independents) 145 Limited service restaurants (small chains/independents) 130 Subtotal 275 Beyond restaurants Healthcare (hospital, long term care) 75 Lodging 75 Retailers (convenience stores, supermarket foodservice) 75 Business & industry 75 Colleges 75 Schools 75 Subtotal 450 Total 725 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 4
Market size estimation approach To develop market size estimates using volumetric data, Technomic used a build-up approach. Each operator interviewed provided their average monthly volume of each of the relevant products. In addition, these operators also provide Technomic information on their total food and non-alcoholic beverage purchases on an annual basis. Once all interviews were completed, Technomic was able to conduct ratio analyses on the sample to develop the initial market size estimates. An example of the methodology is provided for the Healthcare segment. The total monthly pounds of Sirloin Steak used in the sample of 75 Healthcare locations is 7,372. The total annual food & beverage purchases by the 75 locations in the sample is $94 million annually. Technomic tracking data on the foodservice industry shows that the total food and beverage purchases of the entire Healthcare segment of the industry is $8.35B. Therefore, our sample represents 1.1% of the total industry purchases. Applying the 1.1% number to our 7,372 pounds, this suggests that total Healthcare segment Sirloin Steak volume is 670,000 pounds monthly, or 8 million pounds annually. This same exercise was applied to all segments, formats and forms to develop the market size estimates. In addition, operators were asked to indicate if their usage of each product increased, decreased or stayed the same versus last year. If increased or decreased, they were asked to indicate by what percentage and what was the rationale for the increase or decrease. This provided additional data points from which to conduct triangulation analysis. Once operator research is completed, Technomic conducts interviews with distributors and protein suppliers to obtain further insights and solidify market size estimates. The approach is charted on the next page. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 5
Technomic sizing process Technomic employs the following steps in its market sizing process. It uses a triangulation approach to develop its numbers, obtaining feedback not just for operators, but from suppliers and distributors as well. Data obtained Unit level operators National accounts What is used? Formats? Usage change? Business size? Clean, tabulate, analyze data by segment Compare to previous report Develop rough market estimates Final sizing Confirm growth Obtain pricing data Obtain volume Supplier and distributor interviews 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 6
Category scope The following 38 categories are included in this study (34 Beef/4 Chicken). Pre-cut Beef steak Whole/subprimals/roasts Pre-cooked roast Beef All other Beef Chicken Chuck eye/delmonico 1116D, PS01 Denver steak/cut (underblade) 1116G Flank/skirt 1 193 (flank), 121C, 121D (skirt) Flat iron 114D, PS01 or 1114D, PS01 Hanger steak 6 140, 1140D Petite tender medallions/ portioned (teres major) 1114F Porterhouse/ t-bone 2 1173 (porterhouse); 1174 (tbone) Ranch steak/cut 1114E, PS01 Ribeye/rib/ribeye cap 1103 1112C (ribeye/rib); 112D 1112D (ribeye cap); Sirloin (top, butt, bottom, cap/coulotte) 1184 1185B Strip (top loin) 1179 1180B Tenderloin/filet (includes pre-cut for steaks) 1188 1190C Tri-tip 1 1185C, 1185D Other steak (round, cubed, chuck, other steaks) Brisket 120 120C 3 Chuck eye/underblade 5 116D 116E, 116G Chuck/shoulder (excluding petite tender, chuck eye, underblade) 113, 114C-E, 115, 116A, 116B, 116K Petite tender (teres major) 1 114F Rib, ribeye, prime rib or ribeye cap 107 112D excluding 109B Sirloin 184 185B Strip loin/top loin 6 175 180 Round 166A 171G Tenderloin roast 188 192 Pre-cooked roast Beef (whole muscle) Patties 6 Bulk 6 Ground Beef Preparations (meatloaf, meatballs, chili, lasagna, etc.) Ribs Back ribs 124 Boneless country-style ribs 1 1116D, PS02 Short ribs 123, 123B, 130, 130A All Beef hot dogs/brats/sausage Strips/cubes/shreds or shaved/philly Beef including lifter meat, blade meat or pectoral meal 4,7 109B (Blade meat); 115D (Pectoral meat) Specialty deli meats (pastrami, corned Beef, roast Beef) Other Beef (liver, offal, organ, and all other Beef not accounted for previously. Excludes veal) 7 Bone-in (wings, whole fryers, and parts) 6 Boneless Chicken (all forms) 6 Further processed Chicken (patties, nuggets, tenders, strips, breaded, formed and dices) 5 All other 6 Tri-tip 1 185D 1 New category breakout in 2011 2 Porterhouse/T-Bone combined into 1 category in 2011 3 New category in 2014 4 Strips/Cubes combined with Philly/Shaved and Shreds in 2014 5 Category redefined in 2014 6 New breakout category in 2015 7 Category redefined in 2015 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 7
Notes/clarifications The following notes and clarifications will assist in interpreting the results of this report. All volumetric pound estimates are subject to a range of +10%. Volume data shown is for 12 months ending September of the respective year. Dollar volumes shown are based on reported pricing in September of each respective year. Pricing reflects price paid by the foodservice operator (operator purchase level). Price data are reported by distributors. In 2015, the Beef market continued its inflationary trend until pricing started to fall in August/September. Since market value is based on pricing reported in September, the total dollar value of Beef market in 2015 may be understated. MM = millions. Min = minimal or less than 500,000 in annual pound volume. Numbers may not add due to rounding. In 2012, bars/taverns, retailers, corrections, military and continuous care retirement centers were not specifically researched. 2011 data are used as surrogates in these segments. In 2014 and 2016, bars/taverns, recreation, corrections, military and continuous care retirement centers were not specifically researched. 2013 and 2015 data are used as surrogates in these segments for these years respectively. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 8
II. KEY OBSERVATIONS, INTERPRETATIONS, IMPERATIVES AND RECOMMENDATIONS 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 9
Key observations and interpretations Observations Beef volume increased by 79 millions in 2016 to 7.816 billion pounds. Despite this increase, there was a substantial decline in dollar value of over $4.2 billion dollars. Insights Significant drops in commodity prices for Beef have driven down the overall Beef purchase value in foodservice. On average, Beef prices dropped 14% at the operator purchase level compared to last year. Year Foodservice Beef volume (MM lbs.) Change vs. previous year (MM lbs.) Foodservice Beef operator purchase dollars ($ MM) Change vs. previous year ($ MM) 2012 7,994 +139 32,945 +2,544 2013 8,072 +79 32,061-884 2014 7,920-152 34,974 +2,919 2015 7,737-183 32,877-2,097 2016 7,816 +79 28,598-4,279 Dollar value calculations based on September pricing for each representative year 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 10
Key observations and interpretations Observations Beef usage penetration is down slightly from 96% in 2015 to 94% in 2016. Insights Despite this slight decline overall, Beef volume increased in 2016. There is a slight increase in Roast (subprimal) and Ground Beef penetration in 2016 compared to 2015 % Operators menuing/using Beef cut 2016 2015 2014 2013 2012 Ground Beef 77% 75% 74% 72% 72% Steaks 41 42 48 47 47 Roasts (subprimal)* 38 36 40 45 45 Pre-cooked Roast Beef 21 20 29 25 25 Ribs 14 14 15 13 11 Overall Beef 94% 96% 96% 97% 96% *Category redefined in 2014 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 11
Key observations and interpretations Observations Ground Beef remains the largest share of Beef volume and dollars. Roasts and Pre-cut Steaks have increased in volume most substantially. All Beef cuts have decreased in value with ground Beef taking the largest hit. 1% Ground Beef 5.023 B 7% 11% 4% 1% 35% Ground Beef $10.094 B Pre-cut Steak $9.078 B 6% Roasts (subprimal) $5.359 B 7% Other Beef $1.961 B 19% 2016 Annual total 7.816 B lbs. 13% 2016 Annual total $28.598 B 32% 64% Pre-cut Steak 1.012 B Roasts (subprimal) 0.838 B Other Beef 0.505 B Pre-Cooked Roast Beef 0.321 B Ribs 0.117 B Pre-Cooked Roast Beef $1.639 B Ribs $0.466 B Insights Operators/consumers appear to be slowly returning to steaks and roasts as prices drop. Pounds change 2016 vs. 2015 = 79 million lbs. 48 39 Roasts* Pre-cut steak Dollar change 2016 vs. 2015 = $-4,297 million -$8 -$22 -$59 10 2 Pre-Cooked Roast Beef Ground Beef -$402-5 Ribs -$1,287-17 Other Beef -$2,502 Pre-Cooked Roast Beef Ribs Other Beef Roasts* Pre-cut Steak Ground Beef Dollar value calculations based on September pricing. *Sub-primal Note: Numbers may not add due to rounding. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 12
The volume decline of the foodservice Beef category which started in 2013, began to reverse itself in 2016. Despite increases in Beef volume, it appears that operators have not yet returned to offering higher end cuts as of yet. Rather, value-cut products have gained share in both Steaks and Roasts. Overall conclusions Market deflation has certainly helped firm up volume, but has had a negative impact on total market value. Despite Beef s gains, Chicken continues to gain volume share based on popularity of Wings and deflation in this market as well. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 13
III. MARKET OVERVIEW 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 14
Total protein market in foodservice The total foodservice protein market represents 25.744 billion pounds in 2016. Foodservice protein volume is up 335 million pounds over the past year and 855 million pounds since 2012. Beef increased by 79 million pounds (1% in 2016), but has declined over that past four year period by 178 million pounds total. Chicken and Pork both have gained significantly over the past 4 years (433 and 478 million pounds respectively). Chicken volume has been driven by the wing trend and pork has been driven by breakfast growth (bacon and breakfast sausage). Additionally, both have also benefitted from high Beef prices over the past few years. Segment 2016 2015 2014 2013 2012 MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. 2012 2016 Chicken 7,924 31 7,757 30 7,712 30 7,630 30 7,491 30 +433 Beef 7,816 30% 7,737 30% 7,920 31% 8,072 32% 7,994 32% -178 Pork 5,378 21 5,315 21 5,150 20 5,010 20 4,900 20 +478 Seafood 2,860 11 2,855 11 2,750 11 2,760 11 2,750 11 +110 Turkey 1,625 6 1,600 6 1,660 7 1,610 6 1,600 6 +25 Veal 73 <1 75 <1 80 <1 85 <1 89 <1-16 All Others* 68 <1 70 <1 67 <1 65 <1 65 <1 +3 Total 25,744 100% 25,409 100% 25,339 100% 25,232 100% 24,889 100% +855 *Game, Cornish hen, duck, buffalo, etc. Note: Numbers may not add due to rounding. Source: Technomic 2016 Technomic. Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 15
Beef volume by foodservice operator segment Beef volume continues to be highest in LSRs, where Ground Beef usage is very high. Looking at individual segments, Retailers experienced very strong growth in 2016 with an additional 48 million pounds while FSRs added 30 million pounds of Beef. The biggest decliner was the Business & Industry segment which lost 25 million pounds. Since 2012, however, Beef is down 178 million pounds total or 2% total. 2016 2015 2014 2013 2012 15-16 Change 12-16 Change Segment MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. % MM Lbs. % LSR 3,487 45% 3,492 45% 3,597 45% 3,591 44% 3,556 44% -5 0% -69-2% FSR 1,743 22% 1,713 22 1,761 22 1,799 22 1,807 23 30 2-64 -4 Bars/Taverns 1,2 108 2% 108 2 126 2 126 2 125 2 0 0-17 -14 Total Restaurants & Bars 5,338 69% 5,313 69% 5,484 69% 5,516 68% 5,488 69% 25 <1% -150-3% Lodging 363 5% 337 5% 360 4% 422 5% 372 5% 26 8% -9-2 Retail 1 256 2% 208 2 154 2 173 2 170 2 48 23 +86 51 Recreation 2 188 3% 188 3 199 3 199 2 228 3 0 0-40 -18 Healthcare 249 3% 236 3 226 3 233 3 233 3 13 6 +16 7 Colleges 335 4% 343 4 327 4 344 4 340 4-8 2-5 -1 Schools 466 6% 467 6 462 6 504 6 490 6-1 0-24 -5 Business & Industry 263 4% 288 4 324 4 295 4 310 4-25 -9-47 -15 Military 1,2 152 2% 152 2 186 2 186 2 164 2 0 0-12 -7 Corrections 1,2 46 1% 46 1 63 1 63 1 57 1 0 0-11 -19 CCRCs 1,2 159 2% 159 2 137 2 137 2 142 1 0 0 +17 12 Total Beyond Restaurants 2,478 31% 2,424 31% 2,436 31% 2,556 32% 2,506 31% 54 2% -28-1% Total 7,816 100% 7,737 100% 7,920 100% 8,072 100% 7,994 100% 79 1% -178-2% 1 Segment not researched in 2012. 2011 data used as surrogate for 2012 in this segment 2 Segment not researched in 2014 and 2016. 2013 and 2015 data used as surrogates respectively for this segment Numbers may not add due to rounding. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 16
2016 vs. 2015 change in Beef poundage (in lbs. millions) *Steaks **Roast Segment Pre-cut Steaks* Roasts (subprimal)** Pre-Cooked Filets $8.30-10.45 $6.15-7.70 $4.00-$5.32 Premium Mid-Tier Roast Beef $8.30-10.45: Porterhouse/T-Bone, Ribeye/Rib/Ribeye Cap, Strip $6.15-7.70: Denver Steak, Flat Iron, Petite Tender, Sirloin, Chuckeye/Delmonico, $4.55-6.25 Flank/Skirt, Ranch Cut, Tri-Tip, Hanger, Other Steak Premium: Prime Rib, Tenderloin, Strip/Top Loin Mid-Tier: Chuckeye/Underblade, Chuck/Shoulder, Round, Tri-Tip, Petite Tender, Brisket, Sirloin Roast Ground Beef LSR 0-1 +3 +5 +13 +10 +5-42 -3 +4 FSR +17-12 +2 0 +14 0 +3 +13 +3-10 Bars/Taverns 1 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total Restaurants & Bars +17-13 +5 +5 +28 +10 +8-29 0-6 Lodging +2 +1-1 +10 +3-1 +2 +8 +1 +3 Retailers -2-3 -4 +10 +4-1 +9 +34-2 0 Recreation 1 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Healthcare -1-1 -1 +8 +2 +3-2 +4-1 +1 Colleges -1 0-3 +9-3 -6 0 +4-3 -5 Schools 0 0 0 +2 +7 +2-2 -3-1 -7 Business & Industry -2 0-1 +5-1 -5-2 -11-3 -3 Military 1 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Corrections 1 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a CCRCs 1 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total Beyond Restaurants -4-3 -11 +43 +12-1 +2 +31-5 -10 Total +13-17 -6 +49 +39 +9 +10 +2 +5-17 ***All Other Beef, Hot Dogs/Brats/Sausage, Strips/Cubes/Shreds/Shaved, Specialty Deli Meats, All Other Beef Numbers may not add due to rounding. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 17 Ribs 1 Segment not researched 2016. 2015 data used as surrogates for this segment All Other Beef***
Beef cut pound and market value trends Overall Beef is up 1% in volume but down 13% in value. Deflation in the Beef market overall drives down market value of all Beef products. On a volume basis, Roasts, Pre-cut Steaks and Pre-Cooked Roast all have grown in 2016. Category Lbs. MM $MM 2016 2015 2014 2013 2012 '16 vs. 15 2016 2015 2014 2013 2012 '16 vs. 15 Ground Beef 5,022 5,020 5,093 5,123 5,102 0% $10,094 $12,596 $13,535 $11,826 $12,315-20.0% Pre-cut Steaks 1,012 973 1,106 1,160 1,142 4.0 9,078 10,365 11,429 11,124 11,520-2.6 Roasts (subprimal)* 838 790 745 742 725 6.1 5,359 5,761 5,782 5,159 5,244-7.0 Other Beef 505 522 472 534 539-3.2 1,961 2,020 1,738 1,732 1,738-2.9 Pre-Cooked Roast Beef 321 311 356 367 358 3.2 1,639 1,647 1,958 1,762 1,752-0.5 Ribs 117 122 148 146 128-4.0 466 488 533 467 376-4.5 Total 7,816 7,737 7,920 8,072 7,994 1.0% $28,598 $32,877 $34,974 $32,061 $32,945-13.0% Dollar value calculations based on September pricing for each representative year *Strip/Top Loin was added as a separate category in 2015, which may be artificially inflating volume in roasts, and deflating steak category volume in that year. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 18
2016 Pre-Cut Steak Summary Other Steaks gained 65 million pounds and $316 million in value in 2016. All of the other Pre-cut Steak cuts lost value in 2016, and only 4 others gained in poundage. Total traditional cuts held up well volume wise, while emerging cuts showed evidence of erosion in pounds. 2016 2015 2016 Change vs. 2015 Pre-cut Steak Cuts MM Lbs. $ MM MM Lbs. $ MM MM Lbs. $ MM Rib/Ribeye/Ribeye Cap 155 $1,621 153 $1,836 2 -$215 Filets 157 2,575 144 3,132 13-557 Flank/Skirt 117 622 128 800-11 -178 Strip/Top Loin 89 740 99 988-10 -248 Porterhouse/T-Bone 54 540 54 556 0-16 Total Traditional Cuts 572 $6,095 578 $7,312-6 -$1,214 Sirloin 214 $1,657 228 $1,882-14 -$225 Flat Iron 53 366 59 440-6 -74 Petite Tender Medallions 26 187 23 199 3-12 Hanger 19 76 24 109-5 -33 Tri-Tip 10 48 10 62-0 -14 Chuck Eye/Delmonico 11 88 9 99 2-11 Ranch Cut 6 30 7 39-1 -9 Denver Steak/Underblade 2 12 2 16 0-4 Total Emerging Cuts 341 $2,457 362 $2,846-21 -$389 Other Steaks 99 $524 34 $208 65 $316 Total 1,012 $9,078 973 $10,365 39 -$1,287 Dollar value calculations based on September pricing of respective year Numbers may not add due to rounding 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 19
2016 Roast (Subprimal) Summary Looking at Roasts specifically, Strip/Top Loin has gained the most volume and dollars in 2016, at 29 million pounds and $107 million respectively. Brisket and Sirloin Roast are the other Roast cuts that gained volume and value in 2016. 2016 2015 2016 Change vs. 2015 Roast (Subprimal) MM Lbs. $ MM MM Lbs. $ MM MM Lbs. $ MM Tenderloin 198 $2,081 192 $2,242 6 -$163 Rib, Ribeye, Prime Rib or Ribeye Cap 183 1,611 179 1,765 4-154 Chuck/Shoulder 94 292 105 408-11 -116 Round 97 290 98 381-1 -91 Total Traditional Cuts 572 $4,274 574 $4,796-2 -$524 Chuckeye/Underblade 22 $93 28 $145-6 -$52 Tri-Tip 15 57 13 63 2-6 Petite Tender (teres major) 10 37 10 44 0-7 Total Emerging Cuts 47 $185 51 $249-4 -$64 Brisket 73 $292 63 $222 10 $70 Strip Loin/Top Loin 94 400 65 293 29 107 Sirloin Roast 51 206 37 204 14 2 Other Roasts 218 $898 165 $719 53 $179 Total 838 $5,359 790 $5,759 +48 -$402 Dollar value calculations based on September of respective years Numbers may not add due to rounding 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 20
2016 Ground Beef, Pre-Cooked Roast Beef, Ribs, and Other Beef Summary Ground Beef Preparations gained 13 million pounds, and Pre-cooked Roast Beef volume rose by 10 million pounds. Ground Beef Patties & Bulk, the largest pound volume category tracked, was down by only 0.2% 2016 2015 2016 Change vs. 2015 Ground Beef MM Lbs. $ MM MM Lbs. $ MM MM Lbs. $ MM Patties & Bulk 4,825 $9,649 4,835 $12,087-10 -$2,437 Preparations 198 445 185 509 13-65 Total Ground Beef 5,023 $10,094 5,020 $12,596 2 -$2,502 Total Pre-Cooked Roast Beef 321 $1,639 311 $1,647 10 $11 Ribs Boneless Country-style 9 $36 12 $48-3 -$12 Back 15 60 15 60 0 0 Short 93 370 95 380-2 -10 Total Ribs 117 $466 122 $488-5 -$22 Other All Beef Hot Dogs/Brats 214 $615 228 $651-14 $-36 Strips/Cubes/Shaved/Shreds* 188 877 192 894-4 -17 Specialty Beef Deli Meats 79 393 78 388 0 5 All Other Beef 23 77 24 87-1 -10 Total Other 505 $1,961 522 $2,020-17 $-59 *Including pectoral, lifter and blade meat Numbers may not add due to rounding Dollar value calculations based on September pricing in respective years. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 21
Beef market volume and value In 2016, the Beef industry gained 1.0% of volume, but lost 13% of total market value. This discrepancy suggests overall deflation in the Beef market has averaged around 14% in 2016. In MM Lbs. In $MM* Change +1.0% +78 Change -1.9% -152 Change -2.3% -183 Change +1.0% +79 Change -2.7% -$884 Change +9.1% +$2,913 Change -6.0% -$2,097 Change -13.0% -$4,279 7,994 8,072 $34,974 7,920 $32,945 $32,061 $32,877 7,737 7,816 $28,598 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 *At the operator purchase, or distributor sales level. Dollar value calculations based on September pricing for each representative year. Source: Technomic, Inc. 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study 22
312-876-0004 foodinfo@technomic.com technomic.com 2016 Technomic Inc. Source: 2016 Usage and Volumetric Assessment of Beef in Foodservice Study