According to data from the U.S. Department of Agriculture (USDA), Americans will eat an estimated 54.3 pounds of red meat this year. It’s an increase of almost half a pound more per person than in 2015 and the first increase in a decade, according to a report by Bloomberg.
Years of drought in the South and Southwest caused U.S. cattle supplies to drop to historic lows, and beef prices surged due to the shortage.
According to analysts, increased beef production is contributing to the rise in consumption. USDA numbers show herds at a five-year high since ranchers have been rebuilding herds and raising more cattle.
“Suddenly, there is this extra supply of meat. You’re going to have to somehow consume all of it,” Altin Kalo, an analyst at Steiner Consulting Group, told Bloomberg.
The increase in cattle is driving beef prices down. In February, a pound of ground beef retailed for $4.38, a 7 percent drop from a year ago, according to data from the Bureau of Labor Statistics.
Protein-based diets, such as Paleo, that eliminated grains and sugar are also driving up the demand for more beef.
Restaurant chains, including Chili’s and Wendy’s, are using the lower beef prices to attract consumers with discounts, special promotions and menu item deals. And these promotions are fueling beef sales.
In October, Wendy’s started a 4-for-$4 promotion, which includes a cheeseburger and has seen an increase of 11 million more customers in one of its restaurants in the fourth quarter.
Chili’s has added a new line of less-expensive steaks, which is part of its 2-for-$20 dinners.
“Beef is going to continue to be a big part of Americans’ diets,” Edithann Ramey, Chili’s vice president of marketing, told Bloomberg.