Key facts
- Retail beef prices correlate strongly with consumer disposable income.
- The relationship between disposable income and retail beef prices has an R-squared of 0.93.
- Current retail beef prices are near the upper end of the historical price range.
AgResource Company reports that US retail beef prices are increasingly influenced by consumer disposable income rather than immediate supply-side factors. Analysis indicates a strong, long-term relationship between disposable income and retail beef prices, with a correlation coefficient (R-squared) of 0.93. Current retail beef prices are positioned near the upper limit of their historical range, reinforcing the significance of consumer income levels as the primary driver of beef pricing.