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Beef consumption and prices were high in the 1980s, but prices fell by 30% in the 1990s. "The low point in the demand index occurred in 1998" (Beef Update, 2005), but prices once again started to rise steadily in early 2000. From 2002 to 2003 Americans consumed about 48 billion pounds of beef and the U.S. beef industry averaged about $68 billion in retail sales during the same period (Economic Research Service, 2005). Prior to 2004 the U.S. beef industry had averaged 2.5 billion pounds of beef in exports but one determinant caused the number to drop significantly to 551 million pounds in 2004.
In November 2003, prior to the discovery of bovine spongiform encephalopathy BSE and the subsequent announcement by the Department of Agriculture, the average monthly price of American choice beef was $4...
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