THE latest Australian foodservice tracking results suggests that the budget squeeze has lowered red meat usage across the foodservice sector, with consumers increasingly selecting smaller/cheaper menu items and lower cost outlets.

Foodservice operators, however, have also been more receptive of ways to ease margin pressure, whether through lower priced products, new menu items and generally more efficient ways of operating (Penfold Research).

These factors are expected to continue influencing the foodservice sector through the second half of 2008 and in 2009, and possibly become more significant, suggesting continued sales pressure in this segment for red meat.

MLA’s foodservice monitor results suggest that beef used by foodservice outlets was on a long term growth trend from 2004 to 2007. However, weekly usage fell 6per cent in May 2008 to 71.2/kg/outlet compared with the same period last year – also 10pc below November 2007 results. The fall was a result of lower usage in all commercial outlets surveyed, with the exception of fast food chains (Penfold Research).

Consumption of beef and veal by restaurants eased slightly to 55.7/kg/outlet in May 08 - 22pc lower year-on-year. Usage by hotels/motels fell to 91.5kg/outlet and usage by fast food independents eased to 35.9kg/outlet in May 2008 – 5pc and 15pc, respectively, below the same period in 2007.

Beef and veal usage by fast food chains in May 2008 increased 5pc on the same period last year, averaging 240.9kg/outlet. Over the same period, weekly poultry consumption increased to 103.5kg/outlet, another indication of the possible shift to lower cost alternatives.

The most popular first choice cut for beef was ‘scotch fillet and cube roll’ (11pc) followed by porterhouse/sirloin (10pc) and ‘rump’ (6pc) – all retaining the same ranking as the previous survey.

Lamb usage declined for the second consecutive survey period, declining 13pc compared with November 2007 tracking and 30pc year-on-year, to 26.8kg/outlet per week. Lamb results tend to fluctuate from survey to survey. Only 52pc of respondents purchased lamb.

For lamb, the three most popular first choice cuts were ‘leg boneless’ (17pc), ‘rack’ (10pc) and ‘cutlets’ (9pc).