BROWNSTOWN -- Justin Waddington looks down and kicks at the dirt along Progressive Road where he is upgrading an irrigation system to reduce labor costs.

The young cattle rancher is concerned about his industry.

Times are tough and producers in Yakima County -- annually home to the most cattle and calves in the state of Washington -- are looking everywhere for places to reduce costs to survive a cyclical downturn in beef prices.

For some, it may not help.

"If things don't turn around, there are people who aren't going to make it," said the 33-year-old Waddington who, with his father, works the ranch his father started some 20 years ago.

Jack Field, executive vice president of the Washington Cattlemen's Association, says producers are in survival mode.

"Folks are doing everything they can to be sure they are operating as lean as possible," he said. "They are cutting everything they can that is not absolutely essential."

While cutting corners provides some interim benefit, it is not a strategy that will last long-term.

The cost cuts are in response to a market in which prices paid to producers are off 25 percent from where they were two years ago, averaging less than 90 cents per pound.

*****

Reasons for the down market are numerous. Foremost among them, industry representatives say, is the overall bad economy.

Consumers are looking to save by eating out less, opting for cheaper cuts of beef and adding more hamburger to their menus. Demand for beef is expected to weaken this year as uncertainty over the economy continues.

Albertson's, the regional grocery chain now owned by Supervalu, has seen the change. Lilia Rodriguez, public affairs manager for Albertson's Retail West, said the retailer has seen more consumers at its meat counters buying more hamburger and cheaper cuts like chuck and round instead of premium cuts.

More meat is available to the market because dairy producers in some areas are culling herds in response to low milk prices.

Feed costs also have shot up. Premium alfalfa hay is at $200 per ton or higher, more than double the cost a few years ago.

The runup was caused by high prices for corn as more of the crop went to ethanol production, said Frank Hendrix , county livestock extension agent.

Waddington, vice president of the Yakima County Cattlemen's Association, is better off than some. He gives the credit to his dad, Tim, who has guided the growth of the family farm. They now operate 1,500 acres on the Wapato Irrigation Project that allows them to grow their own feed, maintain winter forage to reduce feeding costs, and sell some hay to dairy producers.

They have a herd of 500 beef cattle, among the larger cow-calf operations in the county.

The family ranch has grown from humble beginnings, when Tim Waddington left a life as a traveling evangelist to raise a growing family.

Justin Waddington said some factors suggest the beef market should be improving. Producers have reduced their herds to save costs. Beef cow numbers have declined for the third year in a row.

The inventory of mother cows is down nationwide, meaning fewer calves and a lower supply of beef to the market in the years ahead.

But a market boost isn't happening.

"To me, the economy is the big thing. People will be tightening their belts," Waddington said. "People still have to pay for electricity for their home and gas for their vehicle. The first place to cut is at the grocery store."

*****

The move to save money on beef and other protein foods is helping fast-food outlets that specialize in hamburgers. Retail grocers also are seeing more business as consumers eat out less often and buy more canned and packaged foods with coupons to stretch the food dollar.

Consumers are buying less of the higher-priced premium cuts of beef.

"We are talking about consumers trading down to ground beef and less expensive cuts," observe Patti Brumbach, executive director of the Washington State Beef Commission. The commission is funded by an assessment on cattle sold in the state to fund beef promotion, research and consumer education to support the $543 million beef industry, according to the commission Web site.

Brumbach said an industry consumer survey last summer as the recession was taking hold found that 61 percent of consumers were changing their food-buying habits. Of those, 48 percent said they are purchasing less expensive cuts of beef and ground beef.

"Consumers are making tough choices," Brumbach said.

As with consumers, producers also are facing uncertainty about what the future holds.

"No one knows when this will turn around," Waddington said.