Beef prices have hit record highs across Canada, with ground beef, steaks, and roasts reaching unprecedented levels in grocery stores. Retail beef prices have generally climbed over the past few years, but recent increases have been particularly sharp, sparking concern among consumers and grocers as the holiday season approaches.
Jim Jackson, owner of Cut Rite Meats in Calgary, noted that he’s never seen prices this high in his years in the business. “Beef prices have been rising at a much higher rate compared to pork and chicken,” he said, adding that some customers are ordering less due to the elevated costs. Jackson explained that while he’s lowered his margins to avoid steep hikes for customers, rising cattle prices are making it challenging.
Cattle prices, which set the baseline for beef costs, have surged by up to 65% compared to their five-year average, according to Brenna Grant, executive director of the Calgary-based beef statistics firm Canfax. Meanwhile, Statistics Canada reports a 2.7% increase in food prices overall in the past year, with ground beef now averaging $13 per kilogram, up from $11.69 just a year ago. Factors driving the increase include rising global demand for protein, particularly in developing markets, and a shrinking cattle supply due to high production costs and drought conditions.
Ellen Goddard, an agricultural economist at the University of Alberta, pointed out that the slow turnaround time in beef production makes it difficult to quickly adjust supply to meet demand. “There’s a long biological lag,” she explained. Decisions made by cow-calf producers today will only impact beef supply in a few years.
Source: Swifteradio.com
