Business
Beef Prices in Canada Reach Record Highs
Beef prices have reached record highs on grocery store shelves in Canada as many grocers and butchers prepare for the busiest time of year of the holiday season.
According to Statistics Canada, a kilogram of ground beef now costs an average of $13, up from $10 in 2020, and a sirloin steak now costs roughly $22, up from less than $16.
Joel Orlik, the proprietor of Wellington Butchery in Ottawa’s west end, told CTV News that he anticipates the increases and orders his chops ahead of time. Despite his desire not to scare away buyers, he knows the market’s current state.
“We charge what we think we have to charge, but we’re always cognisant of the fact that we’re also the community store,” he said.
Orlik considers Wellington Butchery, a fine craft butcher, but over the years, the price differential has been comparable to that of retail grocers.
“The food stores have been catching up with me on price. “When they sell something similar to our quality, they’re not far off,” Orlik stated.
The beef market has faced severe challenges, including mad cow disease 20 years ago and the COVID-19 pandemic, which forced cattle farmers to sell up most of their herds.
Sylvain Charlebois, a food distribution expert and Dalhousie University professor believes the rising prices are partly due to North American farmers selling their herds owing to rising feed costs. The price of a steer has risen by 64 percent since 2020, affecting grocers, butchers, and consumers alike.
Unfortunately, they’re likely going to rise even more over the next couple of years.” Charlebois said.
“They experienced a tremendous catastrophe with mad cow 20 years ago, and when prices rise, many people say, ‘Let’s sell now. Let’s go out and do something else. That’s exactly what is going on. This is why prices are so expensive. “Who can blame them?”
According to Charlebois, the size of Canadian herds has been constant since 1987. Such high levels have not been recorded in the United States since 1951.
“Because of droughts, feed costs went up, and when feed costs go up dramatically, cattle ranchers tend to sell off their herd,” according to Charlebois. He believes beef is so expensive around the holidays that people seek more affordable protein sources.
“I believe turkeys will be priced fairly this year, as we witnessed at Thanksgiving. In certain parts of Ontario, we saw turkey for $0.90 per pound. Charlebois spoke.
“Beef is perhaps one of the most volatile things at a supermarket. It has been like this for many years.”
Strong demand for steaks and ground beef in North America also drives up prices. Charlebois observes that if farmers do not reinvest in the market, prices will continue to grow over the next two to three years.
