If you’re a fan of Canadian beef, you’ve probably noticed that the juicy steak on your plate has you digging deeper into your pocket to pay for it these days.
Indeed, according to industry experts, the size of cattle herds in this country is at its lowest level in 40 years.
“There’s a shortage of cattle in the industry, so there’s a slight shortage that’s going to cause prices to go up,” said Brandon Ball, butcher and owner of Brant Lake Wagu in Calgary.
It’s a matter of “supply and demand,” Ball said. “That’s about it across the board.”
Describing its business as “a complete pasture-to-fork program — we own the animals, we feed them, we process them,” Ball’s Butchery offers everything from a $10 steak to $200.
Brandon Ball, owner of Brant Lake Wagu in Calgary, says the rising cost of beef is a simple case of supply struggling to meet demand.
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Ball said the livestock shortage is forcing butchers to use every part of the animal.
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“We find different muscles that have different uses, different tendernesses – from your typical rib eye, strip steak, filet mignon, we have unique cuts like picanha, bavete steak, denver steak, zabuton,” Ball said.
“There are a lot of steaks that customers have never tried before.”
Brandon Ball, owner of Brant Lake Wagu in Calgary, says despite rising costs, consumers are willing to pay a little more to put good quality Canadian beef on their plates.
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THE Canadian Livestock Association (Canfax) said there are a number of reasons for the decline in the size of Canadian cattle herds.
“Our cattle herd has been declining for several years. It’s actually the lowest it’s been since the mid-1980s,” said market analyst Jamie Kerr.
“A lot of these (reasons) are weather related and the negative margins (losses) have been seen for several years in a row, which has discouraged some growers and some have pulled out for these reasons,” Kerr explained.
He says the average age of beef producers is also getting older. “When a producer withdraws, the family does not want to take over and this leads to a certain hemorrhage of the industry.”
Kerr is confident that supply will eventually increase to better meet demand, but it could take a few years.
“I would say another year or two of reduction in the herd. We are starting to see the cycle enter a period of consolidationwhich means we could be at the bottom of the livestock inventory cycle and about to rise again,” Kerr added.
Jamie Kerr, market analyst at the Canadian Cattle Association, is confident the size of the country’s cattle herd will eventually increase to meet demand, but that could take 1 to 2 years.
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For consumers, this means no short-term relief from rising prices. “We’re still two to two and a half years away from an increase in beef production, just because of the lagged effect of the livestock reproductive system,” Kerr added.
Despite the higher prices, Kerr said, “Canadians are still looking to put Canadian beef on their plates.”
It’s something Ball also notices in his butcher shop: consumers are willing to pay a little more for good quality Canadian beef.
“They want good (quality),” Ball said. “More and more people are looking for local space. If they’re going to spend that money, they want to have the quality to match. »