Canada: Near future beef price outlook may be cloudy for producers

Published 2023년 6월 9일

Tridge summary

The beef market is experiencing unpredictable price fluctuations, raising concerns about a potential repeat of the 2015 price drop following a peak. This instability is largely due to the decline in the U.S. and Canadian cattle herds, aggravated by dry conditions in the central U.S. Plains. While demand for beef remains strong, high prices and the willingness of consumers to pay are key factors. Last year, per capita protein consumption in Canada increased, and international markets offered opportunities for Canadian beef. However, high beef prices, influenced by feed prices, and the import of cheaper meat from Brazil and India pose challenges. The dynamics of the beef market are complicated by the rise in pork production, which could potentially cut into beef sales.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Brenna Grant, executive-director of Canfax, describes the beef market outlook as if it is on a roller coaster ride. “Are we going to see a repeat of 2015” when prices plummeted after peaking at $2.50 a pound for calves?” she asked the Saskatchewan Stock Growers Association convention. “Will high prices be the cure for high prices?” That experience “was an anomaly.” Prices hit highs in the first half of that year only to fall by 20 per cent in the second half. Last year’s contraction of the cattle herd has been driving prices. The U.S. beef herd has declined nine per cent since 2019 and is forecast to drop 5.4 per cent this year. The central U.S. plains cattle country remains dry, driving prices through smaller supplies. “If we get rain and heifers are held back we may not see such supplies.” The Canadian herd is expected to continue declining, she said. On the demand side, much of beef price levels depends on “willingness to pay” by consumers. “Are consumers really looking to ...

Source: Moosejawtoday