Canada: Outlook for beef prices solid, hogs good but not great

Published 2023년 2월 25일

Tridge summary

The Canadian beef industry outlook is positive with continuing price growth for cattle and hogs, despite challenges such as declining cattle herds, feed costs, and global meat demand in a slowing economy. Canada exports about 45% of its beef production, primarily to the United States. The U.S. cattle herd is at a 60-year low, and a widespread drought is expected to reduce the herd by four percent this year. Feed costs are expected to be a challenge for feedlots, although Manitoba and Saskatchewan may have cheaper local supplies. Beef consumption in North America is expected to decrease this year, with Canada experiencing a 1.2% decrease and the U.S. experiencing a five% decrease. However, some beef exports to countries like China saw significant increases last year.

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

Original content

The outlook for Canadian beef producers remains strong for now with even stronger days in future years. “Prices continue the last two year’s growth trend for cattle and hogs,” Farm Credit Canada economics editor Jane Roberts noted in the FCC outlook for 2023. Trends affecting prices range from continuing cattle herd declines to feed costs to global meat demand in a slowing economy. Canada exports about 45 per cent of its beef production. Declining cattle herds increase short-term production as herds are sold off but will benefit prices in the long run. The United States cattle herd hasn’t been this low since the 1960s. Widespread drought is expected to cut the herd by four per cent this year. The Canadian cattle herd has been shrinking for years. New estimates will be available soon. Feedlots will find feed costs challenging but Manitoba and Saskatchewan will be better off with cheaper local supplies. Roberts estimates Alberta feed barley costs of $410 a tonne, down from $435 last ...

Source: Moosejawtoday