Herd size expected to shrink as ranchers sell off cattle
The price of steaks, roasts and other cuts of beef are expected to increase further because of drought conditions in Alberta, although it may take about a year before consumers feel the full bite on store shelves.
Retail beef prices hit record highs early this year and have continued to climb since then as the number of cattle in the Canada continues to dwindle. Now, drought in Alberta and Saskatchewan means ranchers struggling to feed their animals are choosing to sell some of their cattle at the auction market.
- Global demand for beef sends steak and hamburger prices sizzling
- Drought forces some Alberta cattle farmers to sell stock
At least nine different counties throughout Alberta have declared states of agricultural disaster due to harsh drought conditions. Many areas received less than 100 mm of rain between the start of April and early July, which is less than 50 per cent of normal rainfall levels. The hardest-hit areas received less than 50 millimetres of precipitation, according to Alberta Agriculture.
If you thought buying beef this summer was already expensive, prices could rise further with dry conditions in Alberta and Saskatchewan. (Dale Molnar/CBC)
Not only are pastures and hay crops in poor condition, but little feed is available for purchase.
In the short term, for consumers, the price of beef may actually fall slightly as ranchers reduce their herd size, but retail prices may jump further next year as the number of cattle in Canada will be even smaller.
“Over the long run, if the drought causes the cow herd to shrink even further, then the supply, of course, gets tighter,” said Greg Bowie, chair of the Alberta Beef Producers. “It is going to drive the price to a different level again.”
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