With Victoria Day fast approaching, it’s time for many to think about firing up the grill for the first time this year.
But that can’t happen until the meat is bought – and this year, that purchase may come with a side order of sticker shock.
Across North America, beef prices are hitting or approaching all-time highs.
People in the industry blame it on a number of factors, including droughts in the U.S. and the lingering effects of the discovery of mad cow disease in Canada in 2003.
Additionally, it wasn’t that long ago that grain prices were at record highs.
As a result, some farmers decided it made more sense to sell the hay and reap the rewards than to use it to feed cattle – which led to some of the smallest cattle herds in decades, and in turn led to significant value increases for the remaining herds.
“They’ve been looking at it and saying ‘My cows are worth more than they’ve ever been worth; maybe it’s time for me to consider retirement,’” says Stewart Cressman.
Cressman, a New Dundee-area farmer, has stuck with beef through thick and thin.
While he’s happy with the price he can get for his cattle, he’s quick to point out that replacement animals have become more expensive as well – leaving him, like many farmers, with some tough decisions to make.
“We’re in rarified air,” he says.
“I’m sitting here and looking at my feedlot and saying ‘I can’t afford to be full.’”
At the Ontario Livestock Exchange in Waterloo, manager Larry Witzel says he’s seen a significant decline in the number of cattle being auctioned off.
“So far this year, we’re probably off 30, 40 per cent on volumes,” he says.
“We’re reaping the consequences of what all took place … in the last 10 to 12 years.”
Witzel says he hopes the high prices will entice other farmers to move into beef cattle, in the hopes of turning significant profits.
