Price of beef coming down
Previously record-high costs saw consumers seek alternatives
Beef prices have been at record highs lately but a decline is starting to be seen at grocery stores.
“People should be enjoying some savings but (beef prices) are still higher than they have been in the last few years, or previous to the last few years,” said Chad MacPherson, general manager of the Saskatchewan Stock Growers Association.
Last year at this time, steer calves were selling at $3.26 per pound at market; this year they’re selling at $2.03.
Grocery store prices have also dropped, with ground beef having topped out at $6 a pound. On Tuesday, some grocery stores in Regina were advertising it at just under $4 per pound.
“There’s always a lag period in between what’s happening in the market and what’s happening with live cattle prices,” he said.
“I think prices topped out on different cuts ... in between November and January of last year and then (had) a bit of a decline.”
Producers had been enjoying record high market prices following a severe downturn in the industry during the bovine spongiform encephalopathy (BSE) crisis in 2003, but the decline in prices is slow.
“Declines on the export side of things in terms of feeder cattle for both the fourth quarter and the first quarter of this year have resulted in more cattle for this summer market and big declines in terms of our fed cattle price where we established highs early in the year in January and having been on a downward trend,” said Dallas Roger, market analyst with Canfax.
With the record high beef prices consumers have changed their eating habits, switching to cheaper sources of protein.
A study completed at Dalhousie University recently showed that 37 per cent of Canadians are looking for new sources of protein as a result of higher beef prices.
“The trigger was clearly higher beef prices so for consumers with less means, for example, they’re starting to look at vegetable proteins, they’re looking at fish,” said Sylvain Charlebois, professor in food distribution and policy at Dalhousie University in Halifax.
The shift of consumer habits has factored into beef prices. Beef producers have been able to supply enough beef for consumers, making the prices fall. Plus, the price of fish has risen recently.
Charlebois said that grocery store chains have started to change what products they are stocking to go along with consumer habits. The chains are doing it subtly by offering more international products — diets abroad are often rich in vegetable proteins.
“Some people are starting to mix animal protein with vegetable protein so, for example, they may actually cook a meat loaf with beef but they would replace half of the required meat with lentils,” the former University of Regina business professor said.
In future, consumers will see beef prices continue to adjust, with supply and demand factors having levelled out.