File photo (image credit - CFJC Today)

By Michael Reeve

BEEF PRICES

While beef prices increase, B.C. ranchers see cattle prices fall

Jul 12, 2022 | 4:40 PM

KAMLOOPS — Stats Canada reports the price of beef has increased more than 11 per cent year over year. Those numbers resulted in the Saskatchewan Stock Growers Association calling for an investigation into what they called an imbalance between the price ranchers receive for cattle and the price being paid by consumers.

While the B.C. Cattleman’s Association has not yet formally called for an investigation, they told CFJC News the price discrepancy is effecting local ranchers.

“Government needs to step up and do some investigation into just exactly what is going on,” said B.C. Cattleman’s Association General Manager Kevin Boon.

The price that B.C. ranchers are receiving for their cattle hasn’t increased since 2016 — in fact, the prices have actually dropped. Yet, the price of beef at your local grocery store continues to go up.

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“The price in March 2016, a 600 pound steer was bringing about $2.30 a pound. Right now it’s down around $2.05. So our prices have actually dropped off over the past five, six years. Where as we’ve seen the price at the grocery store go up tremendously,” said Boon.

While Boon did note that some of the increases for consumers have been related to the COVID-19 pandemic, but the increases haven’t dropped back down. Inflation has also played a role.

“The price spread is huge. When we set and look at a fed and finished animal that is 1,400 pounds bringing a $1.60 to $1.70 a pound. And then you turn around and that same animal once it’s processed and in the grocery store is around $11 to $12 dollars a pound,” stated Boon.

The prices infer that somewhere along the line, somebody is taking home some extra dollars and not passing them down the line. But the stop isn’t at the butcher shops, where owners like Brody White are also feeling the pinch.

“We’ve noticed for sure this spring and summer, that those products of ground meat, hamburgers, sausages, hot dogs, smokies, those types of things, the sales are far more than normal. Because they are doing what I am doing as well and eating those products that aren’t as expensive,” said White.

By using a local supplier, and purchasing whole cattle, White is able to offer his customers unique cuts, which often comes at a lower cost.

“Do your research, find those smaller cuts, those weirder pieces of meet, that I find more interesting to eat and definitely easier on your pocket book,” added White.

As the price of labour and fuel are also on the rise, those costs of production are cutting into the ranchers’ margins even further.

“More of that cost of production is going into it. We are receiving less but on the other end they are charging a lot more. So it’s disappearing somewhere in-between,” said Boon.

Boon want’s to find the where the dollars are going because without a profitable business for the ranchers, the whole supply chain could break down.

“To the consumer, we feel bad. But we aren’t seeing it any better on our end, in fact we are seeing reduction in prices,” said Boon.