Shoppers might experience some sticker shock when they see the price of beef at their local grocery store.
“The prices are definitely a little higher than what they’ve been in the past,” admitted Jack Chaffe, a southwestern Ontario feedlot operator.
According to Statistics Canada, the average cost for a kilogram of ground beef is currently $13. Four years ago, it was selling for $10 a kilogram.
Sirloin steak, meanwhile, is now roughly $22 a kilogram – up from $6 in 2016.
“The pricing was just unbelievable,” said shopper Wayne MacLean. “I mean, you get three little pieces of steak and you’re paying, you know, $55 to $60.”
And it’s not just shoppers feeling burned.
Ontario farmers and butchers are facing their own uphill battle to stay in the game.
“Likely the biggest thing is the investment in feeder cattle and the feed part,” Chaffe explained. “A lot of capital tied up in our operation.”.
Farmers say the cost of feed, fuel and farming equipment have soared, leaving razor thin margins.
“At this point, we’re basically breaking even on most of our cattle,” added Chaffe. “If not, we’re maybe losing a little bit of money.”
Stemmler’s Meats, a butcher shop based out of Heidelberg, Ont., has noticed a change in the spending habits of shoppers.
“We see, at times, that people may purchase a less expensive kind of protein, or they may shop for price-based specials, so that’s just changing their buying patterns,” explained Stemmler’s Meats President Terry Stemmler.
Beef on display at Stemmler’s Meats in Heidelberg, Ont. (Hannah Schmidt/CTV News)
Experts say a mix of inflation and global demand is partly to blame for the recent price surge.
“We’ve seen an incredible demand for Canadian beef,” said Jamie Kerr, a market analyst with Canfax. “The consumer, they’re really looking to put beef on the center of their plates.”
Kerr also noted that climate change has been a huge factor.
“We have seen a decline in the Canadian cattle herd since 2020. It is drought related,” he said. “There is a smaller supply of beef and, in that instance, we do rely on imports.”
With beef being priced the way it is, consumers could turn to other alternatives during the holiday season.
“All food [pricing] is discouraging,” said shopper Robert Balcerzak. “You know what’s going to be taken off the list? Beef. It’s at its highest price. So everybody’s moving down a few notches.”