As summertime and the Calgary Stampede have more people reaching for steaks, brisket and burgers, the price tag for beef is on the rise once again. Beef prices rose 2.2 per cent in May from the previous month. Statistics Canada says that’s a 13 per cent increase from this time last year and 63 per cent higher than prices five years ago. One hungry guest at Calgary Stampede said a beef brisket and rib platter was worth the splurge. “This cost $55 dollars. Everything costs more on the grounds, but it’s worth it for once a year, (Stampede) experience,” said Calgarian Helen Bird. “Gotta love Alberta beef.” She’s not alone. Despite the beefy cost, Canadians aren’t cutting it off the menu. “Last year Canadians consumed slightly more beef than the year before even though prices were up,” said Michael von Massow professor of food, agricultural and resource economics at the University of Guelph. “We’re eating more ground beef and fewer striploin.” The high prices come from increased demand at a time when supply has shrunk. Many Canadian ranchers chose not to keep as many cattle during recent drought years which made feed expensive, on top of other rising costs. John Lee of Chico Ranches in Rocky View County is one of those ranchers. He says his operation has experienced four years of drought, while has prompted many in the area to trim down their herds. “In the past three years, some (ranchers) went from 1,000 cows and knocked out 200,” he said. “Then (there was) still drought, so then knocked out another 200 cows from production,” he said. Many other ranchers have started to add heifers again, but it takes time to build a herd back up until they are old enough to have calves. Canadian herds are growing for the first time in years, but it’s a slow process and will take a while to feel the impact. “We’re a little ways out from sustained price relief at the grocery store but we are definitely moving in the right direction,” said Jamie Kerr, who is a beef industry analyst with Canfax. But until then, consumers have to fork out a bit more for their beef. Aren Hansen with Handmade Burgers said vendors can’t afford to shoulder all the price increases. “(It’s) a raise of about 10 per cent in costs, so of course cost (increases) have to follow,” he said. “There’s no way anyone is going to make no money doing what we do.” But still, Hansen said people are willing to pay a bit more for quality. “Everybody wants Alberta beef. Everybody wants to keep eating good quality food and that’s what we are here to provide,” he added. The number of cattle in Canada increased 2.5 per cent compared to the previous year. That means there’s about 270,000 more cattle, but it will take time for more calves to be born and about 18 to 24 months until they are ready to go to market. Experts expect prices will start coming down a bit later this year.
