Beef prices up not only in grocery stores, but in independent shops, as well
Posted April 9, 2015 9:29 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – We told you yesterday about the rising cost of beef at your grocery store, but what about your favourite independent shop?
Like the big chains, they’re facing increasing costs, leading to significant price hikes.
Brody McDearmid is chief financial officer at Meridian Meats. He says prices at the company’s shops have been going up for about the last year and a half, but especially so over the last few months.
McDearmid says there’s been a 50 per cent price increase for striploin steaks and top sirloin since November.
“There are several factors. Probably one of the biggest ones that we’re aware of is drought conditions that happened in the US, which caused herd numbers to decrease. And then when you factor in gestation periods and prices that ranchers are getting for their cattle now, there is a low incentive to increase herd numbers. So they’re trying to push through cattle now and not waiting for the future, so cattle numbers aren’t increasing. With a decrease in the cattle numbers, obviously demand remains high — price goes up.”
“In addition, there’s been some significant global demand increase for beef in general — not just Canadian or US beef, but internationally, there’s an increased demand for beef. Countries, especially in China but other countries, are demanding more beef. That’s putting more strain on the price of beef, locally.”
McDearmid is expecting prices to keep going up throughout the summer, especially on prime cuts.
“We haven’t seen an increase in chicken or pork as a result of beef prices increasing, but I think our expectation throughout the summer is that people might choose different forms of protein,” he adds.
Bob Hopcott, who owns Hopcott Premium Meats in Pitt Meadows and raises the cattle himself, estimates about a 15 per cent hike over the last couple of months.
“In the last two years, the price of replacement cattle or feeder cattle, as we call them, has doubled to what we have to pay the rancher for the cattle.”
Hopcott says a lot of ranchers have gone out of business, so there’s a shortage of cattle in North America.
Both Hopcott and Meridian say customers have been understanding, and the amount of beef they’re selling — so far — hasn’t changed.
