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Beef prices begin sudden fall from record highs

From the CBC

The boom market for beef is fading in Canada after record prices last year, but people will have to wait for costs to tumble in grocery stores.

The cattle industry has experienced a sudden drop in prices, forcing ranchers to adjust their expectations for the year.

“We had an incredible run. We doubled our prices in three years for calves, for example,” said Brian Perillat, a senior analyst with CanFax, a cattle market research firm. “In the last few months, we’ve seen prices drop 15 to 20 per cent from the high.”

Experts say the price spike was too extreme a reaction as beef supplies tightened.

Steaks, roasts and other cuts of beef are still fetching a premium price in the meat department of grocery stores, although that should change. Usually it takes three to six months before changes to cattle prices affect retail prices.

At the retail level, the average price for one kilogram of round steak was $19.32 in October and fell to $18.64 by December. Ground beef was $13.23 and dropped to $12.80 over the same period, according to Statistics Canada.

Read the full article here.

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