Chatham

High Cost Of Production, Fewer Beef Farmers Cause Meat Prices To Jump

The price of meat is going up across Canada.

Researchers at Dalhousie University estimate it will jump between 7% to 9% by the end of the year because of low inventories, particularly for cattle and hogs.

Louis Roesch, Essex and Kent director at the Ontario Federation of Agriculture, says beef farmers are producing less because the costs are too high.

"If you can't make a profit and you're going to lose your farm by continuing to produce at a loss, you have to cut your losses where you can," says Roesch.

He also says large grocery chains are buying less Canadian meat, because they can find it cheaper somewhere else.

Canada's annual food price report predicts fruit prices will rise as much as 5% and vegetables will jump by 4% while prices for dairy, eggs, bakery goods, and cereals are likely to drop between 1% and 3%.

Roesch says there are fewer beef farmers because they are not getting replaced when they retire.

"You have to remember the age of some of these farmers too, there's nobody to take it over. So, when they close out now they're done, they're not going back into cattle," Roesch says.

Roesch says people won't stop buying meat, they will just buy cheaper cuts.

"I don't find that people actually quit buying meat. They drop a grade of what they were purchasing before. So, if you were buying sirloin before, you're going to drop down to round roast or that type of thing. You just drop a grade," says Roesch.

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