Why is beef so expensive?

[Fradaburidi]

I know everything is expensive these days but beef seems to be over the top.

To me it seems that the same cows graze the same pastures even in the dead of winter with no extra work.
I must be wrong and it should be more than that to it so that's why I'm asking.

In any case, it became a delicacy.

[tallieho]

Yes i'll agree,it has become a delicacy in my house also.Farmers /Ranchers & us a re getting the short end of the stick.Meat packers like Cargill & Tyson charge or set prices,with no push back from the gov't.

[DRhunter]

Originally Posted by tallieho

Yes i'll agree,it has become a delicacy in my house also.Farmers /Ranchers & us a re getting the short end of the stick.Meat packers like Cargill & Tyson charge or set prices,with no push back from the gov't.

Although that was true for several years (especially during Covid) where the packers/grocers were making huge profits, I would say that the ranchers are now in a very strong position with record high calf/yearling prices. This year along with record high cattle prices, there is an outstanding hay crop in most of the western Canadian prairies and much lower grain prices that should push ranchers to the high end of profitability with reasonable feed/input costs.

As far as the reason driving the cost in the grocery store, this is lingering from the huge bump in prices during covid and will not likely go down any time soon. There has been a continuous decline in the North American cow herd, which has driven up calf prices and so far, consumer demand for the end beef product has been pretty inelastic to these higher prices.

The decline in the NA cow herd is a result of how lucrative farming (I know, I know... there is no money in farming) has been over the last two decades where pasture land has been tilled up for grain production. Even with shrinking profitability of farming, we still are not at a point where farmers are planting grain acres back to pasture so I would expect that the NA cow herd will not see significant growth in the very near future. Hopefully us cow calf producers can enjoy a multi year bull run rather than the steep incline and decline we saw in 2014/15.

DR

[59whiskers]

Over head cost is having impact on farmers and ranchers. Machinery, trucks, fuel, insurance,,etc. Try buying a pick up truck now.

[Trochu]

Beef is super expensive because cows are super expensive.

Based on last weeks market report, a 800 lb steer was $2.95 to 3.55/lb, so, going with the average, that's $2,600.00 for a live steer. If that's 500 lbs of meat, you're looking at $5.20/lb and you still have to butcher it, cut it up, pack it, transport it, and sell it, and all those guys want a piece of the pie.

For all intense and purposes, cattle prices have never been higher. I couldn't find a Canadian graph, but US$/lb going back to 1980 is shown below.

For the first time ever, I bought a steer this year. About 680 lbs, paid around $2,600 delivered. With barley at $4.00/bushel or whatever depressing price it's at, should be pretty heavy come 5th October.

[cowmanbob]

Originally Posted by DRhunter

Although that was true for several years (especially during Covid) where the packers/grocers were making huge profits, I would say that the ranchers are now in a very strong position with record high calf/yearling prices. This year along with record high cattle prices, there is an outstanding hay crop in most of the western Canadian prairies and much lower grain prices that should push ranchers to the high end of profitability with reasonable feed/input costs.

As far as the reason driving the cost in the grocery store, this is lingering from the huge bump in prices during covid and will not likely go down any time soon. There has been a continuous decline in the North American cow herd, which has driven up calf prices and so far, consumer demand for the end beef product has been pretty inelastic to these higher prices.

The decline in the NA cow herd is a result of how lucrative farming (I know, I know... there is no money in farming) has been over the last two decades where pasture land has been tilled up for grain production. Even with shrinking profitability of farming, we still are not at a point where farmers are planting grain acres back to pasture so I would expect that the NA cow herd will not see significant growth in the very near future. Hopefully us cow calf producers can enjoy a multi year bull run rather than the steep incline and decline we saw in 2014/15.

DR

Cow calf pairs have been in the 5500 dollar range, I sold a few steers the other day at 3300 dollars for a thousand pounder, lots of places had adequate rainfall. Definitely good times for the cow calf guys.

[W921]

Originally Posted by cowmanbob

Cow calf pairs have been in the 5500 dollar range, I sold a few steers the other day at 3300 dollars for a thousand pounder, lots of places had adequate rainfall. Definitely good times for the cow calf guys.

How old are the cows? Isn't it wrong time of year for this or was it a dispersal? How big a calf?

[jungleboy]

Originally Posted by Fradaburidi

I know everything is expensive these days but beef seems to be over the top.

To me it seems that the same cows graze the same pastures even in the dead of winter with no extra work.
I must be wrong and it should be more than that to it so that's why I'm asking.

In any case, it became a delicacy.

I’m not a farmer but I suspect its more of a supply chain issue. It used to be that everyone wanted their pound of flesh and inflation has allowed these people to extract 3 pounds of flesh at each stage of the operation.

On top of that, The Farmer and all those middlemen are paying a carbon tax on top of a carbon tax before it ever gets to the display case

[jungleboy]

Originally Posted by jungleboy

I’m not a farmer but I suspect its more of a supply chain issue. It used to be that everyone wanted their pound of flesh and inflation has allowed these people to extract 3 pounds of flesh at each stage of the operation.

On top of that, The Farmer and all those middlemen are paying a carbon tax on top of a carbon tax before it ever gets to the display case

Side note. I was at a small farm last week at a yard sale and they had pigs ,so I asked what they sell them for as I usually get a pig every fall. She said they were $1000 for a 300# pig not including kill. 😳 Last year, I paid $275 for a 230# pig killed and split in half.

[Trochu]

Originally Posted by jungleboy

Side note. I was at a small farm last week at a yard sale and they had pigs ,so I asked what they sell them for as I usually get a pig every fall. She said they were $1000 for a 300# pig not including kill. 😳 Last year, I paid $275 for a 230# pig killed and split in half.

I'm right around that $300/pig price. If I could sell them for $1k each, I might have to quite my day job!

[Dewey Cox]

Originally Posted by Fradaburidi

I know everything is expensive these days but beef seems to be over the top.

To me it seems that the same cows graze the same pastures even in the dead of winter with no extra work.
I must be wrong and it should be more than that to it so that's why I'm asking.

In any case, it became a delicacy.

Why am i paying the farmer for beef?
The cows do all the work.

[FishOutOfWater]

Originally Posted by Fradaburidi

I know everything is expensive these days but beef seems to be over the top...

When sparkle-socks brings over 2 million people into the country in a 3 year span, of which about 50% won't (key word) eat pork, what do you think is gonna happen ?

I ran into a local pig-farmer 2-3 months ago who thought the same, and commented that he was having a hard time getting rid of pigs at last years prices.

[Fradaburidi]

Originally Posted by FishOutOfWater

When sparkle-socks brings over 2 million people into the country in a 3 year span, of which about 50% won't (key word) eat pork, what do you think is gonna happen ?

I ran into a local pig-farmer 2-3 months ago who thought the same, and commented that he was having a hard time getting rid of pigs at last years prices.

The other 50% do eat pork. Actually there's nothing they won't eat if spiced right.

[muirsy]

Originally Posted by FishOutOfWater

When sparkle-socks brings over 2 million people into the country in a 3 year span, of which about 50% won't (key word) eat pork, what do you think is gonna happen ?

I ran into a local pig-farmer 2-3 months ago who thought the same, and commented that he was having a hard time getting rid of pigs at last years prices.

What percentage increase in the price of beef is caused specifically by immigrants who don't eat pork?

It must be staggering if it's the first reason that came to mind.

[FishOutOfWater]

Originally Posted by muirsy

What percentage increase in the price of beef is caused specifically by immigrants who don't eat pork?

It must be staggering if it's the first reason that came to mind.

I don't know, ask the ranchers... But it seems to be "part" of the increase.
And who said it was the 1st reason ? Everyone else covered the other (main) reason. Inflation.

[gunluvr]

It's just not possible that at today's prices in (grocery stores) that beef is selling in the quantities is was a few years ago. So as far as grocery stores go, the law of supply and demand should be forcing prices down, right? I suspect they simply don't have to sell as much to make a good profit at the grossly inflated prices.
Another thing, cheaper cuts of pork, for instance pork steak are now more expensive than some pork chops and pork loin. Must be because pork steaks began outselling pork chops, so the price got bumped up.

[LKILR]

Supply versus demand

I feed 8000 head daily

Many fat cows end up in china
They are willing to pay top dollar

Also those of you that think your buying beef right off of grass are sadly misinformed

It’s an expensive venture feeding calves until they reach proper butcher weight

Don’t get me started on the packing plants


Sent from my iPhone using Tapatalk

[Twisted Canuck]

[Dmay]

Originally Posted by Fradaburidi

To me it seems that the same cows graze the same pastures even in the dead of winter with no extra work.
I must be wrong

Yes, you are definitely wrong...or misinformed. That is not at all how beef production works in Alberta.

[W921]

Originally Posted by Fradaburidi

I know everything is expensive these days but beef seems to be over the top.

To me it seems that the same cows graze the same pastures even in the dead of winter with no extra work.
I must be wrong and it should be more than that to it so that's why I'm asking.

In any case, it became a delicacy.

Short answer is the price of fuel. Basically two packers in western Canada. Grocery stores screwing u over, inflation

It could be worse. You could be raising beef and not be able to afford to eat beef.

[Irina]

Because the head whips want us eating crickets…

[KGB]

Originally Posted by Irina

Because the head whips want us eating crickets…

I would also add that this is all Trump’s fault!

[Outbound]

I've seen a few posts where local ranchers are sellign 1/4, half and whole beef for $8/lb hanging weight, cut and wrap included. Doesn't seem like a bad deal, just gotta come up with $1000+ up front instead of spacing the meat purchases out over the year and likely spending more.

[Trochu]

Originally Posted by KGB

I would also add that this is all Trump’s fault!

We're in Canada, obviously Harper's fault!

[W921]

If u buy local beef from a producer or small meat shop it tastes way better than what you will buy retail. Walmart or especially Costco is cheaper but the quality is not there and I'm not sure why or what they do to it.
Fuel costs has a lot to do with prices. And it's not just from ranch trucks or chore tractors. That's small part of it. Fuel or oil prices drive up everything.
We only have two big packers in western and they own enough cattle of their own they can kind of manipulate prices.The boxed beef that they sell to grocery stores is another part of it. All these things are complicated and hard to explain in a few paragraphs. Boxed beef and government regulations really took out all the small butcher's and give multinationals control over everything.
In agriculture you can do everything right and go bankrupt. Takes crazy money to get such a small return.
Inflation has gone so crazy I'm not sure if a lot of people even know if they are making money or not. Example someone doing custom work. Inputs have gone up so much since covid you can be making twice as much and maybe losing twice as much and not knowing it yet. Example net wrap that was $100 a bale before covid is now $300. A bearing that use to cost $250 is now $900. Etc.

[KGB]

I don’t know what are you guys complaining about…. Today at my local Co Op they have a striploin steaks for $10/lb. Look at the store’s flyers and search for a deal. Independent store is selling whole tenderloin for $23/lb.!
Plus, you can find the Facebook page local to you where farmers are selling their beef. You can buy a 1/4, 1/2 or the whole beef. I don’t have a freezer capacity for a half but I usually buy ground beef and nice roasts directly from the farmers. Same goes for chickens and turkeys. Check your local Hutterite colonies…
There are deals to be found for sure!
P.S. as for the OP saying that the cows do all the work…. Yeah I don’t think so pal, you probably have never seen a farmer in a -40c weather going to feed his cattle or working his ass off during the calving season….

[Sporty]

Originally Posted by Fradaburidi

I know everything is expensive these days but beef seems to be over the top.

To me it seems that the same cows graze the same pastures even in the dead of winter with no extra work.
I must be wrong and it should be more than that to it so that's why I'm asking.

In any case, it became a delicacy.

A quick google search could answer the question for you. Here are a number of factors involved with beef prices in Canada. Droughts have made feed scarce, so ranchers have had to reduce their herds, which means less beef available. On top of that, supply chain issues, labor shortages, and higher fuel costs are driving prices even higher. Throw in inflation, a weaker Canadian dollar, and strong global demand, and it all adds up to the higher prices we're seeing at the store.

[Smokinyotes]

In put costs are crazy. I seeded down a hay field this spring. Not counting any fuel I have $152/acre in to it for just seed, fertilizer and floating. Cattle prices need to remain strong for the average farmer to keep operating. If everything remains the same price and calves drop to $1200 there will be a lot of guys calling it quits.

[The Cook]

I paid $5.00/lb to the rancher and $1.15/lb to the butcher. I always cruise the meat dept when shopping and have seen Two nicely marbled rib steaks for $70.00. Support Local, they might even let you hunt their land.

[W921]

Originally Posted by Sporty

A quick google search could answer the question for you. Here are a number of factors involved with beef prices in Canada. Droughts have made feed scarce, so ranchers have had to reduce their herds, which means less beef available. On top of that, supply chain issues, labor shortages, and higher fuel costs are driving prices even higher. Throw in inflation, a weaker Canadian dollar, and strong global demand, and it all adds up to the higher prices we're seeing at the store.

The money that gets made is not the producer. It's the packers and the grocers.
Sure there are rich guys with cattle but they either started rich or made their money with something else or married into or inherited a good start.