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The price of steak in the barbecue season
Some butcher shop owners in Calgary were asked if steak prices go up during barbecue season. They replied that there is no doubt that the price of steak will rise.
Whether in the form of a juicy burger or a classic steak, beef is a staple of many Canadians' diets.
But veal sales are changing in large part because of back-to-back years of severe drought in major North American production areas. From dry southern Alberta to drought-stricken eastern Texas, ranchers have reduced their herds due to a lack of grass. Lack of supply of beef reduces the overall production of beef and increases its retail price.
Ranchers usually decide to sell a large number of calves and cows for slaughter rather than keep them for breeding. Ranchers decide to do so due to various factors, including high costs, reduced labor and high interest rates, as well as challenges associated with prolonged drought. In Canada, cattle herd sizes have been declining for years, a trend that continued last year amid severe drought in western Canada. The country's beef cattle population will decrease by 1.5 percent to 3.66 million animals in 2023, the lowest level since 1989.
Fewer cows means less beef production, which means less exports and higher prices for beef and veal in stores.
Even if the current drought cycle ends this year, cow numbers won't increase overnight. That's why, experts say, the new era of high veal prices is here to stay, at least for a while.
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