Beef prices could start falling by summer's end
No beef relief expected early in grilling season
Barbecue fans hoping for lower beef prices as the grilling season begins are not likely to see any relief until later in the summer, says an industry analyst.
Brian Perillat of CanFax, the market analysis division of the Canadian Cattlemen's Association, said there is more supply on the market now, with cattle producers in the U.S. starting to build up their herds. As a consequence prices to cattle producers have started to drop, but there's usually a delay when it comes to that filtering down to consumers.
Perillat said there won't be much change in prices in the coming weeks, even as grocery stores start pushing the grilling season.
"Consumers are likely going to start to see a lot more featuring of beef, you know, ground beef that will be on sale," he said.
"Some of these middle cuts and steaks that we haven't see a lot of featuring of because they've been so expensive, and they've been on the back page of flyers. I think we're going to see a lot more of that front and centre."
It will probably be late in the summer before consumers see beef prices drop.
Getting away from commodity pricing
Brian Morrison, chair of the Cattle Producers Association of P.E.I., said farmers on the Island are getting about $1.30 per kilogram less now than they were at this time last year, which he described as a significant blow.
"With any commodity price, price system, when things happen other places in the world it impacts here," said Morrison.
"That's why our organization has been working very hard on branded products and niche markets, that we hope to be able to grow those businesses, and get out of the commodity price business."
Morrison said with prices to them dropping the success of the Burger Love campaign in April was especially welcome this year.
with files from Maggie Brown
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