Joined: Aug 2010
Posts: 4956
Beef prices
3/31/2016 at 7:15 AM
When it comes to the high price of beef I have very mixed feelings. When you're in a supermarket and see people look at beef and then walk away you realize that it has become a product that is beyond a lot of people's budgets, and that just doesn't seem right. Then there is the other side of me that thinks that maybe people deserve not to be able to be able to afford to eat beef. My logic for this feeling might be considered flawed, but when I think back to when we had the BSE crisis and think of how little help the cattle industry received, especially the cow calf sector, I think serves the consumer right. The public was told that producers were being paid a low price because the boarder was closed and there was a surplus of beef so packing houses could not pay a high price for cattle. Yes the boarder was closed for export of live cattle and yet within three months meat from the large packing houses was crossing the boarder once again, and yet the story persisted, too much cattle not enough market. Funny how the packing houses doubled their capacity and expanded their facilities during this crisis, and not only that, but the federal government supplemented them on by products through the whole crisis and well beyond. The packing house industry destroyed the cow calf industry and now we are seeing the results.
An interesting point is they never learned, they are back at it again, inventories of frozen beef in the US are at record highs, that means there is lots of beef around and yet pices to the consumer are very high, profits to packing houses on individual carcasses are also near record highs and when you look at boxed beef prices and compare them to the retail prices you realize that retailers are also making a lot of money on beef.
Last year I had an ebrandon member get in contact with me about buying beef, the process took a while, but in the end she managed to purchase a half through Tendercuts in brandon Brandon, and when all was said and done I think that the price that she paid was around the $5.50 level for the meat, in other words $5.50 for regular grind hamburger. But also $5.50 for steaks and roasts or stew beef, and this was at a time when regular hamburger was well over $6.00 through retail outlets
People do at times get ripped off, carcass prices last year at this time where $3.28 per lb, today they are down in the level of $2.82 per lb to the producer, these prices are Ontario of Alberta based, we get less here.
Final thought, the federal government looked into the packing industry and what they did during the crisis and found that the industry had done no wrong, for some reason I believe that the people who did that investigation are still able to purchase beef and not even give it a second thought.