The price of beef has increased in recent years and this increase could continue in the coming year.
• Also read: Food prices: two good news for your wallet!
• Also read: His meat costs him half as much since he cuts it himself
This year, the high price is partly explained by the wheat harvests which “were quite average”.
“There have been droughts, there have been high productions. There is a demand for beef which has remained strong,” explains Pascal Thériault, agronomist and economist at McGill University, in an interview with LCN.
As it takes two years to mature an ox so that it is ready for slaughter, decisions made in 2022 now impact the current situation.
“In 2022, we had grain price increases, and then when we have a grain price increase, normally, American beef producers, what they do, well, they abandon their herd, they slaughter more animals. “animals because production costs are too high,” says Mr. Thériault.
According to the latter, producers who have reduced their herd are now trying to rebuild them, but interest rates and the price of grain are still very high.
“They will slow down the speed at which they will rebuild their herd, then with demand for beef which is still strong, that will inevitably put pressure on prices,” he believes.
When will prices drop?
The agronomist and economist does not believe the price of beef will decrease anytime soon.
“I believe that, considering what we experienced two years ago on grain prices, that we will continue to see the price of beef increase for at least six months, if not a year. “, he says.
The price of grain used to feed animals will be decisive in establishing the price of beef.
“We must remember that bringing an ox to maturity for slaughter takes two years, so what happens today, a decision taken today in beef production, will only have a final impact in 24 to 28 months », says Pascal Thériault.
Watch the full interview in the video above.
Related News :