Live cattle cash prices have been in the 2016-version of free fall, and many producers have been challenged trying to understand why prices at the grocery stores have not followed suit. As demand concerns rise, speculation is that beef prices in Canada must eventually fall to increase sales at the meat counter.
In this week’s Canadian Cattle Buyer, Kevin Grier states that according to Statistics Canada Consumer Price Index (CPI) data, the retail price of beef declined 3.5% in the 3rd quarter this year compared to the same time last year. Food inflation was less than 1% and the inflation rate for all items was over 1%.
The report continued that consumer beef prices remain high, but the trend is lower. Prime rib averaged $14.29/lb in the third quarter compared to $10.64 at the end of 2013. Prime rib is off its record high that was hit in the second quarter this year. Regular ground beef averaged $5.57/lb in the third quarter compared to $4.31 at the end of 2013 and its peak of $5.87 in the last quarter of 2015.
Shaun Haney spoke with Kevin Grier, with Market Analysis and Consulting Inc., about the recent fall in beef prices and to get more insight on the data above.