Canadian Cattle Ranchers Call On Government To Investigate Inflated Meat Prices
A group of cattle producers are calling foul on surging meat prices, arguing that there is a substantial “imbalance” between the costs consumers are paying for meat and the prices ranchers receive.
The Saskatchewan Stock Growers Association is calling on both the provincial and federal governments to look into what appears to be a discrepancy in pricing. The ranchers said that farms and feedlots have been operating at a loss due to a low supply of feed stemming from last year’s droughts, coupled with the surging costs of fuel due to global inflationary effects. However, the group argues that at the same time, meat packers and retailers have seen their profits surge over the past year.
According to the Stock Growers Association, slaughterhouses may be deliberately reducing the rate of production in an effort to retain high wholesale beef prices, allowing cattle supplies to accumulate on ranches. Latest data from Statistics Canada showed that food prices were up 8.8% from May 2021, with the price of beef alone surging by 11.2% year-over-year.
Information for this briefing was found via CTV News and Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
