While many Canadians are itching to fire up the grill after a long, cold winter, they may be in for an unpleasant surprise, as beef prices throughout North America have hit a record-high.
Beef prices in Canada are expected to jump 4 to 6 per cent this year, which experts attribute to drought and high feed costs south of the border that have left farmers with some of the smallest herds in decades.
"A couple of years ago there was a drought in the Midwest and at the time producers just got rid of their herds," Sylvain Charlebois, a marketing and consumer studies professor at the University of Guelph, told CTVNews.ca on Thursday. "Instead of paying more for feed, they just got rid of their herds and they went to slaughter prematurely."
Charlebois said it takes a few years for cattle inventory to be restored. Meanwhile, the global demand for beef, particularly in Asia, has jumped, putting more upward pressure on the North American beef market.
But if you're planning on swapping steaks with pork chops in hopes of seeing some savings at the grill, you may want to think again, Charlebois said.
A deadly pig virus that killed millions of piglets in the U.S. before making its way into Canada and Mexico has caused the price of pork to jump by 50 per cent in some U.S. states.
Some experts are predicting the same price hike in Canada, but Charlebois noted that more Americans are buying less Canadian livestock, which is affecting demand in Canada and could keep prices from jumping significantly.
There’s yet another complicating factor that could add to your barbecue bill.
"We've just had a very tough winter," Charlebois said. "Consumers are just drooling all over their barbecue right now. They're just waiting for that first steak and retailers know that.”
Charlebois said the price hike is not just limited to this year, as once food prices increase, they typically don't come down.
"If we are to see an increase this spring, it's likely going to last," he said.
Charlebois said over the last three decades, Canadians have "lost track" of the real price of food.
He said more efficient agriculture practices and cheap energy to power greenhouses have kept food prices in Canada among the lowest worldwide.
"In actuality, in Canada, we've had access to cheap food for a long time," he said. "I suspect, particularly when it comes to protein with pork and beef, those two industries are just going to catch up."
His advice to those looking to keep their grocery bills down is simple: buy a bigger freezer.
"Buy some beef buy now and stock up, before prices go up."
Or, another option is to consider some changes to your traditional barbecue spread – something more along the lines of chicken burgers and fish kabobs.
Charlebois said the cost of seafood, fish and poultry is expected to remain stable.
