Consumers are noticing increases at the supermarket, as beef prices hit record highs.

Growing demand and a shrinking Canadian herd have pushed prices up by approximately 40 per cent in the last year, according to CanFax, the analytics division of the Canadian Cattlemen's Association.

CanFax analyst Brian Perillot said market conditions have created a "perfect storm," leading to the price jump. He said he expected the shrinking supplies to have an effect, but not of this magnitude.

"We didn't think we'd see this rapid of an increase in one year," he told CTV Calgary.

For the average consumer, the price of beef has jumped by about 23 per cent at the checkout.

Many shoppers in Calgary said they were feeling the pinch.

"It seems to have gotten considerably more expensive over the last year," one female shopper said.

A male shopper said he really didn't see any way of avoiding the extra cost. "What's the option? Not eating?" he said.

For cattle farmer Chris Israelson the increased price comes as a relief after years of narrow margins.

"Our feed prices are coming down, our field prices are also coming down, therefore these cows are essentially 30 per cent more profitable than they were a year ago," he said.

Israelson said it's been hard for all cattle farmers over the last ten years, as many producers were pushed out of the business due to uncertainty.

"We've all had to make some sacrifices. We've all had to work off-farm jobs," he said.

Shane Eustace is the production manager at Second to None Meats, a Calgary-based company that specializes in naturally-raised beef.

Eustace said, even though the company owns about half the cattle that ends up on store shelves, their prices have also risen by 15 to 20 per cent.

"We had a bit of a buffer zone because we were linked in directly with our ranchers. So that made it a little bit easier," he said.

As for Israelson, he's not holding his breath that the high prices will last forever. "In the back of your mind you realize the market can swing and can take you into a negative margin," he said.

With a report from CTV Calgary's Scott McLean