Global tensions, rising costs take centre stage at Alberta agriculture summit

Alberta's agricultural industry is feeling optimistic for lower cattle prices as China starts accepting Alberta beef.

The cost to raise cattle is going up and so is the price of beef at the grocery store, but Alberta’s agricultural industry is feeling optimistic.

China is accepting Alberta beef again, and more market access could mean lower costs at home.

Beef prices have soared at the grocery store — up 14 per cent in the last year, according to Statistics Canada.

“The whole world that can afford it seems to really enjoy beef,” says Leighton Kolk, owner and CEO of Kolk Farms.

But demand remains, and it comes as livestock prices are up.

What was a $1,500-cow now sees Kolk selling for more than double.

“Every month … we wish we would have bought more last month because (the price is) higher,” Kolk said.

“It feels like runaway inflation today.”

Kolk says the cost of doing business is way up, paying more for feed and hay.

Futures Market data shows that cattle prices are up six per cent in the last month and 20 per cent compared to last year.

“The cattle business is not jump in for six months and get out and wait till it gets better and then jump back in,” Kolk said.

“You’re in it for the long haul.”

Calgary’s business community hosted the province’s ag-sector Monday.

Many feel there is a level of optimism within the sector that has not been felt in sometime.

“The fact that China has lifted its ban on Canadian beef, being imported to the country, (it’s) fantastic,” said Calgary Chamber of Commerce CEO Deborah Yedlin.

“That really is a great opportunity for us as well. We know that we have what the world needs: Food, fuel (and) fertilizer.”

But getting beef, grains or fertilizer to other markets, including Asia, has been difficult due to high shipping costs.

“It’s great to make the statement that we want to double our agricultural industry when our rails (are) already 100 per cent utilized,” said RJ Sigurdson, Alberta’s agricultural minister. “How are we going to get doubling of that to market?”

Despite the optimism for some, others in the industry say global volatility has challenged the sector like never before.

“Just in recent years, we endured those droughts, Covid policy issues, multiple supply chain collapses and even last year’s Liberation Day,” said Cam Baker, senior director of global government and industry affairs at Nutrien.

“What we’ve encountered over the past several weeks has impacted global agriculture like very few events in history.”

Baker believes it could take years to regain equilibrium in the sector.

The conflict involving Iran is pushing up the cost of fuel and fertilizer, a double hit for farmers who rely on diesel to run equipment and fertilizer to grow crops.

Some estimates suggest input costs have jumped between 20 and 40 per cent since the conflict began.

Alberta will host the 35th annual Tri-National Accord in late September with agricultural delegates from the U.S. and Mexico. The conference aims to strengthen trade, food security, and agricultural innovation.