Cow herd shrinking in Manitoba as price for beef goes up

CTV’s Joseph Bernacki takes a closer look at Manitoba’s beef industry, which warns there is little relief in sight for the current high prices.

A Manitoba cattle farmer said beef prices are spiking at grocery store counters and rising costs, drought and fewer producers could be driving the demand.

Jonathan Vaags has spent most of his life surrounded by cows at his family farm in Dugald. Operating a feedlot in the community has become a challenge in recent years due to rising costs.

“The cow herd is one of the lowest numbers that it’s been in years and that’s putting a big strain on the supply side of the market,” said Vaags, manager of Clover Spring Farms.

Vaags and his family have nearly 2,000 head of cattle in their herd. He says beef farming in Manitoba has shrunk over the last five years.

Vaags believes recent drought, rising input costs and an aging population amongst farmers are contributing to the decline.

“The price of a bag of corn has over doubled in the last five years,” Vaags said.

“The price of diesel fuel, the price of labour, everything has gone up, and I have to pay that and I need to cover those expenses off the backs of the cattle.”

He said that aging out of farming has been noticeable over the past few years.

“Beef farmers in Manitoba, you had lots of guys know that when the price of beef was getting high, they said this is my time to pack it in and they’re taking advantage of that,” he said.

Manitoba Beef Producers said the declining numbers of farmers are not exclusive to the province.

“I think it’s pretty consistent across the whole country in terms of the decrease in herd size, I think every province is dealing with an issue,” said Manitoba Beef Producers general manager Carson Callum.

While the demand for beef is shooting up prices for producers, consumers are feeling the pinch too.

Munther Zeid, owner of the Silver Heights Food Fare, said the price of beef really comes down to the cut.

He’s found while prices have increased, the margin between cuts has gotten smaller. He said the demand for red meat is high ahead of the holiday season.

“This week alone, I’ve had numerous, I’m going to say at least 25 to 30 inquiries asking what’s our price going to be for prime rib for Christmas,” Zeid said.

While the store hasn’t set a prime rib price tag yet, Zeid says their prices will be competitive.