Is the spike in the price of beef hurting Alberta beef producers?
Alberta's NDP says the massive year-over-year increase in the price of beef at Canadian is not benefiting the province's beef producers and the party is calling for an investigation.
Heather Sweet, the NDP critic for agriculture, forestry and rural economic development says the federal and provincial governments need to explore who is actually benefiting from the beef price spike.
"These price increases are pushing an important source of protein out of reach for families and they are harming Alberta’s beef producers as well," said Sweet in a statement released Friday. "So who is benefiting from these high prices? Where is the money going?"
Provincial data shows the price of cuts of beef is currently 11 to 43 per cent higher than they were in the summer of 2021. Mainstreet Research's Food Insecurity – June 2022 survey found slightly more than 20 per cent of Canadians are simply eating less food due to the high price of groceries.
Callum Sears, president of the Western Stock Growers Association, says the price of live cattle is not keeping up with the jump in the price of beef, and the trend began years back.
“We need to know why that is," said Sears. "Consumers are paying high prices without knowing the breakdown of where their dollar is going. This is a disservice to both the consumer and the beef producer."
Sweet is calling for the investigation into "an important part of Alberta's economy" as the price disparity is part of "something (that) is not working properly and that's harming families and producers."
Beef producers in Saskatchewan called for a similar government investigation last week.
COSTS 'INCREASED DRAMATICALLY'
John Smith with Plateau Cattle in Nanton says while the value of a calf is up compared to last year, so are a lot of costs.
“Our inputs have increased dramatically. I would say that gain in there has been used up in fertilizer and diesel, increase in living as we all experience,” he said. “At the end of the day the chain gets smaller and smaller on the way down and when you’re on the bottom like us really you take your calves to town and do your best to market them.”
Many costs tied to the rising costs of beef can be accounted for including inflation, and increased costs for labour, transportation and energy but experts said there are some grey areas in the industry not just in Alberta but across Canada.
“All of these elements have gone up, so to operate a plant it cost more money,” said Sylvain Charlebois, a professor of food distribution out of Dalhousie University. “But is there an element of greed-flation in packing? It’s a possibility but we don’t know for sure until we get into the numbers and we can't get into the numbers until we launch an investigation.”
PRICE TRANSPARENCY
Industry leaders are exploring the issue of price transparency in the market.
The provincial government is helping fund an Alberta beef competitiveness study lead by the Alberta Cattle Feeders’ Association, the Canadian Cattle Association and the Alberta Beef Producers.
“Research in this area will hep industry and government understand the best approach to diversify, and build capacity and resiliency for Alberta’s meat processing sector. It will also address concerns around price discovery and transparency,” said the Alberta Beef Producers.
Results of the study are expected later this year, which can’t come soon enough to some ranchers and producers with the cost of beef forecasted to spike again in the fall.
“Hopefully some trickle down starts to happen to keep the producers in it because with the current economics, no intelligent business man would do what we’re doing,” said Smith.
CTVNews.ca Top Stories
LIVE B.C. seeks ban on using drugs in 'all public spaces,' shifting approach to decriminalization
The B.C. government is moving to have drug use banned in 'all public spaces,' marking a major shift in the province's approach to decriminalization.
Air traveller complaints to Canadian Transportation Agency hit new high
The Canadian Transportation Agency has hit a record high of more than 71,000 complaints in a backlog. The quasi-judicial regulator and tribunal tasked with settling disputes between customers and the airlines says the backlog is growing because the number of incoming complaints keeps increasing.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
U.S. flight attendant indicted in attempt to record teen girl in airplane bathroom
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
76ers All-Star centre Joel Embiid says he has Bell's palsy
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
AFN chief says Air Canada offered a 15% discount after her headdress was mishandled
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Trump's lawyers try to discredit testimony of prosecution's first witness in hush money trial
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.