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Due to drought... Canadian beef has become more expensive

Due to drought... Canadian beef has become more expensive

By Omayma othmani

Published: June 30, 2023

Beef farming in Canada has become more expensive due to drought, according to Ryder Lee, director of the Canadian Cattle Association (CCA / ACB). This would reduce the supply while demand at home and abroad remains high.

Drought particularly affects Alberta in the west of the country, the largest beef producer among the ten Canadian provinces. If the feed crop decreases and prices rise, the cost of feeding livestock increases as does their selling price.

Ryder Lee also points out that the situation varies significantly depending on the local environment of the livestock farmers, but generally, they have all been affected by increased production costs. For several years now, there has been a decrease in the number of cattle in the market.

This is the case for Fred Lozman, a cattle farmer from Alberta, who says that the land that has dried up or been depleted over the years has a limited capacity to accommodate a certain number of animals.

Lozman also adds that in the case of drought, feed becomes more expensive and the profitability of livestock farming is at stake.

But despite the reduced supply, demand remains high for high-quality Canadian beef, largely driven by the growing Asian market. This factor reduces the chances of a decline in demand for this meat, according to Ryder Lee.

For his part, Khaled Hajjar opened the "Hajjar Halal Meats" butcher shop 22 years ago in Edmonton, the capital of Alberta. His eldest son, Youssef Hajjar, has been working there for five years.

According to Youssef, the small family butcher shop is no longer as profitable as before, as Youssef Hajjar noticed that some consumer habits have changed.

"Our customers used to buy three or four kilograms of meat every two or three days. Now they buy one kilogram during a week and then two kilograms the following week. Sales have decreased a lot," says Youssef Hajjar.

To keep his customers, the butcher shop offers competitive prices, keeping profits at a minimum.

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