Eli J. Ridder/CHAT News

By Eli J. Ridder

AGRICULTURE

High Alberta cattle prices related to drought years and economic pressures, industry expert says

Nov 27, 2024 | 4:41 PM

Cattle prices have shot up in Medicine Hat and across Alberta during November because of previous drought conditions and recent economic pressure, a Medicine Hat Feeding Company executive said Wednesday.

“The last couple of years, the ranchers have had to drop numbers pretty significantly with the drought conditions,” the company’s manager Wyatt Stuber told CHAT News.

Alberta experienced significant drought years in 2021 — considered the worst in 60 years — and in 2023, only finding some recovery in 2024.

Current economic pressures are contributing, too.

IN THE COMMUNITY

Medicine Hat's Mustard Seed adding new shelter spaces at Alberta government's request

19h ago

HOLIDAYS

Medicine Hat Kiwanis hosting Christmas dinner, applications due Friday

Dec 12, 2024

IN THE COMMUNITY

'Compassionate Friends' offer peer support for bereaved in Medicine Hat

Dec 11, 2024

“The input costs and everything have gone up, just like everything. So they need that extra dollar in their pocket to keep on going,” Stuber said of cattle ranchers.

Year-over-year, cattle prices jumped 7.6 per cent in September compared to a year previous, Statistics Canada figures show.

The calf and feeder market has experienced a seasonal rally that hasn’t been seen since 2004, according to a recent report by CANFAX.

The only other time in the last 20 years when 550-pound steers were breaking records for the second half of a year was in 2004, according to the report.

It’s a counter-seasonal rally that Stuber hopes doesn’t keep rising for the final buyers.

“Hopefully it doesn’t get priced out of the grocery store, where the average people can’t purchase the beef,” he said.

Retail prices have continued to rise with skyrocketing cattle costs, with food prices increasing by 2.7 per cent over the last 12 months, according to Statistics Canada figures.

The price of ground beef in September was about $13 on average, a jump from $9 five years ago.

Stuber said consumers can help by continuing to purchase beef products.

“We hope that everybody still buys beef and everything to keep us ranchers going.”