Why the cost of your meat will rise another five per cent in 2015
Got a beef with high meat prices in 2014? Canadian meat lovers will have to swallow more of the same this year as prices are forecast to rise by three to five per cent, according to the University of Guelph’s Food Price Report.
The increase — described as a stabilization by the report’s authors — follows a year that saw meat prices soar by more than 12 per cent, almost double the 6.5-per-cent price hike predicted by researchers last year.
“Prices have gone up significantly, depending on the item,” said Zul Suleman, owner of Kitsilano butcher shop Market Meats.
Like many meat retailers, Suleman swallowed some of the increased cost, cutting into profits. But prices have stayed too high too long with no end in sight.
“We had to explain to customers gently what’s going on, so they don’t think we’re just suddenly making a huge profit off our clientele,” said Suleman. “It’s unfortunate, it’s a real dramatic jump and we feel it week to week.”
The reasons for the higher costs include constrained supply and high grain prices for cattle feed. Livestock prices for cattle and hogs are also at their highest in at least two decades.
For pork, outbreaks of porcine epidemic diarrhea (PED) in the U.S. and Eastern Canada have depleted herds and pushed pork prices up in the summer when bacon prices jumped 25 per cent and pork chops 18 per cent.
White meat remains less expensive than red meat, but poultry prices have also increased. One Vancouver butcher said the avian flu outbreak in the Fraser Valley hasn’t affected prices over Christmas, but might be reflected when birds go on sale for Easter.
Tavis Olsen, owner of the Fat Duck Truck, is also feeling the pinch. The downtown food truck dishes out only three items, all meaty: a duck confit sandwich, a pork belly sandwich and a rice bowl that features both meats.
The cost of duck had gone up more than $1.50 a kilo since Olsen started his business in July 2013, while pork butt increased an extra $1 and pork belly by more than 20 per cent, to almost $10.
And even though Olsen sources his meats from Fraser Valley farms, he’s also been affected by the PED outbreaks, as a shortage of imported pork puts upward pressure on the price of local products.
“Everything has gone up. It’s tough,” said Olsen. “We were busy in the summer, so we were able to squeak through. But come November, the prices kept on creeping up and the balance was off. The margins are just getting tighter and tighter.”
When Fat Duck returns to the streets next week, Olsen will be tacking on an extra buck to the price of his $9 rice bowl. He also plans to introduce smaller sandwiches to offer more variety at different price points.
“I don’t want to make the portions less, and I don’t want to go over $10 including tax,” he said. “But I’m also trying to be prepared, so I’m not all of a sudden hooped.”
It remains unclear whether consumers are going to be cowed by the price tags. Meat consumption has declined over the last few decades in Canada, but red meat and poultry remain popular sources of protein.
The Food Price Report also noted that consumer preference for sustainable, ethical and responsibly raised food will continue and predicted meat eaters, in particular, to opt for higher-quality cuts of beef and pork in 2015.
John Turions of Harkness & Co., a Mt. Pleasant butcher that focuses on local, ethically sourced products, believes consumers will continue to buy meat, and are willing to pay extra for responsible protein.
“It’s not about cheaper cuts, but about a lifestyle choice,” he said. “Most people I think are willing to pay a premium to support something they are more on-base with.”
Vegetarians and pescetarians aren’t spared price hikes either. The Food Price Report predicted that the cost for fish, seafood and vegetables will rise by three to five per cent in 2015.
source: Why the cost of your meat will rise another five per cent in 2015
Got a beef with high meat prices in 2014? Canadian meat lovers will have to swallow more of the same this year as prices are forecast to rise by three to five per cent, according to the University of Guelph’s Food Price Report.
The increase — described as a stabilization by the report’s authors — follows a year that saw meat prices soar by more than 12 per cent, almost double the 6.5-per-cent price hike predicted by researchers last year.
“Prices have gone up significantly, depending on the item,” said Zul Suleman, owner of Kitsilano butcher shop Market Meats.
Like many meat retailers, Suleman swallowed some of the increased cost, cutting into profits. But prices have stayed too high too long with no end in sight.
“We had to explain to customers gently what’s going on, so they don’t think we’re just suddenly making a huge profit off our clientele,” said Suleman. “It’s unfortunate, it’s a real dramatic jump and we feel it week to week.”
The reasons for the higher costs include constrained supply and high grain prices for cattle feed. Livestock prices for cattle and hogs are also at their highest in at least two decades.
For pork, outbreaks of porcine epidemic diarrhea (PED) in the U.S. and Eastern Canada have depleted herds and pushed pork prices up in the summer when bacon prices jumped 25 per cent and pork chops 18 per cent.
White meat remains less expensive than red meat, but poultry prices have also increased. One Vancouver butcher said the avian flu outbreak in the Fraser Valley hasn’t affected prices over Christmas, but might be reflected when birds go on sale for Easter.
Tavis Olsen, owner of the Fat Duck Truck, is also feeling the pinch. The downtown food truck dishes out only three items, all meaty: a duck confit sandwich, a pork belly sandwich and a rice bowl that features both meats.
The cost of duck had gone up more than $1.50 a kilo since Olsen started his business in July 2013, while pork butt increased an extra $1 and pork belly by more than 20 per cent, to almost $10.
And even though Olsen sources his meats from Fraser Valley farms, he’s also been affected by the PED outbreaks, as a shortage of imported pork puts upward pressure on the price of local products.
“Everything has gone up. It’s tough,” said Olsen. “We were busy in the summer, so we were able to squeak through. But come November, the prices kept on creeping up and the balance was off. The margins are just getting tighter and tighter.”
When Fat Duck returns to the streets next week, Olsen will be tacking on an extra buck to the price of his $9 rice bowl. He also plans to introduce smaller sandwiches to offer more variety at different price points.
“I don’t want to make the portions less, and I don’t want to go over $10 including tax,” he said. “But I’m also trying to be prepared, so I’m not all of a sudden hooped.”
It remains unclear whether consumers are going to be cowed by the price tags. Meat consumption has declined over the last few decades in Canada, but red meat and poultry remain popular sources of protein.
The Food Price Report also noted that consumer preference for sustainable, ethical and responsibly raised food will continue and predicted meat eaters, in particular, to opt for higher-quality cuts of beef and pork in 2015.
John Turions of Harkness & Co., a Mt. Pleasant butcher that focuses on local, ethically sourced products, believes consumers will continue to buy meat, and are willing to pay extra for responsible protein.
“It’s not about cheaper cuts, but about a lifestyle choice,” he said. “Most people I think are willing to pay a premium to support something they are more on-base with.”
Vegetarians and pescetarians aren’t spared price hikes either. The Food Price Report predicted that the cost for fish, seafood and vegetables will rise by three to five per cent in 2015.
source: Why the cost of your meat will rise another five per cent in 2015
