Consumers can expect higher prices and possibly less beef selection at grocery stores in the coming months.
With pandemic uncertainty and various North American packing plants reducing shifts or closing temporarily as a precaution for COVID-19, meat supplies will be affected.
Indeed, in the week ended April 17, U.S.A. average carcass values, known as cutout price in the industry, jumped 20 per cent to $2.84 a pound and started the next week at $2.90.
Cattle market analyst Anne Wasko of Gateway Livestock said in her online broadcast that this trend should continue, as challenging conditions hit the market across the board.
With less cattle needed by packers, she said Western Canadian cash prices for live cattle have fallen between 10 and 12 cents a pound.
Adding to the short supply issue is placement of livestock on feedlots with a reduction of animals.
March placements of cattle in feedlots was down 32 per cent. In the United States placements of cattle in feedlots was down 23 per cent.
The impact of lower feedlot placements will be felt with reduced supply to packers just as the barbecue season starts in summer.
Livestock marketings in Canada are down as well with 502,000 head last month compared with 640,000 head last year.
Some local abattoirs have limited quantities purchased and increased prices.
Ron Walter can be reached at ronjoy@sasktel.net
