The cost of wholesale beef has nearly doubled in Canada over the last five years, and industry professionals warn it won’t be going down anytime soon.
Brad Sackville has been a butcher at Lakeview Market in Kelowna for more than 20 years. He said the cost of beef has increased substantially in recent months.
"It started really rising about four or five months ago and it's up pretty close to 20 percent now," Sackville said.
Sackville blamed the increase on low supply and high demand, saying many ranchers have left the business after receiving poor returns and experiencing bad weather on the range.
“I'm afraid they’re going to go up a little bit more before they level off,” he said. “Maybe within a year or a year and a half they'll start dropping again ... I'm pretty sure it'll be a while."
For some in the cattle industry, the price jump is giving their businesses an opportunity to survive. Keith Balcaen, the owner of Coldstream Ranch in the Okanagan Valley, said the high prices for beef are a relief after 10 years of dismal business starting around the time of the mad cow disease crisis in 2003.
“We've been in the red ink for a good seven out of the ten years and it's time it has to stop, so it's a nice turn around," Balcaen said.
Cattle herds in British Columbia are down 25 per cent as many ranchers are not able to stay in the industry.
“The ones that have [stayed in the business] are basically brought to their knees, so prices where they are now, I feel is where they have to be to sustain a living," Balcaen said.
With a report from CTV Vancouver'’s Kent Molgat
