By Brent Bosker

The price of beef to rise in 2011: Canfax

Jan 11, 2011 | 11:39 AM

There is a sense of optimism in 2011 for those in the cattle industry who stuck it out during the lean years following the fallout from the 2003 BSE crisis.

Cattle prices are on the move and have reached a five-year-high, supported by strong demand for protein in emerging markets and tight supplies.

“For the average rancher who still has their herd this is a good thing,” said Brenna Grant, a research analyst for Canfax.

However, the upswing in prices will be soon be passed along to the consumer said Grant.

“We’re going to be seeing some higher prices.”

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Grant is quick to point out retailers will be cautious how much they increase the sticker price on ground beef and steaks.

“We’re actually very cautious partly because of the economic situation. We don’t know how much the consumer can take, so in 2011 we are going to be somewhat feeling our way.”

Grant can’t predict how much of an increase the consumer will see, but it will be influenced by what the market will bear.

“(The consumer) is going to really determine how high this market goes. How much are they willing to pay for this product and how much push back we get,” Grant said.

Grant adds, because Canada is an export nation, cattle prices would be even higher if not for the soaring dollar.

bbosker@panow.com