Beef supply shortages leading to higher prices for P.E.I. consumers

Consumers should expect beef prices to continue rising thanks to a supply shortage, according to Russ Mallard, president of Atlantic Beef Products.

Major processing plants in southern U.S. states, such as Texas, are experiencing labour shortages due to COVID-19.

"Consequently, we're seeing record high prices for this time of the year for the beef that would be for sale because there's less of it and the demand is pretty great right now," Mallard said.

We're lucky we don't really have a drought per se here in this part of the country right now.— Russ Mallard, Atlantic Beef Products

While meat processors start catching up once they put COVID-19 behind, Mallard said prices will remain elevated due to a drought in western North America which is forcing many Canadian and U.S. cattle ranchers to reduce the size of their herds..

"The feed supply has been affected negatively for the beef producers and dairy producers in that part of the country," Mallard said.

"It's actually led to a shortage of feed and therefore some of the herd has been sent in for processing earlier."

Mallard said it could take two to three years before the industry rectifies the supply issues triggered by the drought. 

"We're lucky we don't really have a drought per se here in this part of the country right now," he said.

"But where most of cattle is being produced, which is in Western Canada, there is a drought and it is definitely affecting what happens here in Prince Edward Island."

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