Cattle costs have soared to what producers are calling file highs in 2025, providing long-awaited monetary reduction to Manitoba ranchers after years of stagnant returns and rising operational prices.
Barry Lowes, a producer from McAuley in southwestern Manitoba, watched the Livestock Markets Affiliation of Canada public sale in Virden Friday, marking down costs in amazement as bids soared to unprecedented ranges.
“They’re all amazed at the prices,” Lowes stated. “It’s just quite a spectacle.”
He already had a record-breaking bull sale that noticed animals promote for slightly below $11,000 in February. That’s up round $2,600 in comparison with final 12 months.
Since then, costs have continued to climb. His 393 black steers on the Virden public sale additionally went for the best costs he’s ever seen.
It’s a reduction after years of turbulence within the trade, he says.
For producers like Lowes, the worth swell, pushed by tight cattle provides and robust shopper demand, is easing the monetary stress ranchers have endured for years.
Canada has round 10.9 million head of cattle, a quantity that’s dropped practically 5 per cent in simply three years, in keeping with Statistics Canada.
Cattle auctioneer Rob Bergevin says within the 25 years he’s been within the enterprise, costs have by no means been so good for producers. One bull at Friday’s public sale offered for $3.18 a pound, one among the best values he’s ever seen on the public sale ground.
“It is a ton of fun selling these cattle, I have to tell you. There’s so much interest,” Bergevin stated.
Dwell gross sales are up at the least $1,000 per animal in comparison with final 12 months, says Rick Wright, CEO of the Livestock Markets Affiliation of Canada.
Statistics Canada says cattle for slaughter had been promoting for as a lot as practically $263 per hundredweight (that means per 100 kilos of dwell weight) as of March 2025 — the best value recorded within the StatsCan information, which works again to 1985.
The cattle market usually strikes in 10-year cycles, Wright stated.
The 2015 market noticed costs as excessive as $193 per hundredweight, however they dropped sharply in 2016, falling to as little as $91 by the top of that 12 months.
The present market surge is providing short-term reduction from excessive feed and gasoline prices, and world commerce uncertainty, Wright says.
However whereas some see alternative, others are cashing out, elevating questions in regards to the long-term way forward for Canada’s trade.
Money out or keep in
Pipestone space farmer Trevor Atchison hopes the present costs will encourage youthful individuals to remain within the trade and assist construct up North American cattle herds. His household has been within the enterprise for round 100 years and has a herd of about 600 mom and calf pairs.
However the hovering costs generally is a double-edged sword, he says, making it troublesome for brand spanking new producers to hitch in whereas the market is sizzling.
“It just takes so many more dollars to buy,” he stated.
Wright expects to see an extra market contraction as a result of the trade is more and more costly to get into.
On the identical time, longtime ranchers are opting to money out whereas the cash is nice.
“There are a lot of guys that are my age that are looking at cashing in,” stated Wright. “The last good time was in ’15, and they missed it.”
Which means it is going to be laborious to develop herd numbers, he says, to satisfy calls for for Canadian beef.
That generational shift is already exhibiting up in nationwide information. The variety of cattle in Canada has dwindled to the bottom ranges since 1989, in keeping with a 2024 report from Statistics Canada.
Dallas Johnston, who farms close to Brookdale, northeast of Brandon, Man., has been elevating cattle because the Eighties. Proper now, he has about 30 cattle in his herd, after downsizing from 70 during the last couple years.
Johnston, who’s in his 60s and nearing retirement, is aware of this can be the most effective return on cattle he’ll ever see. The costs are giving his household time to determine their subsequent steps.
“It’s pretty nice when you see guys walk out of the Auction Mart … holding their cheque in their hands and just a big smile on their faces,” Johnston stated.
Provide and grocery retailer demand
In the meantime, any time he visits the grocery retailer, Johnston makes a degree of testing the meat aisle, and finds the present costs mind-boggling.
He thinks it exhibits that the trade is getting into uncharted pricing territory, from the farm to the grocery aisles, and he’s undecided it’s sustainable.
Present costs are making beef a luxurious meals, like lobster, for particular events, based mostly on what shoppers can afford, Wright says.
When he {couples} that with the present world financial uncertainty, it’s laborious to gauge how lengthy the excessive costs will final.
Pipestone farmer Atchison says for now, he’s relying on shopper demand for Canadian beef to maintain the trade sturdy.
“It’s supply and demand, and there’s lots of demand,” Atchison stated. “The supply is tight. It just keeps those prices either increasing, or at least holding, for the foreseeable future.”
