Why beef prices on P.E.I. could be down in the new year
The price of beef is expected to go down in the new year as the industry manages increased supply and lower demand from consumers, says a processor on P.E.I.
"There's too much beef and not enough cattle around right now," said Russ Mallard, president of Atlantic Beef Products in Albany, P.E.I.
Mallard said the "significant downward pressure" on the price of beef should lead to lower prices early in the new year, when consumers are generally more strapped for cash.
Retailers will look at whatever can give them the best profit margin and will advertise those products accordingly, he said.
"So we expect to see, you know, things like ground beef and maybe some lower cut roasts and so on to be more featured in the new year. Less emphasis on the higher price cuts like rib-eyes, striploins, tenderloins, that sort of thing."
The price of cattle, meanwhile, is the highest it's been in years, resulting in tighter margins for plants like Atlantic Beef Products, Mallard said.
The plant has been undergoing an expansion and is still looking to hire about 15 employees.
"We're just looking for ways to keep our plant as efficient as possible and that includes getting back up to full production."