Meat consumption and demand is falling in Canada due to lower household incomes, soaring meat prices and a struggling restaurant industry, according to a new report.
The report from Farm Credit Canada (FCC) explains: “As incomes fall or prices rise… we expect meat consumption to fall as households cut back on more expensive meals. “Recurring closures and food service closures also reduce meat consumption.”
The FCC is a consortium that provides financial services and loans to farms to support the sector. In a January report on economic trends in agriculture and food, the FCC said ongoing inflation due to the COVID-19 pandemic is responsible for many of the costs and concerns Canadian farmers are currently experiencing. must face to face.
The report adds: “Animal proteins are not immune to inflationary pressures elsewhere.
Using data from Statistics Canada, the report shows that demand for beef began to taper off after peaking in late 2020. As of 2021, Canadians appear to be making up for it by buying more more chicken.
“Demand for chicken will pick up again in 2021 as food services reopen widely and perhaps higher red meat prices lead to a substitution of red meats,” the report said.
In addition to higher meat prices, the report also shows that the COVID-19 pandemic has led to increased transportation costs and labor shortages, while widespread drought in 2021 has negatively impacted production. economically important crops such as wheat, canola and barley.
“Last year was not the year of recovery and respite that we thought was imminent after the horror story of 2020,” the report said. “Throughout 2022, we will be watching closely to see if demand indicators return to pre-pandemic levels and resume growth.”