Grain-fed calf producers are reeling from the rising prices of feed needed to feed their herds.
With production costs now exceeding the selling price, the shortfall could amount to tens of thousands of dollars for many producers without financial assistance.
“In fact, for us, grain-fed veal, this is the second year where the cost of production is higher than the selling price,” observes Louis-Joseph Beaudoin, president of the grain-fed veal marketing committee of Les Producteurs of Quebec cattle.
A grain-fed calf currently costs $1,175 to produce, while it is sold for $1,090. At these prices, the shortfall for an average producer—about 500 animals annually—could amount to as much as $42,5000.
Financial aid
Result: the Financière agricole must financially help breeders for a second year in a row. In July, the Financière agricole — whose mission is to provide farmers with an income — paid out $2.4 million to grain-fed veal producers.
“These sums will allow producers to have access to cash in a context where the selling price is lower than the cost of production”, explained the organization, during the announcement.
Grain-fed veal refers to calves that, after being fed milk for five weeks, feed on grains, such as corn. And it is precisely the cost of feed used to feed the animals that currently weighs on the industry.
“Food represents about 50% of our production costs,” explains Mr. Beauchemin, adding that the price of the main food, corn, has jumped 28% in one year. “The increase of the last few months is directly linked to the world market [des grains] who is upset by the war in Ukraine. »
And calf producers are not alone. La Financière agricole also paid out $12.5 million to lamb producers in July.
In the case of veal, this is a reality whose impact goes beyond Quebec’s borders.
Of the more than 200,000 calves produced in Canada, 75% of production is done in Quebec. In fact, 100% of milk-fed calves and 60% of grain-fed calves come from the province. Although the prices paid by consumers have increased in recent weeks, “we are doing everything not to pass the bill to them”, assures Mr. Beaudoin.
The restorers
Breeders fear that an increase in prices in grocery stores or butcher shops will undermine the efforts made in recent years to carve out a place for themselves in this niche. “We worked hard to get people to consume it at home, in their daily lives,” he argues.
What about restaurants? “Restaurants can change proteins, but for veal, they will often turn, unfortunately, to imported veal, which is veal that is not of the same quality and often comes from Australia and New Zealand. »
Mr. Beaudoin recalls that the breeders he represents are today “in competition with all proteins, not just meat: fish, tofu, etc. “. Eating habits have in fact considerably changed protein consumption.
According to Statistics Canada data, in thirty years, the quantity of veal consumed has fallen by nearly 40%, falling between 1991 and 2021 from 1.48 kg to 0.89 kg.