Beef prices "beef-up"
Eric Clark
News Editor
For the past four to five months, beef prices have soared to new highs in the cattle industry. And area businesses and cattlemen are taking note.
Fueled by the lack of beef supplied from Canada, after a severe drought and the fear of mad cow disease, the United States is finding itself the primary benefactor of the tragic events that have plagued the upper province.
The latest demand for beef products comes at a time when consumers are flooding the stores for meat. Many believe the "beef rush" is in direct correlation with the popularity of the high-protein Atkins diet.
According to studies, retail meat prices have shot up 11 percent in the past year.
Local cattleman Lyle Suderman and his brother Don have been on the receiving side of the beef boom in the last couple of months.
"We kind of saw the beginning of the trend in late summer and early fall," Lyle said. "Timing has had a lot to do with it. Fortunately, we've had some cattle to sell during the high spot."
The duo, who runs between 600 and 800 head of cattle during the year a quarter mile south of Ebenfeld Church, said they take their cattle to market when the cattle weigh between 750-775 pounds.
Lyle said he's heard of ranchers getting a dollar per pound in recent weeks, but said he's remaining cautiously optimistic about the market despite the good news.
"I'm really tickled, but it's a little bit scary," Lyle said. "We've never sold cattle this high. One rumor of mad cow disease, and the bottom could drop right out."
Matt and Nikki Hiebert, owners of Hillsboro Refrigerated Lockers on Ash Street in Hillsboro, have also seen positive signs of the demand for beef.
"It has helped some," Matt said. "Our volumn certainly has increased. Our prices haven't increased much because everything is locally produced. The guys that I've been working with are working with me, and we're trying to make things affordable."
While others are seeing the upside of the beef demand, businesses like Dale's Supermarket and Vogt's IGA are seeing higher prices from their wholesale outfits — something that could translate into higher prices for consumers according to both business owners.
Dale Frantz, owner of Dale's Supermarket, is already feeling the effects of higher prices and said he's paying higher prices from his wholesaler.
Jerold Vogt, one of three owners of Vogt's IGA, said he recently attended a meeting regarding beef prices and said officials are expecting prices to remain high until March of 2005.
"It's all about supply and demand," Vogt said. "We'll just try and do the best we can to keep our prices as low as we can for our customers."
Suderman said he has no idea how long the market will stay high, but said he thinks the cattle industry is paying close attention to any threat of disease within the U.S.
"The industry is watching it very close," Suderman said. "I'm really hesitant. I can't see that the market will stay this high. We're definitely in the high end."
