The fallout from the coronavirus pandemic is disrupting the regular patterns of beef processing in Canada as processing plants there are shuttered to deal with employee illnesses, according to the analysts for the Daily Livestock Report.
The situations affecting several Canadian protein plants, including those owned by JBS and Cargill Inc., have led to lower numbers of cattle on feed, cattle placements and marketing, the report published by Steiner Consulting Group noted. Cattle placements, for example, started the year at 113,700 head in January, the highest level for that month since 2014, DLR reported. However, the 3% decrease between February and March to 118,700 head was 32.4% below levels in March 2019.
Slaughter capacity decreases also have led to a decline in Canadian cattle prices with fed steer prices in Alberta for the week of April 24 falling 31.3% from January. The weighted average 800-900 pound Alberta steer has fallen 17% since the start of the year — to US$110.69 per cwt — the lowest price of since the start of 2014, DLR reported.
McDonald’s Canada on Tuesday said it would move to sourcing imported beef, breaking with its long-standing policy of sourcing 100% of its beef domestically, due to iprocessing capacity limitations with suppliers including the closure of Cargill’s High River, Alberta, facility. On Wednesday, Cargill said in a statement it plans to restart operations at the facility with one shift beginning May 4.
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This news item was updated to reflect the correct number of placements in Canada in January and March.