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COVID‐19 and the Canadian cattle/beef sector: A second look

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  • James Rude

Abstract

After a year of adjusting to the shocks associated with COVID‐19 the Canadian cattle and beef sector faces a relatively optimistic future. This note examines the past year for this supply chain from the perspective of the consumer up to the cow‐calf producer by considering consumer reactions, labor market constraints, and supply responses. In the second quarter of 2020, the sector faced a significant challenge with continent wide shutdowns of beef packers reducing the U.S. beef supply by one‐third and Canadian beef slaughter by almost 60%. These shutdowns resulted in a sharp divergence between wholesale beef prices, which more than doubled, and fed steer prices, which declined by one third. Despite these dramatic shocks, the sector has returned to near normal conditions with prices and production levels similar to those observed prior to the pandemic. The near term prospects for 2021 are very similar to the current market situation. Après une année d'adaptation aux chocs associés à la COVID‐19, le secteur bovin canadien fait face à l'avenir avec un relatif optimiste. Cette note examine l'année écoulée pour cette chaîne d'approvisionnement du point de vue du consommateur jusqu'au producteur de vache‐veau en tenant compte des réactions des consommateurs, des contraintes du marché du travail et des réponses de l'offre. Au deuxième trimestre de 2020, le secteur a été confronté à un défi de taille avec les fermetures à l'échelle du continent des abattoirs de bœuf, réduisant l'offre de bœuf aux États‐Unis d'un tiers et l'abattage de bœuf canadien de presque 60%. Ces fermetures ont entraîné une forte divergence entre les prix de gros de la viande bovine, qui ont plus que doublé, et les prix à la ferme, qui ont diminué d'un tiers. Malgré ces chocs dramatiques, le secteur est revenu à des conditions quasi normales avec des prix et des niveaux de production similaires à ceux observés avant la pandémie. Les perspectives à court terme pour 2021 sont très similaires à la situation actuelle du marché. Mots clés: COVID‐19, chaîne d'approvisionnement en viande bovine.

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  • James Rude, 2021. "COVID‐19 and the Canadian cattle/beef sector: A second look," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(2), pages 233-241, June.
    • Handle: RePEc:bla:canjag:v:69:y:2021:i:2:p:233-241
    DOI: 10.1111/cjag.12277
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    References listed on IDEAS

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    2. Azzam, Azzeddine & Gren, Ing-Marie & Andersson, Hans, 2023. "Comparative resilience of US and EU meat processing to the Covid19 pandemic," Food Policy, Elsevier, vol. 119(C).

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