Canadian Press, October 16, 2003
QUEBEC (CP) - Farmers are paying the biggest price in the mad cow scare that rocked the beef industry while consumers in Alberta, Ontario and Quebec have seen modest price reductions, according to a new study by the Quebec government.
The study released Thursday found that retail beef prices dropped by about 15 per cent in the three provinces this summer while farmers received 70 per cent less for their cattle.
While slaughterhouses suffered initial losses, their profit margins recovered by the end of summer, the study said.
"To some extent, retail and slaughterhouses were able to preserve their margins," said Maurice Doyon, an economist and co-author of the report.
The crisis has cost Canadian producers more than $1 billion so far.
The report examining beef prices over the summer months was commissioned by the Quebec government after consumers complained that beef prices remained stubbornly high at supermarkets.
Quebec media also published reports that prices were dropping elsewhere in Canada while remaining high in Quebec.
The study found that the price decline was consistent in Alberta, Ontario and Quebec. However, the decline was only a fraction of the drastically cut price that farmers received for their beef cattle.
The study also revealed trends in consumption among the three provinces. While Alberta produces most Canadian beef, the province consumes more cheap ground beef than Quebec or Ontario.
About a quarter of the hamburger eaten by Albertans is regular ground beef, while Ontarians and Quebecers barely touch it. Ontario is the biggest consumer of extra-lean ground beef among the three.
QUEBEC (CP) - Farmers are paying the biggest price in the mad cow scare that rocked the beef industry while consumers in Alberta, Ontario and Quebec have seen modest price reductions, according to a new study by the Quebec government.
The study released Thursday found that retail beef prices dropped by about 15 per cent in the three provinces this summer while farmers received 70 per cent less for their cattle.
While slaughterhouses suffered initial losses, their profit margins recovered by the end of summer, the study said.
"To some extent, retail and slaughterhouses were able to preserve their margins," said Maurice Doyon, an economist and co-author of the report.
The crisis has cost Canadian producers more than $1 billion so far.
The report examining beef prices over the summer months was commissioned by the Quebec government after consumers complained that beef prices remained stubbornly high at supermarkets.
Quebec media also published reports that prices were dropping elsewhere in Canada while remaining high in Quebec.
The study found that the price decline was consistent in Alberta, Ontario and Quebec. However, the decline was only a fraction of the drastically cut price that farmers received for their beef cattle.
The study also revealed trends in consumption among the three provinces. While Alberta produces most Canadian beef, the province consumes more cheap ground beef than Quebec or Ontario.
About a quarter of the hamburger eaten by Albertans is regular ground beef, while Ontarians and Quebecers barely touch it. Ontario is the biggest consumer of extra-lean ground beef among the three.
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