Meat consumption and demand are declining in Canada due to lower household incomes, soaring meat prices and the struggling restaurant industry, according to .
鈥淎s incomes fall or prices rise鈥 we expect meat consumption to decline as households cut back on more expensive meals,鈥 the report from Farm Credit Canada (FCC) explained. 鈥淭he recurring lockdowns and foodservice closures also curtailed meat consumption.鈥
FCC is a crown corporation that provides financial services and loans to farms to support the sector. In a January report on economic trends in agriculture and food, FCC said ongoing inflation due to the COVID-19 pandemic underlies many of the costs and concerns currently facing Canadian farmers.
鈥淎nimal proteins weren鈥檛 immune to the inflationary pressures seen elsewhere,鈥 the report added.
Using data from Statistics Canada, the report showed that demand for beef began declining steadily after it peaked in late 2020. Since 2021, Canadians appear to be compensating by purchasing more chicken.
鈥淐hicken demand rebounded in 2021 in response to widespread foodservice re-openings and perhaps higher red meat prices inducing substitution away from red meats,鈥 the report said.
In addition to higher meat prices, the report also showed how the COVID-19 pandemic has led to rising shipping costs and labour shortages, while widespread drought in 2021 negatively impacted the production of economically vital crops like wheat, canola and barley.
鈥淟ast year wasn鈥檛 the year of recovery and respite we thought was imminent after the horror story that was 2020,鈥 the report said. 鈥淭hroughout 2022, we鈥檒l be watching closely to see if the demand indices return to their pre-pandemic level and resume their growth.鈥
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