Why drought on the prairies is making your steak more expensive

From parched southern Alberta to water-scarce east Texas, ranchers have been downsizing their herds due to a lack of grass for grazing.

Ask John Wildenborg if he thinks Canadians will be paying more for steak during future barbecue seasons, and the owner of Calgary specialty butcher shop Master Meats doesn't hesitate.

"Prices are definitely going to go higher, no ifs, ands or buts about it," he said.

"It keeps me up at night, actually, thinking about coming into the summer and where prices are going to be. It's not a good situation."

Beef — whether in the form of a juicy burger or a classic tenderloin steak — is a mainstay of many Canadians' diets. Its popularity is the reason why consumer demand for beef has historically remained strong, even through periods of economic downturn when Canadians have less money in their wallets.

But the business of beef is changing, in large part due to consecutive years of severe drought across North America's main cattle-producing regions. From parched southern Alberta to water-scarce east Texas, ranchers have been downsizing their herds due to a lack of grass for grazing. The resulting shortfall in cattle supply is reducing overall beef production and helping to push retail beef prices higher.

"A 10-ounce New Yorker right now ... would cost around $20. Three years ago that was maybe a $15 steak," Wildenborg said.

"And this is usually the slow time of year for beef, but wholesale prices haven't dropped off at all since Christmas. I'm paying 40 per cent higher than I was last year at this time."