Record-breaking cattle prices a lifeline for farmers facing inflation, trade tensions

Cattle prices have reached record highs in 2025, bringing much-needed financial relief to Manitoba ranchers who have faced years of stagnant returns and rising operational costs. Barry Lowes, a rancher from McAuley in southwestern Manitoba, witnessed the Livestock Markets Association of Canada auction in Virden with amazement as prices soared to unprecedented levels.

Lowes had already experienced a record-breaking bull sale in February, where animals sold for nearly $11,000, up significantly from the previous year. The 393 black steers he brought to the Virden auction also fetched the highest prices he had ever seen. This surge in prices comes as a welcome relief after years of industry turbulence.

The tight cattle supplies and strong consumer demand have been driving the increase in prices, providing ranchers like Lowes with some financial breathing room. Canada’s cattle population has decreased by nearly five percent in the past three years, according to Statistics Canada, further contributing to the price surge.

Veteran cattle auctioneer Rob Bergevin, who has been in the business for 25 years, noted that prices have never been as good for producers as they are now. A bull at the recent auction sold for $3.18 per pound, one of the highest values he had ever seen on the auction floor. Live sales are up by at least $1,000 per animal compared to the previous year, according to Rick Wright, CEO of the Livestock Markets Association of Canada.

Statistics Canada reported that cattle for slaughter were selling for nearly $263 per hundredweight in March 2025, the highest price recorded in their data going back to 1985. Wright explained that the cattle market typically operates in 10-year cycles, with the last peak in 2015 at $193 per hundredweight, followed by a sharp decline in 2016.

While the current market surge is providing temporary relief from high feed and fuel costs, as well as global trade uncertainty, it has prompted some producers to consider cashing out. Trevor Atchison, a farmer from the Pipestone area, hopes that the high prices will encourage younger individuals to enter the industry and help rebuild North American cattle herds. However, he acknowledges that the soaring prices can make it challenging for new producers to enter the market.

Wright anticipates a further contraction in the market as the industry becomes increasingly expensive to join, leading some longtime ranchers to cash out while prices are favorable. This trend could hinder efforts to grow the Canadian cattle herd to meet consumer demand for Canadian beef. As a result, the number of cattle in Canada has decreased to levels not seen since 1989, according to a 2024 report from Statistics Canada.

Dallas Johnston, a farmer from Brookdale, is one of the longtime ranchers considering retirement and has downsized his herd in recent years. He recognizes that the current prices may represent the best return on cattle he will ever see and is taking the opportunity to plan for his family’s future.

As consumers face higher beef prices at grocery stores, Johnston wonders if the industry’s current pricing levels are sustainable. The increased cost of beef may turn it into a luxury food item, akin to lobster, reserved for special occasions based on consumer affordability. Despite the uncertain global economic climate, producers like Atchison remain optimistic about the future of the industry, banking on strong consumer demand to sustain the high prices.

In conclusion, the record-high cattle prices in 2025 have brought much-needed relief to Manitoba ranchers after years of financial challenges. While some producers are considering cashing out, others are hopeful that the industry’s current strength will attract new entrants and support the growth of the Canadian cattle herd. The sustainability of these high prices remains uncertain, but for now, producers are enjoying the benefits of strong consumer demand for Canadian beef.