Beef producers are enjoying the highest prices in years, but how long that lasts remains to be seen.
That according to a B-M-O economist speaking at Grey Bruce Farmers Week.
Prices cattle farmers are getting now are about 40 per cent higher than two years ago.
That's because of an overall reduction in herd size.
Aaron Goertzen (gert zen) says prices could yet go higher as producers hold back production in order to increase herd size.
But if enough producers increase herd sizes, then supply increases and the price comes down.
"If you have widespread plans for expansion that all come on line in a short period of time then that could tend to put a very sharp downward pressure on prices and that's part of why you see cattle prices as volatile as they are," said Goertzen.
He says another concern is declining beef consumption in the developed world.
He says that could be offset by increased demand in emerging markets like China an India.
Today is Dairy Day at Grey Bruce Farmers Week in Elmwood.
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Aaron Goertzen says beef prices could go higher as producers hold back animals to build up their herds.
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While prices could go higher if producers hold onto animals to build up their herds, Goertzen says larger herds could eventually lead to lower prices.
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