Shoppers ‘adjust’ to surging meat prices by cutting back, Metro says

Sharply higher prices for red meat have been a constant throughout the summer, and that trend will continue into the fall, grocery store executives and experts say.

But at least we’re getting a bit more used to it.

Speaking on a call with analysts, Eric La Flèche, the head of Metro Inc said there’s been an “orderly pass-through” of higher beef and pork costs onto shoppers.

Grocery price inflation has come back to life in recent months, led by fresh foods including fruits and vegetables. But meat prices have been far and away the primary driver, Metro and experts say.

READ MORE: Grocers taking some of the ‘shock’ out of fresh food price surge

“Sometimes there’s sticker shock,” La Flèche, who heads one of the country’s biggest supermarket chains, said, noting “spikes” in meat prices that have been as much as 25 per cent or more at the check-out.

Shortages of beef and pork have hit both red meats this year as drought drained North American cattle herds to multi-decade lows. A pig virus called PED has similarly produced pork shortages.

Eating less red meat

While many shoppers are simply paying more, others are refusing to.

La Flèche said shoppers at Metro, which operates about 600 stores across Ontario and Quebec under its flagship Metro banner as well as Metro Plus, Super C and Food Basics, are doing what also might be expected – reining in meat consumption, or trading down to cheaper alternatives.

“Certain meat products have gone up quite a bit and there’s been a change in buying behaviour,” La Flèche said. “Consumers … have adjusted.”

READ MORE: Heat’s on for The Keg and other steakhouses as beef prices flare up

Experts note that Metro’s “tonnage” or volume of food it sold at existing stores in the three months up to July 5 actually declined by 0.5 per cent.

“It’s mostly attributable to meat,” the Metro executive said.