Beef, sheep or goat fat market in Canada

Earlier Report Observations

The Canadian beef, sheep and goat fat market volume fluctuated between 181,000 and 231,000 tonnes from 2018 to 2023. A key disruption occurred in 2020 when the COVID-19 pandemic led to the closure of two major beef processing plants in Alberta, interrupting 70% of Canada's beef processing capacity. This created a backlog of cattle and contributed to a constrained supply chain during that year. The market rebounded in 2021, supported by Canada's official recognition by the World Organisation for Animal Health as a country with negligible risk for bovine spongiforme encephalopathy (BSE), which opened new export opportunities and supported production levels.

A significant contraction in market volume to 181,500 tonnes occurred in 2022. This was primarily driven by a sharp rise in exports, which reached 260,000 tonnes, as the industry accessed growing markets like Mexico, the Philippines, and South Korea. Concurrently, the Canadian cattle herd reached its lowest level since 1988 due to high animal feed costs and the lingering effects of the 2021 drought, particularly in Western Canada, putting pressure on domestic supply. The market recovered partially in 2023 to 200,100 tonnes. This recovery was facilitated by a notable drop in export volumes, even as domestic production eased due to tighter cattle supplies and lower slaughter rates, which also contributed to a 17.5% year-over-year price increase for fresh and frozen beef in March 2023.

Throughout the period, the sector adapted to evolving regulations, including the 2022 enactment of Quebec's Animal Welfare and Safety Act with specific rules for cattle farms. Federal and provincial investments, such as a CAD 3 billion fund from 2018-2023 to strengthen agriculture, provided underlying support for the red meat sector. Industry opposition also emerged against proposed health warning labels on packaged ground beef.

Production beef, sheep or goat fat in Canada

In kind, 2017-2020, K t

From 2017 to 2020, Canada ranked 7th globally in the production volume of beef, sheep, or goat fat.

Top producers of beef, sheep or goat fat, 2017-2020

World map of production of beef, sheep or goat fat, 2017-2020

After rising for two years, Canada's production of beef, sheep, or goat fat declined. In 2020, production reached 368.7 K t, which is 1.4% lower than in 2019. Between 2017 and 2020, overall production increased by 6.2%, representing an annualized growth rate of 2.0%. The peak was recorded in 2019 at 374.0 K t, while the largest annual increase occurred in 2018 at 4.2%.

Annual dynamics of production in Canada in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Canada's production value of beef, sheep, or goat fat increased for the third consecutive year. In 2020, output was valued at 307.5 M $ US, up 5.7% from the previous year. Over the period from 2017 to 2020, production value grew by 20.9%, with a compound annual growth rate (CAGR) of 6.5%.

Annual dynamics of production in Canada in value, 2017-2020, M $ US

Exports beef, sheep or goat fat from Canada

Exports in kind, K t

Canada's exports of beef, sheep, or goat fat increased for the third consecutive year. In 2020, export volume reached 217.0 K t, rising 10.3% from the previous year. Between 2017 and 2020, exports grew by 48.6%, equating to an annualized rate of 14.1%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K t

From 2017 to 2020, the United States clearly dominated Canada's exports of beef, sheep, or goat fat in volume, accounting for 79.1% of total flows, while other countries each held significantly smaller shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

Canada's export value of beef, sheep, or goat fat increased for the third consecutive year. In 2020, exports stood at 181.0 M $ US, showing a robust uptick of 18.2% compared to 2019. Over the period from 2017 to 2020, export value grew by 69.1%, with a compound annual growth rate (CAGR) of 19.1%.

Annual dynamics of product's exports from Canada in value, 2017-2020, M $ US

From 2017 to 2020, the United States consistently accounted for 81.2% of Canada's total export value of beef, sheep, or goat fat, indicating a high concentration on this market, with the remainder shared among other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports beef, sheep or goat fat to Canada

Imports in kind, K t

Canada imported 47.2 K t of beef, sheep, or goat fat in 2020, up 51.9% from the previous year. Over the period from 2017 to 2020, imports increased by 90.4%, with a compound annual growth rate (CAGR) of 23.9%. The largest annual decline occurred in 2019 at 21.1%, while the largest increase was recorded in 2018 at 58.9%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K t

From 2017 to 2020, the structure of Canada's imports of beef, sheep, or goat fat in volume was dominated by a single market: the United States, with a share of 99.3% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

In 2020, Canada's import value of beef, sheep, or goat fat amounted to 38.9 M $ US, which is 65.4% higher year-over-year. Between 2017 and 2020, import value increased by 74.3%, equating to an annualized growth rate of 20.3%. The largest annual decline was recorded in 2019 at 18.4%.

Annual dynamics of product's imports to Canada in value, 2017-2020, M $ US

From 2017 to 2020, the United States concentrated almost all of Canada's import value of beef, sheep, or goat fat, with a share of 98.7% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020