Canadian Feed Costs Are Rising: What Tight Barley Supplies Mean for Cattle Producers Canadian feed costs

If you're feeding cattle in Canada, you've probably noticed that the price of feed can change quickly.

Barley moves higher.

Wheat becomes more competitive.

Corn prices shift with U.S. production.

And suddenly the cost of putting another pound of gain on cattle looks very different from a few months earlier.

The latest Canadian feed grain outlook suggests that feed costs could remain elevated through the 2026–27 crop year, with barley facing particularly tight supplies.

According to market analysis published by Canadian Cattlemen, Canadian barley ending stocks for the 2025–26 crop year are projected at just 486,000 tonnes, described as a historical low. The 2026–27 ending-stock estimate rises to approximately 700,000 tonnes, but that would still be sharply below the 10-year average.

So what does this mean for Canadian cattle producers?

Here are nine important things to understand.

Tight Barley Supplies Can Keep Feed Costs Elevated Canadian feed costs

Barley is an important feed grain for Canadian cattle operations, particularly in Western Canada.

When supplies become tight, the market has to provide enough incentive for farmers to grow more barley and for existing supplies to remain available for domestic users.

The latest outlook indicates exactly that type of market environment.

For the 2026–27 crop year, Canadian barley acreage is estimated at approximately 6.5 million acres, about 6% higher than the previous year.

However, projected production is approximately 9.4 million tonnes, compared with 9.7 million tonnes in 2025.

At the same time, projected ending stocks of approximately 700,000 tonnes remain significantly below the 10-year average.

Quick answer

Why are Canadian feed costs staying high?

Because barley supplies are tight while demand remains strong, and competing feed grains such as wheat and corn also have bullish price factors.

Canadian Barley Exports Are Pulling Supplies Tighter

One of the biggest factors behind the tight barley balance is export demand.

Canadian barley exports for the crop year through the week ending May 17 were reported at approximately 3 million tonnes, compared with 1.7 million tonnes during the same period the previous year.

Exports to China and Japan have been particularly strong.

That matters to cattle feeders because grain produced in Canada does not necessarily stay in the domestic feed market.

When export demand increases, the available supply for domestic users becomes tighter.

The market then has to balance:

export demand + domestic feed demand + available supply + farmer planting decisions.

That balance ultimately influences the price cattle producers pay for feed.

Cattle-on-Feed Numbers Are Also Supporting Feed Demand

Barley isn't being used in a weak cattle-feeding environment.

The Canadian feedlot sector has also been demanding significant quantities of feed.

The latest market analysis reported that cattle-on-feed inventories in Western Canada were running approximately 10% above year-ago levels during the spring.

Domestic feed usage from August 1, 2025, through March 31, 2026, was reported at 4.9 million tonnes, about 600,000 tonnes higher than the previous crop year.

More cattle on feed generally means more demand for feed ingredients.

That creates additional pressure when grain inventories are already tight.

Wheat and Corn Prices Matter Too

It would be easy to look at the barley market and assume that barley alone determines cattle feed costs.

It doesn't.

Cattle producers have several potential feed grains available, and prices often interact with one another.

The latest outlook points to bullish factors for both wheat and corn.

Canadian and U.S. hard red spring wheat fundamentals are expected to remain relatively tight for the 2026–27 crop year.

At the same time, the forecast for U.S. corn production is lower than the previous year's output.

The original market analysis estimates U.S. 2026 corn production closer to 395 million tonnes, below the 2025 production figure of approximately 432 million tonnes.

When substitute feed grains become more expensive, barley can also maintain a stronger price.

Feed Grain Substitution Becomes More Important

When barley prices rise, cattle producers naturally start asking:

Can I use another feed grain?

Sometimes the answer is yes—but substitution should never be based simply on the price per tonne.

Different feed ingredients have different:

• energy levels

• protein concentrations

• fibre levels

• moisture content

• digestibility

• processing requirements

• inclusion limits

• storage requirements

  
  

Ontario's beef cattle nutrition guidance emphasizes that cattle rations should be balanced according to nutrient requirements and that feed ingredients can differ significantly in their nutrient composition.

For example, Ontario's nutrition information lists barley, wheat and corn among common grain feed ingredients, while also showing differences in energy and protein values.

The key lesson:Don't replace one grain with another simply because the second ingredient has a lower price per tonne.

Compare the cost per unit of usable nutrition and consider the complete ration.

The Cheapest Feed Ingredient Isn't Always the Cheapest Ration

This is one of the most important concepts for cattle producers during a high-feed-cost year.

Suppose Feed A costs less per tonne than Feed B.

That doesn't automatically mean Feed A will produce the lowest feeding cost.

You also need to consider:

nutrient value + inclusion rate + intake + performance + waste + processing + storage.

Ontario guidance notes that feed generally represents the single largest input cost associated with beef cattle production and that accurate feed analysis can help producers formulate balanced rations economically.

This is why ration formulation becomes even more important when grain markets are expensive.

Feed Efficiency Matters More When Grain Prices Rise

When feed prices are low, producers may have more room for inefficiency.

When feed prices rise, waste becomes much more expensive.

Think about the entire feeding program.

Are cattle consuming the expected amount?

Is feed being spilled?

Is the ration consistent?

Are cattle gaining weight as expected?

Is grain being processed properly?

Are forage and concentrate levels balanced?

Feed efficiency isn't just a technical measurement.

It directly affects the economics of cattle production.

A high-priced feed ingredient can potentially make sense if cattle utilize the ration efficiently and achieve the desired performance.

Likewise, a cheaper ingredient can become expensive if it leads to poor utilization or excessive waste.

Ontario Producers Should Watch More Than Ontario Grain Prices

For producers in Ontario, Western Canadian barley prices may seem far away.

But Canadian feed markets are interconnected.

Ontario cattle producers should monitor:

• local feed prices

• Ontario corn prices

• barley prices

• wheat prices

• transportation costs

• imported feed-grain prices

• cattle prices

• feedlot margins

• forage availability

  
  

Ontario publishes cattle market data that includes cattle prices, feed costs and feeder-steer margins, giving producers another useful reference when evaluating cattle-feeding economics.

The goal isn't to predict every market movement.

It's to understand how feed costs fit into the larger cattle-production equation.

A High-Feed-Cost Year Makes Feed Management More Important

When feed is expensive, producers should look beyond the ingredient invoice.

Good feed management can help control the total cost of the feeding program.

Review:

Feed storage

Keep grain and feed protected from moisture, pests and spoilage.

Feed waste

Monitor spilled feed and losses around bunks, storage areas and handling equipment.

Ration consistency

Keep the feeding program consistent and make changes carefully.

Feed testing

Know the nutritional value of the ingredients you're buying.

Animal performance

Track growth, intake and feed conversion where practical.

Purchasing strategy

Compare suppliers, delivery costs, ingredient prices and availability rather than looking only at the advertised price.

What Does the 2026–27 Barley Outlook Mean for Cattle Producers?

The simple answer is:

Don't expect cheap feed grains to solve the problem automatically.

The current outlook points toward continued pressure on Canadian feed grain prices because barley carryout remains low, export demand is strong and wheat and corn markets also have bullish factors.

The projected 2026–27 barley carryout of approximately 700,000 tonnes is higher than the 486,000-tonne 2025–26 projection, but it remains well below the 10-year average.

That means cattle producers should focus on managing the whole feeding program, rather than waiting for one particular grain to suddenly become inexpensive.

How Can Cattle Producers Control Feed Costs?

You can't control the commodity market.

But you can control how efficiently your operation responds to it.

1. Compare feed ingredients on nutritional value

Don't compare only dollars per tonne.

Look at energy, protein, fibre, moisture and other relevant nutrients.

2. Test feed when appropriate

Feed analysis can provide better information for ration formulation.

3. Reduce waste

Every kilogram of feed that gets spilled, spoiled or refused increases the effective feeding cost.

4. Monitor cattle performance

Know whether cattle are achieving your expected growth and production targets.

5. Review rations regularly

A ration that made economic sense six months ago may not be the best option after major grain-price changes.

6. Work with a nutrition professional

Significant ration changes should be evaluated carefully, particularly when switching between major feed ingredients.

Ontario guidance specifically recommends that alternative feeds be evaluated for fibre, energy, protein, minerals and vitamins and that rations be properly balanced for the cattle receiving them.

Should Ontario Cattle Producers Switch From Barley to Corn or Wheat?

Not automatically.

The right choice depends on the delivered price and nutritional value of each ingredient within the complete ration.

Ontario cattle producers may have different access to corn, barley, wheat, forage and byproducts than Western Canadian feedlots.

Instead of asking:

“Which grain is cheapest?”

Ask:

“Which ingredient provides the best economic value in my complete ration?”

That approach can produce a much more useful feeding decision.

What Cattle Feed Options Are Available at Chatham Farm Feed & Supplies?

Chatham Farm Feed & Supplies serves livestock producers in Blenheim, Chatham-Kent and surrounding Southwestern Ontario communities.

The store offers livestock feed and farm supplies from established feed manufacturers, including Masterfeeds and Jones Feed Mills.

For cattle producers, feed selection should be based on:

• cattle type

• production stage

• forage quality

• ration requirements

• feed availability

• feeding goals

  
  

If you're reviewing your cattle feeding program because grain prices are changing, contact Chatham Farm Feed & Supplies to discuss available livestock-feed options.

Call/Text: 226-774-0933

Call/Text: 519-350-5804

Key Takeaway

Canadian cattle producers are entering another feed-cost environment where grain prices deserve close attention.

Barley supplies remain tight.

Exports are strong.

Cattle feeding demand remains significant.

Wheat and corn also face supply and production concerns.

Together, these factors could keep feed costs elevated during the 2026–27 crop year.

For producers, the response doesn't have to be complicated.

Buy intelligently.

Measure feed quality.

Control waste.

Balance rations.

Monitor cattle performance.

And evaluate the complete cost of producing gain.

In a high-feed-cost market, better feed management can be just as important as finding a lower-priced ingredient.

FAQs

Why are barley prices high in Canada?

Canadian barley supplies are tight, exports have been strong and domestic cattle-feeding demand has increased. The 2025–26 ending-stock projection of 486,000 tonnes is described as a historical low.

Will barley prices remain high in 2026–27?

The current outlook points toward continued price pressure. Although projected 2026–27 ending stocks increase to approximately 700,000 tonnes, they remain significantly below the 10-year average.

Why are Canadian feed costs increasing?

Several factors can contribute, including tight grain supplies, strong exports, cattle-on-feed demand, transportation costs and prices for substitute grains such as wheat and corn.

Is barley good feed for beef cattle?

Barley is a commonly used grain for cattle feeding. However, it should be incorporated according to the nutritional requirements of the cattle and the complete ration. Ontario nutrition guidance identifies barley as one of the common grain feed ingredients available to beef producers.

Can cattle producers replace barley with corn or wheat?

Potentially, but substitution should be based on nutritional value and the complete ration rather than price per tonne alone. Different grains have different energy, protein and fibre characteristics.

How can cattle producers reduce feed costs?

Producers can focus on reducing feed waste, testing feed ingredients, improving ration accuracy, monitoring feed efficiency, comparing delivered ingredient costs and tracking cattle performance.

What is feed efficiency?

Feed efficiency describes how effectively cattle convert the feed they consume into productive weight gain or other production outcomes. Better efficiency can help reduce the amount of feed required per unit of gain.

Are feed costs important for Ontario cattle producers?

Yes. Feed is generally one of the largest input costs in beef cattle production, making feed-price management and ration efficiency important to overall farm economics.

Where can I buy cattle feed near Chatham, Ontario?

Chatham Farm Feed & Supplies serves producers in Blenheim, Chatham-Kent and surrounding Southwestern Ontario with livestock feed and farm supplies.