Australian beef is available in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among local producers and delight among cost-conscious consumers. Tyler Fulton, the president of the Canadian Cattle Association, highlighted the longstanding presence of Australian beef in the market, especially gaining visibility with steak cuts.
Fulton explained that the pricing disparity stems from Australia’s grass-based production model, resulting in leaner meat with less marbling than Canadian beef, which is preferred by Canadian consumers. Additionally, retailers may be using a ‘loss leader’ strategy to offer Australian beef at lower prices.
The increased access of Australian beef in Canada since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018 has raised discussions about the impact on local producers. Fulton acknowledged the temporary need for imported beef to meet demand but emphasized the quality differences between Australian and Canadian beef.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the affordability of beef, with some opting for local producers due to high prices. While some consumers adjusted their diets due to beef costs, others welcomed the availability of Australian beef as a more budget-friendly option.
In response to inquiries, Loblaws stated that the tightening North American cattle supply and increased Australian beef production have influenced market pricing. The company reiterated its commitment to supporting Canadian beef producers while providing customers with diverse choices.
Fulton expressed optimism about the growth opportunities for Canadian producers both domestically and internationally. Despite the challenges faced by the beef sector in the past, he highlighted the recent growth in Canada’s beef cow herd and the positive outlook for continued expansion in the industry.