Australian beef is being sold in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among some producers while delighting consumers seeking more affordable options. Tyler Fulton, the president of the Canadian Cattle Association, highlighted the long-standing presence of Australian beef in the Canadian market, particularly gaining visibility with steak cuts.
Fulton explained that several factors contribute to the price gap, including the leaner nature of Australian beef due to its grass-based production model with minimal grain feeding, resulting in less marbling compared to Canadian beef, which is preferred in Canada. Additionally, retailers employ a ‘loss leader’ strategy to offer competitive pricing.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018, Australia has increased its presence in the Canadian beef market. Fulton noted that the agreement also benefits Canada by granting access to markets in countries like Japan and Vietnam.
Shoppers at Loblaws-owned stores in Regina expressed mixed feelings about the pricing disparity, with some opting for imported beef due to cost considerations. Karen Novak mentioned adjusting her diet due to high beef prices, while Jordan Fieseler preferred buying beef in bulk from local producers for sustainability reasons.
In response to the situation, Loblaws emphasized its commitment to supporting Canadian beef producers while offering customers choice and value. Fulton expressed optimism about domestic growth opportunities for Canadian producers despite the influx of Australian beef, emphasizing the importance of the domestic market for the industry’s success.