Australian beef is being sold in Canadian supermarkets at lower prices compared to Canadian beef, causing concern among some local producers. Consumers, however, are pleased with the affordable option. Tyler Fulton, president of the Canadian Cattle Association, noted that Australian beef has been available for years but has recently gained more visibility, especially with certain cuts like steaks.
Fulton explained that the pricing disparity is influenced by various factors, including the Australian production model, which is grass-based with a short grain feeding phase. This results in leaner beef with less marbling, which may not be as preferred in Canada compared to locally produced beef. Additionally, retailers may use a ‘loss leader’ strategy to promote Australian beef.
Since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, Australia has had increased access to the Canadian beef market. This trade deal also benefits Canada by providing preferential access to countries such as Japan and Vietnam.
Despite the presence of Australian beef in the market, Fulton emphasized that imported beef serves a short-term need and does not pose significant concerns to Canadian beef producers in terms of quality.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the issue. Some, like Karen Novak, have adjusted their diets due to the high cost of beef, while others, like Jordan Fieseler, opt for locally sourced beef in bulk. Larry Evans expressed openness to trying Australian beef if Canadian prices continue to rise.
In response to inquiries, Loblaws stated that differences in market pricing are influenced by a tight North American cattle supply and increased Australian beef production. The company remains committed to supporting Canadian beef producers while offering customers choice and value.
Fulton highlighted that Canadian producers are well-positioned for domestic growth, with optimism about opportunities abroad but a focus on serving the local market. He noted a recent increase in the Canadian beef cow herd and expects continued growth due to existing incentives for the industry.