Australian beef is being sold in Canadian supermarkets at notably lower prices compared to Canadian beef, causing concern among some producers and delighting budget-conscious consumers. Tyler Fulton, the president of the Canadian Cattle Association, noted that Australian beef has been an option for Canadian consumers for some time now, with a recent increase in visibility, especially for steak cuts.
Fulton explained that various factors contribute to the price gap, including the grass-based production model in Australia, which results in leaner beef with less marbling, making it less preferred in Canada. Additionally, retailers may be using a “loss leader” strategy to attract customers. The access of Australian beef to the Canadian market expanded in 2018 with the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Despite the availability of Australian beef, Fulton emphasized that Canadian producers benefit from the trade deal as well, gaining access to markets like Japan and Vietnam. He mentioned that while imported beef serves a temporary need, Canadian producers maintain confidence in the quality of Canadian beef.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the pricing difference. Some consumers, like Karen Novak, have adjusted their diets due to the high cost of beef, considering it a luxury. Others, such as Jordan Fieseler, opt to buy beef in bulk from local sources for sustainability reasons.
Loblaws responded to inquiries by stating that the tightening of North American cattle supply and the rise in Australian beef production have influenced market prices. The company reaffirmed its support for Canadian beef producers while providing customers with choices and value.
Fulton expressed optimism about the growth opportunities for Canadian producers, highlighting the recent increase in the domestic beef cow herd and the potential for continued growth. He emphasized the importance of catering to the domestic market while exploring international opportunities.