Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concern among some producers and satisfaction among price-conscious consumers. Tyler Fulton, the president of the Canadian Cattle Association, highlighted that the Australian beef option has been present for years but has gained more consumer visibility lately, especially with steak cuts.
Fulton explained that various factors contribute to the pricing disparity, including the grass-based production model in Australia, which results in a leaner product with less marbling than Canadian beef, making it less preferred in Canada. Additionally, retailers often use a “loss leader” strategy to promote sales.
The access of Australian beef to the Canadian market increased in 2018 following the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This agreement benefits Canada as well by providing preferential access to countries like Japan and Vietnam.
While the availability of Australian beef temporarily fills a supply gap, Fulton emphasized that Canadian beef producers have confidence in their standards and quality, which may not be matched by imported beef. Shoppers at Loblaws-owned stores in Regina shared mixed opinions, with some adjusting their diets due to high beef prices.
Some consumers opt for locally sourced beef to support sustainability, while others prioritize cost savings. Loblaws reaffirmed its commitment to both Canadian producers and offering customers choices at competitive prices.
Fulton expressed optimism about domestic growth opportunities for Canadian producers, citing a recent increase in the Canadian beef cow herd and ongoing incentives for expansion. Despite international prospects, he highlighted the importance of catering to the domestic consumer market.
