Australian beef is now available in Canadian supermarkets at lower prices compared to Canadian beef, causing concern among local producers. Tyler Fulton, president of the Canadian Cattle Association, noted that Australian beef has been an option for consumers for years, with increased visibility recently, especially for steak cuts.
The pricing difference is influenced by various factors, according to Fulton. He explained that the Australian production model involves a grass-based system with a short grain feeding period, resulting in a leaner product with less marbling compared to Canadian beef. Retailers also employ a “loss leader” strategy in pricing.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018, Australia has gained increased access to the Canadian beef market. Fulton highlighted that the agreement benefits Canada as well by providing access to markets like Japan and Vietnam.
Despite the availability of Australian beef, Fulton reassured Canadian producers that the imported beef fills a temporary supply gap and does not pose a significant quality threat. Consumer perspectives were collected from shoppers at Loblaws-owned stores in Regina, with some expressing concerns about the high prices of Canadian beef leading to dietary adjustments.
While some consumers opt for locally sourced beef, others, like Jordan Fieseler and Larry Evans, consider the affordability of Australian beef as a viable option. Loblaws responded to market pricing differences by emphasizing its commitment to supporting Canadian beef producers while offering customers choices.
Looking ahead, Fulton remains optimistic about domestic growth opportunities for Canadian producers, citing recent increases in the beef cow herd. He believes that despite challenges, the Canadian beef sector is poised for continued growth due to existing incentives and market conditions.
