Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef, raising concerns among producers while providing consumers with a more affordable option. Tyler Fulton, the president of the Canadian Cattle Association, noted that Australian beef has been an option for consumers for years, with a recent increase in visibility, especially for steak cuts.
Fulton explained that the price difference is influenced by various factors. Australian beef is produced using a grass-based system with short grain feeding at the end, resulting in a leaner product with less marbling, which may not be as preferred in Canada compared to domestically produced beef. Additionally, retailers may be using a ‘loss leader’ strategy to offer Australian beef at lower prices.
Since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, Australia has gained increased access to the Canadian beef market. While this benefits Canada in accessing markets like Japan and Vietnam, Fulton emphasized the importance of imported beef in filling short-term supply gaps, acknowledging that Australian beef, while meeting standards, may not match the quality of Canadian beef.
Shoppers at Loblaws-owned stores in Regina expressed mixed sentiments about the affordability of beef, with some opting for cheaper alternatives due to high prices. However, others highlighted the importance of quality over cost and expressed willingness to try Australian beef in the future.
In response to market dynamics, Loblaws stated its commitment to supporting Canadian beef producers while providing customers with choice and value. Fulton remains optimistic about the growth opportunities for domestic producers, emphasizing the importance of the Canadian consumer market despite increasing competition from imported beef.