Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among some producers about undercutting their products. On the other hand, some consumers are pleased to have a more affordable option.
Tyler Fulton, the president of the Canadian Cattle Association, noted that Australian beef has been a choice for consumers for several years, with recent increased visibility, especially for steak cuts. He explained that the lower prices of Australian beef can be attributed to their production model, which involves a grass-based system with a short grain feeding phase, resulting in leaner meat with less marbling compared to Canadian beef.
Fulton mentioned that retailers often use a “loss leader” tactic to offer imported beef at lower prices. Since 2018, Australia has gained more access to the Canadian beef market through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
While imported beef, including Australian beef, fills a temporary supply gap in the Canadian market, Fulton emphasized that Canadian producers are confident in the quality of their beef. The CPTPP also benefits Canada by providing preferred access to markets in countries like Japan and Vietnam.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the situation, with some adjusting their diets due to the high prices of Canadian beef. One shopper, Karen Novak, mentioned switching to ground beef due to cost concerns.
Jordan Fieseler opts to buy beef in bulk from local producers, highlighting the importance of sustainable and local options. Other consumers like Larry Evans are open to trying Australian beef in the future if Canadian beef prices continue to rise.
In response to inquiries, Loblaws stated that the North American cattle supply has decreased while Australian beef production has risen, leading to pricing differences. The company reiterated its commitment to supporting Canadian beef producers and offering customers choice and value.
Fulton expressed optimism about the growth opportunities for Canadian producers, emphasizing the importance of the domestic market despite expanding opportunities abroad. He highlighted the recent growth in the Canadian beef cow herd and anticipated further growth due to favorable incentives in the industry.
