Australian beef is being sold in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among some producers about undercutting their products while offering a more affordable option for consumers. Tyler Fulton, the president of the Canadian Cattle Association, noted the long-standing presence of Australian beef in the Canadian market, especially with steak cuts gaining visibility recently.
Fulton explained that several factors contribute to the price gap, including the grass-based production model of Australian beef, resulting in a leaner product with less marbling that may not align with Canadian preferences. Additionally, retailers often employ a “loss leader” strategy to attract customers with lower-priced imported beef.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018, Australia has had increased access to the Canadian beef market. While this benefits Canada in other markets like Japan and Vietnam, Fulton emphasized the need for imported beef to meet short-term supply gaps, even though it may not match the quality standards of Canadian beef.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the affordability of beef, with some opting for imported beef due to cost considerations. Karen Novak mentioned adjusting her diet due to high beef prices, while Jordan Fieseler preferred buying beef in bulk from local producers. Larry Evans highlighted the importance of quality and cost in consumer choices, indicating a willingness to try Australian beef if Canadian prices continue to rise.
Loblaws reaffirmed its commitment to supporting Canadian beef producers while offering customers choices and value amid market dynamics favoring Australian beef. Fulton expressed optimism about domestic growth opportunities for Canadian producers, emphasizing the importance of catering to the local consumer market despite potential challenges from imported beef.
