Canadian supermarkets are now offering Australian beef at significantly lower prices compared to Canadian beef, sparking concerns among local producers while providing more affordable options for consumers. Tyler Fulton, the president of the Canadian Cattle Association, noted that Australian beef has been a choice for consumers for years, especially for steak cuts.
Various factors contribute to the price gap, according to Fulton. He explained that the Australian production model, which emphasizes a grass-based system with short grain feeding, results in leaner beef with less marbling compared to Canadian beef, which is more preferred in the Canadian market. Additionally, retailers often use a ‘loss leader’ strategy to offer lower-priced imported beef.
The accessibility of Australian beef in Canada increased in 2018 with the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Fulton highlighted that while imported beef serves a short-term supply gap, it doesn’t match the quality of Canadian beef, which Canadian producers are confident in.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the price disparity. Some, like Karen Novak, have adjusted their diets due to the high cost of beef, opting for more affordable options. Others, like Jordan Fieseler, choose to buy beef in bulk from local producers to support the domestic market.
Loblaws responded to the concerns, stating that market pricing differences are influenced by tighter North American cattle supply and increased Australian beef production. The company remains committed to supporting Canadian beef producers while offering customers choice and value.
Fulton expressed optimism about the growth opportunities for Canadian producers, emphasizing the importance of the domestic market. Despite challenges, he believes that the beef sector is improving, with a growth in the Canadian beef herd and incentives for further expansion.
