Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef. This situation has raised concerns among some producers who fear their products are being undercut, while some consumers are pleased to have a more affordable option to choose from. Tyler Fulton, the president of the Canadian Cattle Association, mentioned that Australian beef has been an option for consumers for several years, gaining more visibility recently, especially with certain steak cuts.
Fulton explained that various factors contribute to the price gap between Australian and Canadian beef. He highlighted that the Australian production model is primarily grass-based with a short grain feeding period, resulting in a leaner product with less marbling, which may not be as preferred in Canada compared to domestically produced beef. Additionally, retailers often use a “loss leader” strategy to sell Australian beef at lower prices.
Since 2018, Australia has had increased access to the Canadian beef market under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This trade deal has also benefited Canada by providing preferential access to markets such as Japan and Vietnam. Despite the influx of Australian beef, Fulton emphasized that there is still a need for imported beef to fill short-term supply gaps, even though Canadian producers maintain confidence in the quality of their own products.
Consumer perspectives were gathered from shoppers at Loblaws-owned stores in Regina. Some mentioned that the high prices of Canadian beef have led them to opt for other protein sources or purchase beef in bulk from local producers. Others expressed interest in trying Australian beef if Canadian prices continue to rise.
In response to inquiries, Loblaws stated that the tightening supply of North American cattle and the increased production of Australian beef have influenced market pricing differences. The company affirmed its commitment to supporting Canadian beef producers while offering customers a range of choices at competitive prices.
Looking ahead, Fulton remains optimistic about the growth opportunities for Canadian beef producers, both domestically and internationally. He highlighted the recent increase in the Canadian beef cow herd and anticipates continued growth due to favorable market conditions and incentives for the industry.