Australian beef is available in Canadian supermarkets at significantly lower prices compared to Canadian beef. This situation has raised concerns among some producers who feel their products are being undercut, while some consumers are pleased with the affordable option. Tyler Fulton, the president of the Canadian Cattle Association, noted that Australian beef has been a choice for consumers for several years, especially with steak cuts gaining more visibility recently.
Fulton explained that the price disparity is influenced by various factors, including the production methods. Australian beef typically follows a grass-based system with a brief grain feeding period, resulting in a leaner product with less marbling compared to Canadian beef. Additionally, retailers often use a ‘loss leader’ strategy to promote sales.
Since 2018, Australia has had increased access to the Canadian beef market due to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Fulton mentioned that while imported beef, like Australian beef, serves a temporary supply need in Canada, it may not match the quality standards of Canadian beef.
CBC News interviewed shoppers at Loblaws-owned stores in Regina to gather consumer perspectives on the availability of Australian beef. Some shoppers, like Karen Novak, have adjusted their diets due to the high prices of Canadian beef, opting for more affordable alternatives. On the other hand, Jordan Fieseler prefers buying beef in bulk from local producers, emphasizing sustainability and supporting local businesses.
Loblaws responded to CBC’s inquiry by stating that the tightening supply of North American cattle and the increase in Australian beef production have led to market price differences. The company reaffirmed its commitment to supporting Canadian beef producers while offering customers choice and value. Fulton expressed optimism about the growth opportunities for Canadian producers domestically, highlighting the recent increase in the Canadian beef cow herd and the potential for continued growth in the sector.