Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among some producers about being undercut while delighting consumers with more affordable options. Tyler Fulton, president of the Canadian Cattle Association, highlighted the longstanding presence of Australian beef in the market, especially with steak cuts gaining visibility.
Fulton explained that various factors contribute to the price gap, including the grass-based production model in Australia, resulting in leaner beef with less marbling than Canadian-produced beef, which may not be as preferred in Canada. Additionally, retailers may be using a ‘loss leader’ strategy to promote Australian 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. Fulton noted that while imported beef, including Australian beef, helps meet short-term supply needs, Canadian producers are confident in their own quality standards.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the price disparity, with some opting for local beef producers or adjusting their diets due to cost concerns. Loblaws emphasized its commitment to supporting Canadian beef producers while offering customers choices and value.
Looking ahead, Fulton expressed optimism about domestic growth opportunities for Canadian producers, emphasizing the importance of the domestic consumer market despite increasing global competition. He highlighted recent growth in the Canadian beef cow herd and expected continued expansion due to favorable incentives.
Overall, the influx of Australian beef in Canadian markets has sparked a dialogue among stakeholders about market dynamics, consumer choices, and the future of the Canadian beef industry.