Australian beef is now available in Canadian supermarkets at prices lower than Canadian beef, sparking concerns among some producers and delighting consumers seeking more affordable options. Tyler Fulton, president of the Canadian Cattle Association, noted the longstanding presence of Australian beef in the market, particularly gaining visibility with steak cuts.
Fulton explained that various factors contribute to the price gap, including Australia’s grass-based production model, which results in leaner beef with less marbling compared to Canadian beef. The utilization of a ‘loss leader’ strategy by retailers further impacts pricing dynamics.
Access to the Canadian beef market expanded for Australia in 2018 under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Fulton highlighted the reciprocal benefits for Canada under the agreement, granting preferential access to markets like Japan and Vietnam.
While acknowledging the temporary role of imported beef in addressing supply shortages, Fulton emphasized the superior quality of Canadian beef. Consumer sentiments were captured at Loblaws-owned stores in Regina, where some expressed difficulty affording Canadian beef and opted for alternatives like Australian beef or locally sourced options.
Responding to inquiries, Loblaws reaffirmed its commitment to both Canadian producers and offering customers diverse choices. Fulton expressed optimism about the growth opportunities for Canadian producers, emphasizing the importance of catering to domestic consumers while exploring international markets.