Australian beef is being sold in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among local producers. Some consumers, however, are pleased with the more affordable option available to them.
Tyler Fulton, the president of the Canadian Cattle Association, mentioned that Australian beef has been an alternative for consumers for some time now, especially for steak cuts. The price variation is influenced by several factors, according to Fulton.
He explained that Australian beef is typically leaner due to its grass-based production system with minimal grain feeding, resulting in less marbling. This has led to a preference for Canadian-produced beef in Canada. Additionally, retailers often use a ‘loss leader’ strategy to offer lower-priced imported beef.
Since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, Australia has gained more access to the Canadian beef market. Fulton noted that while imported beef, including Australian beef, fulfills a temporary supply gap, it may not match the quality standards of Canadian beef.
Shoppers at Loblaws-owned stores in Regina shared their perspectives on the price discrepancy. Some, like Karen Novak, have adjusted their diets due to the high cost of beef. Others, like Jordan Fieseler, opt to purchase beef in bulk from local producers instead. Despite concerns about quality, some consumers, like Larry Evans, are open to trying Australian beef if Canadian beef prices continue to rise.
In response to inquiries, Loblaws reaffirmed its support for Canadian beef producers while offering customers choices and value amidst market fluctuations. Fulton remains optimistic about domestic growth opportunities for Canadian beef producers, emphasizing the importance of catering to the local market despite potential challenges in the global trade landscape.