Australian beef is available in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concern among some producers while delighting cost-conscious consumers. Tyler Fulton, president of the Canadian Cattle Association, noted the long-standing presence of Australian beef in the market, particularly in steak-type cuts gaining consumer visibility.
The price gap is attributed to various factors, including the grass-based production model in Australia, resulting in a leaner product with less marbling compared to Canadian beef. Retailers also employ a ‘loss leader’ strategy to offer Australian beef at competitive prices.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018, Australia has increased its presence in the Canadian beef market. Fulton mentioned that while imported beef fills a temporary supply gap, Canadian producers maintain confidence in their product quality.
Consumer perspectives were sought at Loblaws-owned stores in Regina, revealing mixed sentiments. Some, like Karen Novak, have shifted away from beef due to high prices, opting for alternatives. Meanwhile, others, like Jordan Fieseler, choose to buy beef in bulk from local sources despite the cost difference.
Loblaws emphasized its commitment to supporting Canadian beef producers while offering customers a range of choices, including Australian beef. Fulton expressed optimism for domestic growth in the cattle industry, highlighting recent profitability increases and a growing beef cow herd in Canada.
