Australian beef is now available in Canadian supermarkets at lower prices compared to Canadian beef, causing concern among some local producers. The affordability of Australian beef has made it a popular choice for consumers seeking budget-friendly options. Tyler Fulton, the president of the Canadian Cattle Association, mentioned that Australian beef has been present in the market for years, with a recent increase in consumer awareness, especially regarding steak cuts.
The price gap between Australian and Canadian beef can be attributed to various factors, as explained by Fulton in an interview with CBC Saskatchewan. He highlighted that the Australian production model is primarily grass-based with short grain feeding, resulting in a leaner product that lacks the marbling preferred by Canadian consumers. Retailers also use a “loss leader” tactic to influence pricing.
Australian beef gained increased access to the Canadian market in 2018 through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). According to Fulton, this agreement benefits Canada by providing preferred access to markets like Japan and Vietnam. Despite the influx of Australian beef, Fulton emphasized that it serves a short-term need and does not match the quality standards of Canadian-produced beef.
Local shoppers at Loblaws-owned stores shared their perspectives on the availability of Australian beef. Karen Novak mentioned adjusting her diet due to the high prices of Canadian beef, considering it a luxury item. In contrast, Jordan Fieseler opts to purchase beef in bulk from local producers for sustainability reasons. Larry Evans expressed openness to trying Australian beef if prices continue to rise, emphasizing the importance of quality and cost in consumer choices.
Loblaws responded to inquiries, stating that the North American cattle supply has decreased while Australian beef production has risen, leading to pricing discrepancies. The company remains committed to supporting Canadian beef producers while offering customers diverse choices. Fulton highlighted the positive outlook for domestic growth in the Canadian beef industry, emphasizing the importance of catering to local consumers despite expanding opportunities abroad.