Australian beef is now available in Canadian supermarkets at a lower cost compared to Canadian beef, sparking concerns among some producers and delighting budget-conscious consumers. Tyler Fulton, president of the Canadian Cattle Association, mentioned that Australian beef has been an option for consumers for several years, with recent increased visibility, especially for steak cuts.
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 beef. The use of a ‘loss leader’ strategy by retailers is also a significant factor.
Since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, Australia has gained greater access to the Canadian beef market. Despite concerns about quality, the agreement benefits Canada by granting preferential access to markets in countries like Japan and Vietnam.
While some shoppers at Loblaws-owned stores expressed difficulty affording Canadian beef, others opted for local producers or alternative protein sources due to high prices. Loblaws stated that the tightening of North American cattle supply and increased Australian beef production have impacted market prices, emphasizing their commitment to supporting Canadian beef producers while offering customers choice and value.
Fulton remains optimistic about domestic growth opportunities for Canadian producers, noting a recent increase in the beef cow herd and expecting continued growth due to favorable incentives. He highlighted the importance of catering to the domestic consumer market while exploring international opportunities for the industry’s future success.