Australian beef is now available in Canadian stores at lower prices compared to local Canadian beef, sparking concerns among producers about undercutting. However, some consumers are pleased with the cost-effective option. Tyler Fulton, the president of the Canadian Cattle Association, noted that Australian beef has been an alternative for years but has gained more visibility recently, particularly for steak cuts.
One of the reasons for the price gap, according to Fulton, is the production method in Australia, which involves a grass-based system with limited grain feeding, resulting in leaner meat with less marbling than Canadian beef, which is preferred locally. Additionally, retailers may be using a ‘loss leader’ strategy to promote Australian beef.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has provided Australia greater access to the Canadian beef market since 2018. Fulton highlighted that this agreement also benefits Canada by granting preferred access to markets like Japan and Vietnam.
While acknowledging the temporary need for imported beef to supplement supply, Fulton emphasized that Canadian producers are confident in the quality of their beef compared to Australian imports. Consumers at local stores expressed mixed feelings about the pricing, with some opting for local beef despite the higher cost, while others consider switching to Australian beef due to affordability.
In response to the situation, Loblaws reaffirmed its commitment to backing Canadian beef producers while offering customers diverse choices. Fulton expressed optimism about the growth opportunities for Canadian producers, emphasizing the importance of the domestic market despite expanding international prospects.