Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef, sparking concerns among local producers about being undercut while delighting consumers with more affordable options. Tyler Fulton, president of the Canadian Cattle Association, highlighted that the Australian beef option has been present in the market for years, gaining recent visibility, especially with steak-type cuts.
Explaining the price gap, Fulton pointed out that the Australian production model utilizes a grass-based system with a short grain feeding phase, resulting in leaner meat with less marbling, which is not as favored in Canada compared to the marbled Canadian beef. Additionally, retailers often use a ‘loss leader’ strategy to attract customers.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect in 2018, Australia has gained increased access to the Canadian beef market. Fulton noted that this agreement also benefits Canada, offering preferential access to markets like Japan and Vietnam.
While acknowledging the temporary need for imported beef to supplement supply, Fulton emphasized that Canadian producers have confidence in Australian beef standards but recognize the quality difference. Consumer reactions were mixed at local stores, with some, like Karen Novak, adjusting their diets due to beef prices, while others, like Jordan Fieseler, opt for bulk purchases from local producers.
Loblaws responded to concerns by stating that the North American cattle supply has tightened, leading to market price discrepancies, but they remain committed to supporting Canadian producers. Fulton expressed optimism about domestic growth opportunities for Canadian producers, emphasizing the importance of the local consumer market despite increasing international competition.
