Australian beef is being sold in Canadian supermarkets at significantly lower prices compared to Canadian beef, causing concerns among local producers. Some consumers are happy to have a more affordable option available. Tyler Fulton, the president of the Canadian Cattle Association, mentioned that Australian beef has been an alternative for Canadian consumers for quite some time now. He highlighted that the Australian beef production model, which involves a grass-based system with some grain feeding, results in a leaner product with less marbling, which may not be as preferred in Canada as the locally produced beef.
One of the reasons for the price gap is the use of a ‘loss leader’ strategy by retailers. Since 2018, Australia has had increased access to the Canadian beef market following the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This agreement also benefits Canada by providing preferred access to markets like Japan and Vietnam.
Fulton acknowledged the short-term value of importing beef to fill supply gaps but emphasized that Canadian beef producers have confidence in their standards and quality. Some shoppers at Loblaws-owned stores in Regina expressed concerns about the high prices of Canadian beef, with one shopper mentioning that beef had become a luxury item due to the cost.
While some consumers opt for local beef producers, others consider the affordability of Australian beef. Loblaws responded to the pricing differences by stating their commitment to supporting Canadian beef producers while offering customers choice and value. Fulton remains optimistic about the future growth of the domestic beef sector in Canada, emphasizing the importance of catering to the local consumer market.