Canadian supermarkets are now offering Australian beef at significantly lower prices compared to Canadian beef, causing concerns among local producers about being undercut. Consumers, on the other hand, are pleased to have a more affordable option available to them. Tyler Fulton, the President of the Canadian Cattle Association, noted that Australian beef has been a choice for consumers for years, 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 meat with less marbling, which may not be as preferred in Canada. Additionally, retailers often use a ‘loss leader’ strategy to attract customers with discounted products.
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 mentioned that this agreement also benefits Canada by providing access to markets like Japan and Vietnam.
While recognizing the temporary need for imported beef, Fulton emphasized that Canadian producers maintain confidence in the quality of their own products. CBC News interviewed shoppers at local stores in Regina, with some expressing concerns about the high prices of Canadian beef prompting them to opt for more affordable alternatives.
Loblaws, a major grocery chain, responded to inquiries by stating that the tightening of North American cattle supply and the rise in Australian beef production have impacted market prices. The company reiterated its commitment to supporting Canadian beef producers while offering customers a range of choices.
Looking ahead, Fulton remains optimistic about the growth opportunities for Canadian beef producers, both domestically and abroad. Despite the challenges faced by the industry in the past, recent growth in the beef cow herd indicates positive momentum for the sector.
