Australian beef is being sold in Canadian supermarkets at prices lower than Canadian beef, causing concern among some producers while providing an affordable option for consumers. Tyler Fulton, president of the Canadian Cattle Association, noted that Australian beef has been available in the market for years, with recent increased visibility to consumers, especially for steak cuts.
Fulton explained that the pricing gap is influenced by various factors, such as the grass-based production system in Australia leading to leaner beef with less marbling, which may not align with Canadian preferences. Retailers also employ a “loss leader” strategy to attract customers.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018, Australia has gained more access to the Canadian beef market. Fulton highlighted that the agreement benefits Canada by providing favorable access to markets like Japan and Vietnam.
While some consumers have shifted to Australian beef due to pricing, others, like shopper Karen Novak, have adjusted their diets due to the high cost of Canadian beef. Despite the availability of options, some consumers, including Jordan Fieseler and Larry Evans, still prioritize quality over price and preference for locally sourced products.
Responding to concerns, Loblaws emphasized its commitment to supporting Canadian beef producers while offering customers choice and value. Fulton remains optimistic about domestic growth in the beef sector, emphasizing the importance of the Canadian market despite opportunities abroad.