Australian beef is available in Canadian stores at significantly lower prices compared to Canadian beef.
Producers are worried about their products being undersold, while some consumers are pleased with the affordability.
The presence of Australian beef as an option has been noticeable to consumers in recent times, especially with steak cuts, according to Tyler Fulton, the president of the Canadian Cattle Association.
Explaining the price gap, Fulton mentioned various factors contributing to it during an interview with CBC Saskatchewan.
“Australian beef is produced using a grass-based system with a brief grain feeding period, resulting in a leaner product with less marbling, which is not as favored in Canada compared to the marbled Canadian beef,” Fulton explained.
He also highlighted the strategy of retailers using a “loss leader” approach as another significant factor affecting prices.
Loblaws grocery stores are selling imported beef products at a much lower price point than domestic, raising concerns about what it will mean for local producers. Canadian Cattle Association president Tyler Fulton weighs in on the cost, quality and competition in the beef market.
Since 2018, Australia has gained increased access to the Canadian beef market following the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Fulton noted that this agreement also benefits Canada by providing favorable access to markets in countries like Japan and Vietnam.
Regarding the import of Australian beef, Fulton emphasized its role in meeting short-term supply gaps, stating, “Although we would prefer Canadian beef, there is a specific need for imported beef to fill supply shortages. While we trust the standards of Australian beef, it is simply not of the same quality.”
CBC News interviewed shoppers at Loblaws-owned Real Canadian Superstore and Independent Grocer in Regina to gather their views on the situation.
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