Australian beef is now available in Canadian supermarkets at significantly lower prices compared to Canadian beef, raising concerns among some producers about undercutting and delighting consumers seeking affordable options.

Tyler Fulton, president of the Canadian Cattle Association, highlighted that Australian beef has been a choice for consumers for a while now. He mentioned that recent visibility of Australian beef, especially in steak cuts, has increased consumer awareness.

Explaining the price gap, Fulton pointed out that the Australian beef production model is grass-based with a short grain feeding period, resulting in leaner meat with less marbling compared to Canadian beef, which is more preferred in Canada. Retailers are also utilizing a “loss leader” strategy, impacting pricing differences.

Since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, Australia has gained more access to the Canadian beef market. Fulton noted that while imported beef, like the Australian option, fills a temporary supply gap, it does not match the quality of Canadian beef.

Shoppers at Loblaws-owned stores shared their perspectives on the price discrepancy. Some, like Karen Novak, have shifted away from beef due to high prices, while others, like Jordan Fieseler, opt for local beef producers despite the cost. Larry Evans highlighted the importance of quality and cost in consumer choices.

In response to CBC’s inquiry, Loblaws emphasized their commitment to supporting Canadian beef producers while offering customers value and choice amid changing market dynamics. Fulton expressed optimism about domestic growth opportunities for Canadian producers despite international competition, emphasizing the importance of the domestic market for the beef sector’s profitability and sustainability.