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Australian Beef Undercuts Canadian Market, Raises Concerns

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Australian beef is available in Canadian supermarkets at significantly lower prices compared to Canadian beef. This has raised concerns among some producers about being undercut, while some consumers are pleased to have a more affordable option. Tyler Fulton, president of the Canadian Cattle Association, noted that Australian beef has been a choice for consumers for years, especially for cuts like steak.

Fulton explained that various factors contribute to the price gap, including the grass-based production model in Australia, which results in leaner beef with less marbling than Canadian-produced beef. Retailers also employ a ‘loss leader’ strategy, further affecting pricing differences.

Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in 2018, Australia has gained increased access to the Canadian beef market. While this benefits Canada in other markets like Japan and Vietnam, Fulton mentioned that imported beef serves a short-term supply need, emphasizing that Canadian producers remain confident in their standards and quality.

Shoppers at Loblaws-owned stores in Regina shared mixed reactions about the affordability of Australian beef. Some, like Karen Novak, have shifted away from higher-priced beef cuts due to budget constraints. Others, like Jordan Fieseler, opt to buy beef in bulk from local sources for sustainability reasons.

Despite concerns about quality, some consumers like Larry Evans are open to trying Australian beef if Canadian prices continue to rise. Loblaws reaffirmed its commitment to supporting Canadian beef producers while providing customers with diverse choices.

Looking ahead, Fulton expressed optimism about domestic growth opportunities for Canadian producers, emphasizing the importance of catering to the local market while exploring international prospects. He highlighted recent growth in the Canadian beef cow herd and expects this positive trend to continue due to favorable incentives for producers.

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