Why is Australian beef cheaper than Canadian beef?

With Australian beef cheaper for shoppers to add to their grocery carts than beef produced inside Canada’s borders, a Saskatchewan beef expert is weighing in on considerations for consumers.

Jeffrey Yorga, past president of the Saskatchewan Stock Growers Association, said the beef market is global, but that doesn’t make all beef equal. He said the difference in price between the two products has less to do with how far it travels than with its quality.

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“Australian beef is not the same as Alberta beef or anything that’s produced in Canada,” Yorga said.

He said Australian beef isn’t graded, so consumers can’t be as certain of the quality of what they’re buying as they can be with Canadian options.

“A cut is a cut, but they’re not all the same at a store shelf, and so it’s not like comparing apples to apples,” Yorga explained.

Yorga said beef coming from Australia is often grass-run, non-age-verified, no-finish commodity beef.

“AAA Canadian beef stands on its own in the world market,” Yorga stated. “It’s not the same product.”

Yorga said Canadian beef quality is graded at levels like A, AA, AAA or prime. It’s also age-verified, meaning Canadian beef is guaranteed to come from younger animals. He added that Canadian beef has also has marbling level requirements to ensure a better eating experience.

“The Australian beef that you’re seeing on the store shelves has none of that,” he said. “It’s not age verified and there’s no minimum level of marbling requirement to be there… It could be from a young, youthful animal. It could be from an old cow.”

The difference in price doesn’t concern Yorga, who noted that the stock growers association has always advocated for free trade.

“When we’re in a situation right now where the price of beef to the consumer is higher than it’s ever been, we have to be mindful of that,” he said.

He said stores providing cheaper alternatives to consumers is positive, but it’s also something to be aware of within the industry.

Yorga encouraged all consumers to look for Canadian beef, and said cost-conscious shoppers can also try different methods of cooking and marinating to improve cheaper cuts of meat.

“You can still have a great eating experience if it’s prepared properly,” he said, adding that he stands by the quality of a AAA Canadian ribeye compared to a commodity ribeye.

Yorga said a lack of supply in the beef industry is the reason for the rising prices. Over the past 25 years, he said many ranchers have left the business because of how “incredibly cheap” beef was.

“The cows aren’t there anymore to produce the beef, in Saskatchewan specifically, and in western Canada,” he said.

“We’ve been in close to 10 years of drought conditions, which has exacerbated the situation.”

The drought conditions have made cattle herds smaller, and without a growing herd Yorga said he doesn’t expect the price of beef to decline “for quite some time.”

Yorga said the stock growers association is glad to see beef on the plates of Saskatchewan consumers, despite the rising costs.

“Beef has become more expensive. We’re keenly aware of that,” he said.

“What I do know is that folks that have purchased cheaper Australian beef only do it once,” he said.