The Food Professor Profile picture
Sep 20 6 tweets 1 min read Read on X
We are having affordable Australian steak tonight.

And it's amazing...

Ever wonder why Australian steak can sell for less in Canada than Canadian steak—even in Canadian grocery stores?

Let’s break it down. 👇 Image
1️⃣ High domestic costs

Canadian beef is produced under strict health, feed, and environmental standards. Add in land, labour, feed, transport, carbon taxes… all of it drives up prices...
2️⃣ Australia’s model

Australia is one of the world’s largest beef exporters.

➡️ Grass-fed, large-scale ranching
➡️ Lower production costs
➡️ Exporting built into their system

That’s why their steak often lands cheaper here...
3️⃣ Trade & currency

Thanks to trade deals like the CPTPP, tariffs on Aussie beef are falling.

Plus: if the Australian dollar is weak vs the Canadian dollar, their exports look even cheaper on our shelves...
4️⃣ Retailer strategy

Grocers like to offer imports as a “value” option. That way, they pressure Canadian packers and give shoppers a cheaper choice...
5️⃣ The paradox

Canadian beef fetches top dollars abroad (Japan, U.S., etc). Packers prioritize exports.

Result? Imports fill the gap at home—and sometimes cost less than local product.

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More from @FoodProfessor

Jan 6
THREAD: Why Tombe & Winter's Paper on Carbon Pricing and Food Prices Falls Short.

The paper claims carbon pricing has a minimal impact on Canadian food prices (0.5%)—but here’s why its methodology and conclusions are flawed.

Let's break it down. 👇 #CdnPoli #CarbonTax
1/ Overly Simplistic Modelling

The authors rely on an input-output model that assumes static production methods and cost shares. This ignores how businesses might adapt by adopting more efficient technologies or practices in response to carbon pricing.

Ironically, both Tombe & Winter have argued for considering such adaptive behaviours in other work. Why ignore it here?
2/ Cost Pass-Through Assumptions

The paper assumes that any cost increases from carbon pricing are fully passed on to consumers. This overestimates impacts in competitive sectors (like certain crops) and underestimates them in concentrated sectors (e.g., dairy or meat).

The reality? Cost pass-through rates vary widely, especially in Canada’s complex agri-food supply chains.
Read 12 tweets
Oct 29, 2023
How many reporters contacted Statistics Canada to inquire about anomalies in the food pricing databases?

Not a single one... Image
At least 17 products have exhibited two different prices between 2017 and 2022, with 14 of them currently reflecting lower prices ranging from 2% to 25%...
Discontinued food price table: …

New food price table: www150.statcan.gc.ca/t1/tbl1/en/tv.…
www150.statcan.gc.ca/t1/tbl1/en/tv.…
Read 5 tweets
Mar 5, 2023
Perspective (follow thread): The average family of four in Canada will likely spend about $1,050 more on food in 2023 for the entire year.

Top Canadian grocers, made $3.4B in net profit last year...
Payments for a $300,000 mortgage (5y variable rate) is now $520 more per month, compared to last year. That's $6,240 a year more, for shelter. More than 5 million Canadians have a mortgage with a variable rate in Canada.

Canadian banks made $50.4B in net profit last year...
Credit cards. A recent study suggests Canadians paid more than $11B for credit card costs passed along by merchants…and banks. In return, Canadians received a little less than $3.5B in rewards...
Read 8 tweets

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