June 28, 2023

Canada's beef imports from Europe decrease, while exports show promise

In a notable shift from the past five years, Canada is witnessing a decline in its beef imports from Europe this year, but exports have increased, SaskToday reported.

Between January and April, the country purchased CAD 25 million (~US$18.9 million; CAD 1 = US$0.76) worth of beef from European Union (EU) countries, marking a 34% decrease compared to the CAD 38 million (~US$28.7 million) imported during the same period in 2022.

This decline in beef imports from Europe represents a temporary change in trading patterns. From 2018 to 2022, Canada experienced a significant increase in the amount of beef entering the country from EU nations such as Spain, Ireland, and Italy.

In 2018, EU beef shipments to Canada were valued at CAD 15 million (~US$11.3 million), and by 2022, that figure had surged to CAD 114 million (~US$86 million), primarily driven by the Canada European Union Trade Agreement (CETA) signed in 2017.

Conversely, Canada has faced challenges in exporting beef to Europe, despite being granted a 65,000-tonne tariff-free quota under the CETA deal. Technical barriers, including objections to carcass washes used at Canadian packing plants, have hindered Canadian beef's entry into the European market.

While Canada's deficit in beef trade with Europe exceeded CAD 80 million (~US$60 million) in 2022, the first four months of 2023 have shown more promising results for Canadian exporters in the EU market.

Beef exports to Europe during this period amounted to CAD 10.7 million (~US$8 million), a substantial 73% increase from CAD 6.2 million (~US$4.6 million) in the same period the previous year. Canada is expected to reach CAD 30 million (~US$22.6 million) in beef sales to the EU in 2023, the highest amount since the enactment of CETA.

The European market presents lucrative opportunities for Canadian exporters due to strong prices. Data from cdnbeefperforms.ca reveals that the average price of Canadian beef exported to the Netherlands stands at CAD 19.63 (~US$14.85) per kg, significantly higher than the price per kg of beef shipped to Japan, which is CAD 10.35 (~US$7.83).

-      SaskToday