New information from a reliable industry source suggests the federal government is administering beef import permits in a way that may be deliberately keeping prices high for Canadian consumers. This comes at a time when many families are already struggling with the rising cost of food.
An Outdated and Opaque System
Canada manages beef imports through a tariff-rate quota system. A limited amount of beef can enter the country with low tariffs, but any volume beyond that limit faces a steep import charge. Supplemental import permits are supposed to provide flexibility, helping to stabilize the market when supply is tight or when specialty products are needed.
However, the structure guiding this process has not been updated to reflect modern realities. The key advisory body, the Beef and Veal Tariff Rate Quota Advisory Committee, has not met since 2015. This means that for nearly a decade, there has been no formal channel for importers, retailers, or independent distributors to provide input to the government on how these critical permits are allocated.
Concentrated Power and Questionable Decisions
In the absence of a formal committee, decision-making has reportedly shifted to a small, influential group that includes major domestic processors. These players have a clear vested interest in limiting foreign competition. This erodes the transparency and balance the system was originally designed to have.
The situation is compounded by extreme market concentration. The Canadian beef packing and processing sector is dominated by just two foreign-owned private companies: Cargill (U.S.) and JBS (Brazil). Together, they control the vast majority of the market. When a federal system restricts import competition, it directly benefits these dominant players.
The consequences are now becoming tangible. One established importer currently has beef sitting in bonded storage within Canada. The product is legally imported, but the importer's application for a supplemental permit to release it at the regular tariff rate was refused. The stated reason was that the beef was purchased abroad at a price deemed "too low" compared to U.S. prices—a justification that makes little economic sense, as the product did not originate from the United States and competitive pricing has never been valid grounds for rejection.
A Call for Transparency and Fair Competition
This case raises a critical question: does the federal government have an interest in maintaining high beef prices? If the goal were truly affordability, the government could issue supplemental permits when justified, restart the advisory committee, and provide clear, transparent criteria for decisions.
Instead, legitimate requests are being denied, supply is being restricted even when product is physically in the country, and both major processors and the federal government (which collects higher tariff revenue when prices are high) benefit from elevated prices.
This is fundamentally a competition issue. With two multinational giants dominating the market and appearing to influence import policy, the Competition Bureau should scrutinize the arrangement. While beef is not a supply-managed commodity, the current system increasingly functions like one.
The federal government owes Canadians answers. Why are permits being denied on questionable grounds? Why has the advisory committee been inactive for a decade? Restoring a fair and transparent system is essential to ensuring that affordability is more than just a political talking point.
