New information from a reliable industry insider suggests the federal government is knowingly maintaining an archaic and non-transparent system for beef imports that is artificially inflating costs for Canadian consumers.
A Decade of Secrecy in Beef Import Controls
For ten years, since 2015, the official committee designed to advise on beef import permits—the Beef and Veal Tariff Rate Quota Advisory Committee—has not convened. This has created a significant democratic deficit, as there has been no formal mechanism for importers, retailers, or independent distributors to provide input to the government on how crucial import permits are allocated.
This lack of formal process has shifted decision-making into an informal realm, where a select few influential players, including major domestic processors with a vested interest in limiting competition, appear to have disproportionate sway. The transparency and balance once intended for the system have significantly eroded.
How the System Works and Why It's Broken
Canada regulates beef imports through a tariff-rate quota system. Under this framework, a limited amount of beef can enter the country at a low tariff rate. Any quantity exceeding this limit faces a steep import charge, making it economically unviable.
Supplemental import permits were designed to add flexibility, allowing more beef into the country when domestic supply is tight or when specialty products are needed, which should help stabilize market prices. However, the structure of this system has failed to adapt to modern economic realities.
The consequences of this opaque process are tangible. Our source described a concrete example where a long-established importer has beef sitting in bonded storage in Canada, unable to bring it to market due to permit issues, even while prices remain high for consumers.
Market Concentration and the Impact on Affordability
The problem is compounded by extreme market concentration in the beef packing sector. The industry is overwhelmingly dominated by two foreign-owned private companies: Cargill, based in the United States, and JBS, headquartered in Brazil. Together, they control the vast majority of beef slaughter and processing in Canada.
When a sector is this concentrated, and federal import controls restrict competition, the beneficiaries are clear. Any policy, whether intentional or not, that tightens access to imports further entrenches the market power of these two multinational giants.
At a time when countless Canadians are struggling with the high cost of food, this is not merely a bureaucratic issue. It is a direct and impactful matter of affordability and market fairness. Canadians deserve a system that operates openly and competitively, not one that quietly keeps beef prices high.
