A peculiar thing occurred in the B&H Foodliner in Kemptville, the same thing that is occurring in supermarkets across the province. The meat display cases are filled with Alberta beef.

There’s some local beef but it isn’t labeled as local and the local butcher is puzzled. Why is Alberta beef three per cent to five per cent cheaper than Ontario beef?

Other questions need to be asked. First, why is there so much Alberta beef in Ontario? The United States launched Country of Origin Labeling (COOL) last year and that didn’t hurt Ontario exports that badly, says Paul Stiles, assistant manager of the Ontario Cattlemen’s Association. The high dollar was worse. But COOL did affect the western feeder industry as the Canadian export market for feeders dropped from 557,000 head in 2008 to 255,000 in 2009, a cut of 54 per cent. The obvious place for western Canada to look for a new market was Ontario and Quebec.

That among other things has left Ontario with a huge problem. John Newman, a former executive member of the Ontario Cattlemen’s Association (OCA), says Alberta has the money to promote its beef and Ontario hasn’t. First, money from Alberta’s check off is three times as much as Ontario’s and the Alberta government anticipating the current beef surplus put up $350 million into the development of their industry and markets last year.

Ontario Corn fed beef, Ontario’s response to western beef branding, had been making its way into Ontario markets and had a 1,500-head contract with Loblaws but only 100 head fitted the criteria, forcing producers to scramble to find local buyers. Eastern Ontario OCA cow-calf representative Rick Hobbs says feedlot operators made a little money growing cattle to 1,800 pounds but were losing money at the weight Loblaws required.

Loblaws wanted the steaks to fit on a pre-sized styrofoam plate, which meant they wanted a heifer at about 1,200 lbs. and a steer between 1,350 lbs. and 1,400 lbs.

Ontario cattlemen are still selling beef to Loblaws but failure to meet market contracts has hurt and will hurt more in the long run.

There’s no problem with the quality of Ontario beef, Newman says. Test after test with taste panels have shown the public could not taste a difference. But that’s not public perception and what branding does is change and maintain public perception. And that’s what’s favouring Alberta beef right now. Alberta beef is winning the war of image and supply.

What are we doing about it?

Unable to garner public perception and playing a minor role on supermarket shelves, the Ontario beef industry had to make radical changes. Foodland Ontario advertising created a local surge, and everyone was discussing buying local. But the thrust failed provincially in most areas for beef because there was a lack of dedicated leadership, Newman said. There simply weren’t enough people to give of their time, to do the grass root organizing on a large enough scale. Not enough marketing co-operatives were formed to make a difference.

Marketing locally is no easy thing, Newman said. "As soon as you try to find dedicated leaders it all falls apart. I’m not blaming anyone. Farmers are used to putting cattle on a truck and waving at them as they go down the lane."

Farmers can improve their lot by eliminating some of the links in the supply chain. Newman says raising a calf to market cuts the number of transactions from three (calf raising, backgrounding, feedlot sales) to one and the amount of trucking is reduced. The total cost drops from $168 to $44 per animal, he says.

They can improve the profitability more but that will take a radical makeover. A farmer can earn $1,200 more on a 1,400 lb. steer carcass by slaughtering and marketing it himself, Hobbs says. Some farmers have started to "cut and wrap" but few have embraced the new entrepreneurial style, moving their marketing a step up from a farmers’ market. That means spending half or more of your time on marketing and further processing. Successful examples include home delivery, on-farm stores, and processing to sell, among other things, pre-packed sausages and boxed meat pies. None of that is easy.

Lastly, how can Alberta sell its beef so cheaply?

At current prices, they can’t pencil a profit and still pay the shipping costs. But Alberta has had a surplus of product and had to dump it somewhere. Moreover, a lower price is a good way to gain more market share, although everyone grumbles about "dumping".

There is yet another reason Alberta is dominating Ontario supermarkets. The Ontario government has never stepped up to the plate to protect its industry or help the industry reorganize the way the Alberta and Quebec governments have, leaving survival on Ontario beef farms precarious at best.