Australia s eating quality grading system. Sarah Strachan, MSA Program Manager Janine Lau, MSA R & D and Integrity Manager
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1 Australia s eating quality grading system Sarah Strachan, MSA Program Manager Janine Lau, MSA R & D and Integrity Manager 1
2 How MSA beef meets consumers expectations Consumer testing is fundamental Rigorous measures and checks Delivering an eating quality grading system 2
3 Where does Australian beef go 74% of our beef goes to 84 countries UK 7kt swt $94 SAUDI ARABIA 11kt swt $91 CHINA 94kt swt $670 INDONESIA 61kt swt $347 TAIWAN 31kt swt $240 PHILIPPINES 29kt swt $130 JAPAN 264kt swt $1,809 KOREA 179kt swt $1,359 CANADA 19kt swt $107 US 242kt swt $1,726 Key Arrow thickness equates to volume size Negative change Y-O-Y No change Y-O-Y Positive change Y-O-Y Volume flows in '000t swt (shipped weight) A$ value in millions 3 Source: GTA
4 Beef consumption decline MSA began as an industry program in 1999 for beef Aimed at addressing a decline in red meat consumption A survey of Australian consumers showed the performance of the beef industry was unsatisfactory Per capita (kg) 4
5 Survey results Survey results in early 1990 s indicated: 38% - difficulty buying beef to the quality they desire. 57% - difficulty predicting tenderness of raw beef product. 81% believed price was a poor indicator of beef quality. More than 90% perceived fat to equal poor quality. Would buy more beef and pay more for it if satisfaction could be guaranteed. 5
6 Extremely variable climate 6
7 Distribution of feedlots and processing plants 7
8 The development of MSA 8
9 Consumer taste tests The MSA program is based on over 100,000 consumer taste tests and almost 700,000 samples. 8 cooking methods tested Consumer testing has been carried out in 9 countries Largest consumer product testing program in the world 9
10 Consumer taste tests Testing being conducted at Texas Tech in
11 Consumer taste tests Attribute Beef Tenderness 30% Juiciness 10% Flavour 30% Overall liking 30% 11
12 Consumers identified grades 4 Fail
13 Predicting consumers around the world US example 3 USA Cities Lubbock TX, Phoenix AZ & Washington DC. Grill & roast cooking methods 240 consumers per cook per city (Total 1440) 10,080 samples of beef 4 cuts Tenderloin, Striploin, Top Sirloin & Round Half Australian/ Half U.S. beef 13
14 Predicting consumers around the world US example What consumers considered to be the EQ threshold Is there a difference between cities? Lubbock TX 42.9 Phoenix AZ 43.1 Washington DC 41.6 Is there a difference between ages? <30years 42.4 >30years 42.8 Is there a difference between gender? Female 42.3 Male 42.9 Is there a difference between Australians and US consumers (grill) Australians 42.7 US
15 How MSA beef is produced 15
16 Paddock to plate integrity MSA Standards applied to each part of the supply chain ISO accreditation 16
17 Integrity of MSA grading Graders become trained and accredited by AUSMEAT Assessment every 8 weeks Processors independently audited 17
18 Grading demonstration - video 18
19 Tropical breed content ~ 40 breeds of cattle in Australia All breeds eligible for MSA grading Bos indicus content - negative impact on eating quality Breed Striploin Eye of knuckle Brahman (100%) Brahman x Angus (50%) Angus (0%)
20 Hang method Cut Achilles Tenderstretch Difference Tenderloin Cube roll Striploin Rump Topside Bolar blade
21 MSA Marbling Increased juiciness and flavour. Scored from 100 to 1190 (amount and distribution). MSA marbling score Rump Striploin
22 Carcase maturity Cartilage turning to bone to indicate physiological maturity Scored Increase in ossification = decrease in eating quality Ossification vs dentition 22
23 High ph is excluded from MSA High water holding capacity = less juicy Increased bacterial growth = reduced shelf life Cooking inconsistencies - High ph steaks will appear rarer = consumer dissatisfaction with degree of doneness MSA requirement ph to be less than 5.71
24 Cause of dark cutting ph u = 5.5 ph u = 6.04 glycogen at slaughter
25 Minimising stress on-farm requirements 1.Cattle kept on property for minimum of 30 days before dispatch 2.Cattle running as one mob for minimum of 14 days before dispatch 3.No mixing of cattle within 14 days of dispatch 4.Best practice stock handling to minimise stress 5.Cattle should be continually grazed or fed rations for growth for a minimum of 30 days prior to dispatch.
26 Monitoring ph decline
27 ph decline monitoring 27
28 Fat coverage Minimum 3mm rib fat Adequate fat distribution over major primals 28
29 Non-EQ measurements 29
30 Ageing Ageing occurs as the muscle fibres in meat slowly breakdown through enzyme action Muscle fibres weakened = Increase in tenderness Ageing can occur on the bone or through vacuum packaging Meat does not age when frozen Minimum 5 days and predict up to 35 days 30
31 Cut x cook eating quality system Attribute Measurement Tropical breed content 0% Animal sex type M Hormone Growth Promotant N Milk fed vealer N Carcase weight 350kg Hang method Achilles tendon Hump height 50mm Ossification 150 MSA marbling 350 Rib fat thickness 5mm Ultimate ph 5.55 Loin temperature 3 C Maturation 14 days 32
32 Translating eating quality information to customers What eating quality level do you want? What cook method do you intend to use? PKD ON 17-APR-2014 BEST BEFORE 29-MAY 2014 How long do you intend to age the product for? 33
33 Identifying MSA product 34
34 MSA on menus * * Meat Standards Australia (MSA) is an independent grading system that ensures tender, juicy beef. Menu items identified with the MSA symbol have been graded to ensure you always enjoy a great tasting steak! 35
35 The adoption and value of MSA
36 Return on Eating Quality Investment 5 years MLA Eating Quality Program - MSA Increased numbers of cattle graded Increased processor and end user adoption to 54 processors Increased premiums paid to producers doubled for grassfed beef producers to $0.33/kg HSCW Improved consumer satisfaction with eating quality of red meat
37 % Australian slaughter MSA graded carcases Almost 40% of Australian cattle slaughter is MSA graded 3.1 million cattle graded in MSA licensed beef processors 40% 35% 30% 25% 20% 15% 10% 5% 0%
38 Beef compliance MSA compliance is 93% Grass = 88%, Grain = 98% Additional 3.2% fail to meet company specifications Dark cutting remains main reason for non-compliance High ph 72% of ungrades Inadequate fat coverage - 20% of ungrades
39 Producer are rewarded for MSA performance Average premium for MSA yearling (OTH) was $0.24/kg above non-msa yearling = ~$67/head Average premium for MSA grainfed was $0.15/kg = ~$45/head Additional farm gate returns = $153 million Premiums come from NLRS comparing MSA YG to non-msa YG on a weighted average
40 MSA underpins 155 Australian brands
41 Retailer use of MSA
42 Retail adoption
43 Retail price differentials $4.00 $ for MSA beef $ $ $0.00 $2.00 $1.50 $1.63 $1.53 $1.63 $1.73 $1.00 $1.38 $1.07 $1.15 $
44 Current participation Producers Processors Brands End users 47, Figures as of 31 May 2017
45 Consumers are willing to pay for quality
46 Making it easier to improve eating quality
47 Introduction of the MSA Index? MSA Index = A weighted MSA score for the carcase Each carcase is assigned an Index between 30 and 80 Average for = 57.52
48 Impact of making changes Carcase Input or Measure Size of effect on the MSA Index (units) Relative Importance HGP Status -5 Very High Milk-fed Vealer 4 Very High Saleyard -5 Very High MSA Marbling 0.15 High Hump Height -0.7 High Tropical Breed Content Between 0 and -6.3 Very High Ossification 0.6 High Rib Fat 0.1 Medium Hot Standard Carcase Weight 0.01 Low Gender 0.3 Low
49 Current situation for Australian eating quality Band Index Top 1% Top 10% Bottom 1%
50 MSA index calculator
51 mymsa producer feedback
52 Creating confidence in beef 1. MSA an endorsement of brand quality assuring quality and consistency. 2. MSA grades are based on extensive consumer taste tests 3. Paddock to plate integrity which is independently audited 4. MSA can accurately predict satisfaction for global consumers. 5. Allows trade and consumers to purchase with confidence
53
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