Meat Standards Australia annual outcomes report

Transcription

1 Meat Standards Australia annual outcomes report

2 Contents Overview MSA beef Beef grading MSA beef carcase compliance MSA sheepmeat Sheepmeat grading MSA sheep carcase compliance Supply chain impact Producers Wholesale Retail MSA logo refresh MSA butcher research survey Training Producer training End user training Processor training Research and development Program integrity ii

3 Overview Meat Standards Australia has surpassed the milestone of having more than 2 million cattle and 3 million sheep graded using MSA standards during This achievement has been complemented by strong growth in MSA producer registrations along with processor uptake and expansion. End user adoption of the program has increased significantly, with national and independent retailers utilising MSA. Importantly the program is resulting in clear price premiums throughout the supply chain and is leading to a greater focus on eating quality. 01

4 MSA Beef During , 2,068,530 cattle were graded through the Meat Standards Australia program, an increase of 45% compared with the fiscal year. This has been achieved through the 40 MSA licensed processors currently grading MSA beef. 02

5 All states established an increase in the numbers of cattle graded under MSA standards for the National MSA beef grading numbers 2,500, fiscal year. New South Wales 2,000,000 experienced the greatest growth in MSA beef 1,500,000 grading with an 82% increase compared to Queensland, at 1,000,000 nearly 1 million head, experienced an increase 500,000 of 43% and South Australia increased the amount of cattle MSA graded by 64% Source: Meat & Livestock Australia MSA beef grading numbers by state 1,000, , , , ,000 0 NSW QLD WA 180, , , ,000 60,000 30,000 Source: Meat & Livestock Australia SA TAS VIC 03

6 MSA beef carcase compliance Cattle graded using MSA standards during achieved 94.3% compliance to MSA specifications. This equals the compliance rate seen in Compliance rates vary greatly throughout the year based on seasonality of the different regions in Australia. Carcases not meeting MSA specifications for meat colour and/or ph (ie dark cutting) remained the greatest reason for non-compliance. Of the carcases graded against MSA standards: 3.3% ph levels exceeding ph % did not meet the meat colour specification of 1b 3 0.8% had less than 3mm rib fat. In addition to MSA specifications, some companies and brands impose further specifications based on their market requirements. Throughout , an additional 6.1% of cattle did not meet company imposed specifications. MSA non-compliance by attribute % Total non-compliance Meat colour ph Rib fat 6% 5% 4% 3% 2% 1% 0% Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Note Carcases can be recorded as not meeting specifications for multiple attributes. Source: Meat & Livestock Australia 04

7 MSA sheepmeat The MSA sheepmeat program has seen significant growth during , exceeding 3 million lambs presented for grading against MSA specifications. This can be attributed to the adoption of MSA pathways by major processors and retailers along with the development of lamb brands underpinned by MSA. During , 3,307,062 eligible lambs were processed using the Meat Standards Australia pathways. This is an increase of 2,423,929 head (274%) compared with the fiscal year. 05

8 Sheepmeat grading Processing of MSA sheepmeat occurred through 12 MSA licensed processors in WA, NSW, VIC and SA. All of these states experienced significant growth in the amount of lambs graded against MSA specifications, with New South Wales having the greatest growth of 232% against South Australia joined the MSA sheepmeat program during and contributed 24% to the national total. Of the 4,232 new MSA producer registrations processed in , 53% have become accredited to supply MSA sheep. Research and development activities have continued both on and off farm focusing on genetics, lean meat yield and eating quality improvement. In addition, pre-slaughter management and processing optimisation have been key components of the research. MSA sheep carcase compliance Lamb or sheep consigned to be graded during averaged 90.5% compliance to the MSA Standard, with 9.5% of carcases not meeting MSA or company specifications. Of the carcases graded against MSA standards: 4.2% failed company imposed specifications, which may include pelt removal damage and excessive trimming 1.8% did not meet the MSA weight specification Less than 1% did not meet the requirement for a minimum of 6mm fat at the GR site (fat score 2) National MSA sheepmeat numbers 3,500,000 3,307,062 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , , , , Source: Meat & Livestock Australia MSA sheepmeat numbers by state 1,200, ,000, , , , ,000 0 NSW WA SA VIC Source: Meat & Livestock Australia 06

9 Supply chain impact Producers During , a total of 4,232 cattle and/ or sheep producers became MSA registered to supply livestock to the MSA program. 89% of newly registered producers are eligible to supply MSA cattle. This brings the number of MSA registered livestock suppliers, throughout Australia to 23,751. Of all MSA registered producers, 13,992 are solely beef cattle producers, 8,802 are eligible to supply both beef and sheep with an additional 957 registered as sheep producers. Cattle prices Over the hooks cattle prices for MSA cattle were consistently reported in New South Wales and Queensland throughout the year. Prices for MSA yearling cattle were higher on average than non-msa yearling cattle in both states, with several supply chains now offering premiums. The average premium for MSA yearling cattle across all weight ranges was $0.19c/kg. MSA yearling cattle in Queensland received the greatest average premium of $0.24c/kg during whilst average premiums of $0.15c/kg were reported in NSW. MSA yearling cattle price differential over the hooks NSW QLD 25 /kg Steer kg Source: MLA s NLRS 14 Steer kg 15 Steer kg Heifer kg 15 Heifer kg Heifer kg 07

10 Supply chain impact End Users There are currently 319 wholesalers, 594 retailers, 221 supermarkets and 425 food service operators licensed to utilize the MSA program and trademark. During , 191 end users became MSA licensed, a 43% increase on end user licenses compared to Each end user sector receive benefits through price premiums obtained at the point of sale. Premiums received for MSA beef at wholesale have continued to increase and prices for MSA beef at retail have remained above non-msa product prices. The butcher survey conducted in May 2012 showed that MSA rump was the most purchased MSA primal by retailers (80%) followed by cube roll (76%), striploin (76%) and tenderloin (47%). Wholesale The average wholesale price differential for MSA beef across all major primals in was $1.92/kg. This price differential has increased by 24% when compared to wholesale prices in Tenderloin received the greatest price differential above non-msa beef at $3.51/kg, followed by MSA grass and grain fed cube roll, both above $3.00/kg. Grass and grain fed MSA striploin both achieved a premium greater than $2.00/kg above non-msa product of equivalent type. Average MSA price differential by primal (wholesale) $/kg Tenderloin 3.08 Cube roll (grainfed) 3.21 Cube roll (grassfed) Source: Meat & Livestock Australia 2.33 Striploin (grainfed) Striploin (grassfed) 1.61 Rump MSA price differential (wholesale) by cut $/kg Knuckle Blade Topside Tenderloin Cube roll (grainfed) Cube roll (grassfed) Striploin (grainfed) Striploin (grassfed) Rump Knuckle Blade Topside Source: Meat & Livestock Australia 8

11 Retail The average retail price differential for MSA beef across all major primal cuts in was $1.25/kg. Cube roll averaged the highest price differential at $2.77/kg, followed by butt fillet at $2.41/kg and striploin at $1.92/kg. MSA average retail price differentials $/kg Cube roll Butt fillet Source: Millward Brown Striploin T-bone With an increase in MSA beef being produced, MSA premiums continue to be evident in the retail sector across all major cuts. Rump Knuckle Silverside Blade Diced beef Stir-Fry beef MSA price differentials (retail) by cut $/kg Cube roll Butt fillet Source: Millward Brown Striploin T-bone Rump Knuckle Silverside Blade Diced beef Stir-Fry beef 9

12 MSA logo refresh During , the MSA logo was refreshed based on the program evolving to place a focus, through marketing and communications, on extending the understanding of MSA to consumers. Variations to the logo were reviewed through consumer panels conducted by an external market research agency. The resulting logo, suitable for MSA beef and sheepmeat, uses the word Graded to identify product that has met MSA specifications. This refreshed logo was shown to have the greatest resonation with consumers. Individual brands can utilize the logo to underpin their own product. Retailers and food service businesses have the option to identify their MSA products using a particular brand or the generic MSA symbol. The MSA logo refresh campaign has been supported through new point of sale material. Take the guesswork out of buying and cooking Australian Beef Take the guesswork out of buying and cooking Australian Beef Standee butcher for use to promote MSA beef specials on blackboard or clip in the MSA poster. look for this symbol Posters (A2) for use in MLA poster frames or for use on Standee Butcher. look for this symbol Choosing quality beef just got easier Ticket toppers to attach to meat tickets We sell MSA GRADED Australian Beef The Meat Standards Australia (MSA) symbol helps you take the guesswork out of buying and cooking Australian beef. Beef identified with this symbol has recommended cooking method. To Door or cabinet sign been scientifically graded against an find out more about MSA and for independent standard developed by practical tips on how to cook perfect consumers for tenderness, juiciness beef meals every time visit: and flavour to ensure you get great Print advertising campaign to promote consumer awareness of the MSA symbol tasting meals when you follow the Look for this symbol at participating stores.

13 MSA butcher research: survey In May 2012, an external market research agency was engaged to evaluate the MSA program in the retail sector, focusing on independent butcher shops. This same survey was conducted in 2010 and 2008 and similar questions were asked of each sector for comparison. The research involved: Assessing the MSA program Evaluation of the MSA program implementation and support Evaluation of MSA training Implementation of value adding and use of secondary cuts Value of MSA to independent butchers Assessing demand for MSA meat Of the 300 MSA licensed retailers surveyed across all states: 31% are purchasing MSA carcases and 72% purchase MSA carton beef. The volume of purchases for MSA rump has significantly increased since 2010 Nearly 50% of their beef products are MSA graded with grilling and roasting cuts the most popular 7% of butchers surveyed are purchasing MSA lamb, preferring to purchase full carcases 42% of butchers are selling beef or sheepmeat brands underpinned by MSA Two thirds of the butchers believe MSA is of value to their business with 32% of customers asking for MSA when purchasing meat 78% of butchers rate MSA training as good or better, with 89% stating they would recommend the training to others. This has been consistent across all surveyed years 61% have implemented value adding training principles in store, primarily with rumps and knuckles. Of these stores, 71% claim this has increased their profits 60% of butchers indicated they were utilizing MSA point-of-sale material in store, an increase from 56% in 2010 Source: THE CLEVER STUFF

14 Training Producer training Throughout , over 3,000 producers have been educated through workshops and field days about factors that impact on eating quality, the MSA program and and its implementation on-farm. Beefing Up Performance producer workshops continued in with 31 workshops delivered throughout Australia attracting 770 beef producers. An additional 66 producers participated in advanced training sessions, learning how to utilise the online MSA feedback and benchmarking system to aid them in decisions on how to optimise the eating quality of their beef. The MSA sheepmeat producer sessions delivered primarily in southern Australia provided information about MSA to over 1,800 sheep producers. This included 18 MSA workshops as well as EWETIME forums conducted by MLA. MSA attended a further 15 field days during the year to provide information to 512 producers. These workshops and information sessions have led to an increased focus on MSA for sheep. Producers were also addressed at Lambex at Bendigo, Victoria during June 2012 where there was a significant focus on eating quality. Additionally, MSA was a focus area at Beef 2012 in Rockhampton, Queensland during May. MSA training participants Beef producer workshops 836 Sheep producer workshops 379 EWETIME forums 1,500 MSA field days 512 MSA grading course 52 Meat science 37 Beef processor training 251 Sheepmeat processor training 24 End user training (beef and sheepmeat) 971 TOTAL 4,562 End user training MSA delivered 2,013 end user training programs to 971 participants in The end user training focuses on the eating quality principles underpinning the MSA program, how to implement the MSA program and comply to license requirements. Further training programs identify profitability opportunities through value adding of MSA primals and carcase utilisation principles. 44 end users completed MSA training through the online program, available to retailers and food service operators. It is a requirement that all end users complete training prior to becoming MSA licensed. Processor training Thirteen beef processors completed MSA onsite processor training, with 251 operatives participating in 600 training programs during An additional 52 participants completed the comprehensive MSA grading course in order to become qualified graders, an increase of 37% compared to Two sheep processors had 24 operatives trained in 57 programs of the MSA sheepmeat onsite training. Two Meat Science courses were conducted throughout the year with 37 participants completing the week-long intensive training. Meat Science and onsite operative training is a requirement for MSA licensed processors. AUS-MEAT Ltd is responsible for delivering all beef processor and MSA grader training. 12

15 Research and development MLA is continually reviewing products and tools that improve the ability of the supply chain to extract greater value from the MSA grading model. During , research trials commenced to evaluate the impact of long distance transport on the eating quality of beef. The trial design, will evaluate the impact on eating quality of transporting cattle 12, 24 and 36 hours as well as testing 12 hours transport, 12 hours rest (with feed) and 12 hours transport repeated across 4 different properties utilising a range of cattle breeds. Beef from these animals will be tested under the standard MSA consumer sensory testing protocol. Research outcomes are expected in early The ability to segregate carcasses to obtain a higher degree of quality and extract 4 and 5 star MSA cuts will add value to the beef supply chain of Australia. A current project based on carcase optimisation will determine the volume of carcases with 4 and 5 star quality cuts, identify the possibility of segregating these carcases and the estimated value added per carcase. A number of research projects are currently looking to quantify the potential eating quality benefit of using tenderness gene markers. Initial data analysis has indicated a positive relationship between the tenderness gene markers and eating quality in Bos indicus cattle, as well as indicating that the tenderness markers impact some muscles more than others. Further research is currently being undertaken to determine how gene markers work across the different muscles of the carcase and across varying ageing durations. Program integrity During a total of 1,627 audits, funded by industry (MLA), were conducted on licensed end users, including retail, wholesale, supermarkets and foodservice outlets, against the MSA standards. An additional 132 audits were conducted at MSA licensed processors, at the cost of the processor. AUS-MEAT Ltd are responsible for conducting the independent audits of the MSA Standards to ensure integrity of the MSA program and its trademark. The majority of issues highlighted in the audit process were classified as major non-compliance to the MSA standards. Of the 1,627 end user audits completed, 131 (8.1%) Corrective Action Requests (CARs) were raised as critical (0.2%) or major (7.9%) non-compliance due to product verification and labelling as well as training. Follow-up audits and further training assisted in the satisfactory closure of these CAR s. All MSA licensees are supported by MSA Trade Development Officers through account management processes to aid with compliance to Standards as well as identify further opportunities to gain value from the MSA program Audits Processor 132 Saleyard 25 Total 157 End user audits Wholesaler 299 Supermarket 268 Retailer 644 Food service 416 Total 1,627 CARs issued Critical 3 Major 128 Total

16 MSA PO Box 2363 Fortitude Valley BC QLD 4006 Tel: Fax: Published September 2012 MLA ABN: Level 1, 165 Walker Street North Sydney NSW 2060 Tel: Fax: