July 30, 2007

Australia's MSA beef prices recover

Price premiums of MSA (Meat Standards Australia) beef recovers in June quarter compared with prices reported during the previous quarter, according to data collected by Millward Brown's National Field Services.

The increased premiums indicate MSA beef's strong improvement in the past months despite a further increase in the quantity of MSA graded product in the market during the June quarter. Following a 10.5 percent increase in the first quarter of 2007, compared with the same period last year, the volume of MSA graded product jumped to 15.7 percent on 2006 over the June quarter. In addition, demand from processors supplying the Korean market also improved since the March quarter, as stocks declined in Korea, helping to support butt cuts and loin prices, such as knuckles, in the domestic market.

The wholesale price for MSA-graded carton sales was 1 percent higher than non-MSA carton sales from April to June. Grainfed yearling cuts were 11 percent higher than the non-MSA equivalents and yearling grassfed prices were 15 percent higher than the non-MSA types. Over the three months to June, the survey also revealed that 93 percent (unchanged on March quarter results) of wholesalers selling MSA beef thought the quality was "good to excellent".

Retail prices for MSA-graded steaks averaged 8 percent higher than non-MSA steaks - compared with a 5 percent premium over the March quarter. The MSA price premiums also recovered for cube rolls and butt fillets (to 12.5 percent and 11.5 percent, respectively), while the premium for knuckle was 5.5 percent over the June quarter.

Butchers selling MSA beef was rated "good to excellent" quality while 85 percent of non-MSA beef was also "good to excellent", according to Millward Brown.