July 26, 2010

MSA beef records firm price premium in 2009-10

The average price premiums for butchers and wholesalers selling Meat Standards Australia (MSA) beef during 2009-10 were steady compared with the previous year, according to data collected by Millward Brown's National Field Services.

The firm price premium, an increasing proportion of butchers (37%) and wholesalers (88%) selling MSA graded beef and a 27% jump in the number of MSA graded cattle (to 1.25 million head) indicates strong demand for MSA beef during 2009-10.

The growing momentum of the MSA grading programme continued in 2009-10, with the majority of beef processors applying MSA as the minimum standard to underpin the eating quality of some or all of their brands.

Over the 12 months to June, the wholesale price for MSA-graded grainfed yearling cuts was 14% higher than the non-MSA equivalents and MSA yearling grassfed prices were 16% higher than the non-MSA cuts.

At retail, the price charged for MSA graded steaks was, on average, 7.5% higher than non-MSA steaks in 2009-10, compared with an 8% premium in 2008-09.