Advanced Search
MyIDEAS: Login to save this article or follow this journal

The aggregate economic benefits to the Australian beef industry from the adoption of meat standards Australia: updated to 2010/11

Contents:

Author Info

  • Griffith, Garry R.
  • Thompson, John M.
Registered author(s):

    Abstract

    Meat and Livestock Australia and the Cooperative Research Centre for Cattle and Meat Quality funded a major R&D program in the mid 1990s to investigate the relationships between observable beef and cattle characteristics, cooking methods and consumer appreciation of beef palatability. Out of this R&D program grew the Meat Standards Australia (MSA) voluntary meat grading system which was aimed primarily at providing an accurate prediction of beef eating quality for the domestic market. The MSA system commenced operations in 1999/2000. The gross benefits associated with using the MSA system were quantified by using data on the number of carcases graded and certified, a survey of retailers and wholesalers based on prices for MSA graded beef (3 star or better) versus ungraded beef, and market reports of prices paid for MSA quality cattle versus non-MSA quality cattle. Over the period 2004/05 to 2010/11, beef consumers across Australia were prepared to pay on average $0.30/kg extra for MSA branded beef on a carcass weight equivalent basis to guarantee tenderness. This beef is primarily sold through independent butcher shops, although one of the major supermarket chains has now started selling MSA branded beef. The retailers kept about $0.06/kg and paid their wholesale suppliers the remaining $0.24/kg to source MSA compliant cattle and MSA graded carcasses. About $0.13/kg was passed back to cattle producers on average. The cumulative retail-level economic benefit of the MSA system to 2010/11 is estimated to be around $523 million, with a current annual benefit of around $77 million over the past three years. After accounting for all the costs of development and implementation, net benefits are at least $200 million.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/125838
    Download Restriction: no

    Bibliographic Info

    Article provided by University of Melbourne, Melbourne School of Land and Environment in its journal Australasian Agribusiness Review.

    Volume (Year): 20 (2012)
    Issue (Month): ()
    Pages:

    as in new window
    Handle: RePEc:ags:auagre:125838

    Contact details of provider:
    Web page: http://www.agrifood.info/review/

    Related research

    Keywords: MLA; beef characteristics; cooking methods; beef palatability; beef grades; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Farm Management; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; Marketing; Production Economics; ISSN 1442-6951;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Morales, Luis Emilio & Griffith, Garry R. & Wright, Vic & Umberger, Wendy J. & Fleming, Euan M., 2009. "Characteristics Of Different Consumer Segments In The Australian Beef Market," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48063, Australian Agricultural and Resource Economics Society.
    2. Zhao, Xueyan & Griffith, Garry R. & Mullen, John D., 2000. "Returns to New Technologies in the Australian Beef Industry: On-farm Research versus Off-farm Research," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123749, Australian Agricultural and Resource Economics Society.
    3. J. P. Voon, 1991. "Measuring Research Benefits From A Reduction Of Pale, Soft And Exudative Pork In Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(2), pages 180-183.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:auagre:125838. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.