THE ISSUES

ISSUE 1: OLD COW BEEFHow to describe cuts of beef from old cows that either fail to grade MSA three star or have not been MSA graded.

ISSUE 2: FILLING THE GAPWhether to introduce an MSA Carcass Grading System to fill the ungraded gap between MSA Graded Cuts at the top end and Budget and Manufacturing Beef at the bottom end.

THE AUSTRALIAN CONSUMERS ASSOCIATION SAYS:1. A lot of ‘prime’ beef cuts sold in Australia come from older cows – which

is why they’re pretty hard to chew sometimes. A labelling system is needed that lets you know what you’re getting before you buy.

2. The current labelling system is inadequate: the word ‘Budget’ isn’t enough by itself to let you know that meat you’re buying is from an older animal.

3. We need a comprehensive beef grading and labelling system that addresses age and other contributors to quality.

NEWSPOLL SURVEYA Newspoll Survey of 1,200 households carried out last week found:

Only 6% of those interviewed understood that budget beef came from old cows.

Most people thought that the ‘Budget Beef’ label meant: The product was cheap or Nearing the end of its shelf life or That there was an oversupply of beef.

UK SLAUGHTER AGE LEGISLATIONUK per Capita Beef & Veal Consumption

(Source: Foreign Agricultural Services, USDAfor years 1996-2001; The BSE Inquiry: The Report for years 1986-1995)

15

16

17

18

19

20

21

22kg

per

pers

on

per

an

nu

m

Beef & Veal OTM Rule Introduced

ISSUE 2: FILLING THE GAP

Whether to introduce an MSA Carcass Grading System to fill the ungraded gap between MSA Graded Cuts at the top end and Budget and Manufacturing Beef at the bottom end.

MSA 3 , 4 & 5

“Budget”

?? Lucky Dip ??

SOME INCONVENIENT FACTS The majority of Table Beef sold to Australian consumers is not MSA

Graded. MLA research shows:

50% of ungraded beef fails to perform to the eating quality standards required by consumers.

Which means: Most Australian Beef purchases are made through a lucky-dip where the

consumer gets a good steak one time and a tough and tasteless steak the next.

NEWSPOLL SURVEY

Last week’s Newspoll survey of 1,200 households found:

Most consumers have never heard of MSA

Only half of those consumers who had heard of MSA thought that it had anything to do with eating quality.

COST/BENEFIT ANALYSIS

GHD Hassall and Assoc. Interim Report on the introduction of a National Beef Grading Scheme found:

A rise of 25c/kg for young steers = an increase of $40.69 = a net per annum farm gate benefit of $500 Million.

A rise of 50c/kg for young steers = an increase of $57.80 = a net per annum farm gate benefit of $667 Million.

COST/BENEFIT ANALYSISThe Report also found:

If every Australian ate an additional meal of beef every 6 weeks, the payout to the industry would be $590 Million a year.

If every Australian ate an additional meal of beef every 3 weeks, the

payout to the industry would be $1.2 Billion a year.

(GHD Hassall Interim Report)

Norman HuntL.L.B. B.Juris

Full text of this speech, slides and related documents can be found at:

www.huntblog.com.au