The uptake of Meat Standards Australia in lamb should increase returns

Premiums, rather than discounts, should flow to lamb producers whose animals meet specifications for new and developing top-end branded products, says the new MLA boss.

Premiums, rather than discounts, should flow to lamb producers whose animals meet specifications for new and developing top-end branded products, underpinned by Meat Standards Australia technology.

This is according to the new boss of Meat and Livestock Australia, managing director Michael Crowley, speaking to The Weekly Times.

This follows remarks made by some processors at the recent LambEx conference in Adelaide that a push towards MSA grading could lead to “winners and losers” if grading became commonplace in abattoirs.

Mr Crowley said the move towards incorporated MSA grading for lamb was likely to start at the premium end, with brands developing to target high value food service markets.

With new MSA technology ready to be commercialised, he said it could also provide feedback to producers to inform decision making.

Mr Crowley said: “I think that may lead to premiums for livestock that meet those upper end specifications”.

“And as far as making sure no-one is left behind, the starting point for the lamb industry is very strong.”

When asked if there could be winner and losers, Mr Crowley said that “was a risk”, but that “lamb itself has a very good reputation so the system could be an incentivised system so that its more targeting premiums, rather than there being discounts”.

Michael Crowley from Meat and Livestock Australia. Picture: Kate Dowler

Mr Crowley said the MSA rollout in the beef sector was that MSA was introduced to solve the problem of too many beef products failing consumer’s expectations on quality.

He has skin in the game when it comes to MSA, after starting with MLA back in 2009 as manager of that program.

“Use of MSA (beef) grading model allowed brands to evolve underpinned by the MSA eating quality and there are incentives for (suppliers of) those brands, but there is also discounts for products that fail to meet those specifications, mostly around high pH,” he said.

“The lamb model is a little different – the inputs are weight, fat and IMF, to then harvest those cuts, and I think we will see brands developed around them.

“The baseline can be where we are at today, needing to move volume through the system, and the reputation (of lamb) is very strong domestically and internationally.

“It is more about how we capture value for that superior end product … and an opportunity for producers to get rewarded now (for better meat eating quality).”

Mr Crowley said stronger supply chain relationships could also aid in reducing some of the supply and price volatility seen in the sheepmeat sector.