The Value of Muscle Score in Steers at Wagga Wagga Saleyards During 2010/2011

Abstract

There is an increasing emphasis in Australia on finding ways to improve retail beef yield, but no current way to commercially measure retail yield. However, there is a strong link between muscle score of the live animal as assessed in live cattle markets and subsequent meat yield measurements. Is there a credible value for muscle score in live cattle markets, and does it reflect the implied value of increased retail yield? In this paper these questions are investigated using price data from some 550 lots of steers sold at Wagga Wagga saleyard during the period July 2010 to June 2011. Two different types of hedonic models are applied and tested against each other. The preferred model explains some 76 per cent of the variation in the ratio of the price of all lots relative to the price of a reference lot (grown steer, 400-500 kg lwt, muscle score C, and fat score 3), and almost all of the measured quality characteristics (age category, weight category, fat score and muscle score) are individually highly significant. The coefficient for the muscle score B variable indicates a significant premium of around 12 per cent (or 25 c/kg lwt), relative to a muscle score C steer, while the coefficient for the muscle score D variable suggests a significant discount of 7 per cent (or 12 c/kg lwt). When underlying price levels are accounted for, the premium for muscle score B has stayed at around 12-14 per cent of the base price after the initial jump up from 7.5 per cent in 1990 although, for particular categories of animals, interactions between muscle score, fat score and age are important, and premiums and discounts are more like 5-6 per cent of the base price. The premiums and discounts for muscle score evident in steer saleyard prices are over-estimates of the eventual increase in retail value.