Promoting Branded Products as Innovation in the Australian Beef Marketing System

Abstract

The Australian beef industry has evolved in its processing and quality evaluation systems into a more integrated supply chain via the introduction of Meat Standards Australia (MSA) grades. Even though the eating quality consistency of each cut may be guaranteed using the MSA scheme, consumers do not have much information about its attributes when they want to buy a piece of meat, so their purchase could be far from their preferences. Quality differentiation of fresh beef is rare in Australia; therefore, the capacity of consumers to express their preferences is constrained and the profitability of the entire supply chain is reduced. Some small specialised companies have received higher prices by introducing MSA grades and offering products that are differentiated, branded and guaranteed. But large Australian beef-producing companies are not currently selling differentiated and branded products to important retailers such as supermarkets. The objectives of this study are to identify the characteristics of the demand for branded beef products and the potential for large-scale differentiation using brands in the Australian beef marketing system, and how this differentiation may best be done given the structure of the supply chain.