Glen Burke Business Development Manager Terrace DownsMarch 2011

MSAWorld’s Leading Eating

Quality Program

• 38% - beef quality problems.

• 57% - problem selecting tender beef.

• 81 % - price no indicator.

• Appearance vs. eating quality.

• > 90% - fat = poor quality.

• Buy and pay more if satisfied.

Consumer survey results

• 560,000 consumer product tests

• 60,000 cuts of meat

• 6 cooking methods

• Wide variety of breeds, feed types, production and processing systems

The largest product testing program ever undertaken for beef in the world!

What is MSA a result of ?

Key attributes of eating experience:

Consumer testing showed

Overall Liking

Flavour

Juiciness

Tenderness

Consumers identify 4 grades

Consumer testing results

0

Good Everyday

Unsatisfactory

Better than Everyday

Premium

100766446

• Cooking methods will impact on eating quality.

• Roasting the Tenderloin decreases eating quality while roasting the Rump increases eating quality.

Cooking method

GRILL

CASSEROLE

CORN

ROAST

STIR FRY

SHABU SHABU

• Tenderness improves with ageing.

• Ageing beef can be done on the bone or vacuum packaging.

• When ageing product it is important to have complete traceability.

• Beef does not age when frozen.

Ageing

What does MSA mean?

• Consistent quality

• Consistently tender

• Known eating quality

• Therefore value for money

What is the difference between MSA and non-MSA beef?

• Non MSA beef may vary

The facts behind MSA

MSA labelling Carton end panel

MSA Grade.Ageing requirementsstart from packed on date.

Packed on Date.Time label was printed

The meat consumer of 2020

Demographics will change the way we live• Older Australians aged 65 and over will grow

from 13% to 30% of the population.• Household size will decline from 2.6 to 2.2

people.• Number of lone person households will

double, to over 30% of total.• Couples without children will overtake

couples with children, to become the most common family type.

• Loneliness is predicted to be the number one cause of death.

MEALS CAN PLAY A CRUCIAL ROLE IN MAINTAINING SOCIAL CONTACT

By 2020 …• today’s teenager will be a young mum,

By 2020 …• today’s baby boomer will be retired,

By 2020 …• our concept of mealtime will have changed yet again

Time pressure will continue to drive our meal decisions

• Grocery buying will continue to change– More males, both younger and older– More individualistic

• Meals tailored around the weekly cycle, which for older families also requires flexibility around sport, after school activities, and evening classes.

• Meal ‘construction’ flexibility– Serve your own when you get home– On the cook top, in the oven– Minimal preparation, easy construction eg

burritos, burgers• More out of home / pre-prepared / pre-cooked meals

CONVENIENCE, CONVENIENCE, CONVENIENCE

“Contra-trends” will be apparent• While some are working harder and longer

hours, others are working part time or retired• While many retirees are enjoying the good life,

most will be struggling with limited income and high health costs

• Many women will be committed to full time careers, while others will be constrained to part time work and child rearing

• Greater disparity in wealth and income• Hedonistic Vs Conservatism• Our targets will be fragmented

WE MUST BE ALERT & FLEXIBILE TO ADDRESS DIFFERENT GROUPS & NEEDS

Less Developed Cooking Skills

• Young adults are staying at home with mum and dad longer- of 25-34 year olds, 10.7% were at home in 1991, its now 12.6%.

• Marriage is being put off and becoming less likely- average for males is 28 years, females 27 years.

• Prevalence of eating out and a reliance on convenience meals means few cook from ‘scratch’.

• Cooking will be shared, with more males participating.

• Fewer at-home mums means cooking skills not being passed down.

COOKING IS BECOMING AN ART FOR MANY

Marketing Goals

To grow consumer demand for beef, sheep and goat meats by

1. Reducing trade and consumer barriers to demand

2. Enhancing and promoting the drivers of demand

Marketing Strategy:

Nutrition

- essential

- 3-4 times/ wk

Enjoyment- quality

- popular

Convenience- easy to choose

- easy to prepare

Red MeatRed Meat

Integrity- safe

- responsible

- ethical

Value for Money

- affordable

- price options

Communication and promotion

Supported by:

Nutrition

- essential

- 3-4 times/ wk

Enjoyment- quality

- popular

Convenience- easy to choose

- easy to prepare

Red MeatRed Meat

Integrity- safe

- responsible

- ethical

Value for Money

- affordable

- price options

Research and Development