Why is marbling important? An exporter’s perspective. Back to Contents Robin B Hart AM Chairman of Stockyard Meats, PO Box 90, Jondaryan, QLD 4401 Phone: (07) 3221 4700 (Also Kerwee Lot Feeders Pty Ltd, Phone: (07) 4692 2277; Email: klf@kerwee.com.au) Abstract. This paper presents the beef exporter’s view of marbling and its importance in meeting the specifications of valuable markets. Around 62% of Australia’s beef production is exported. The Japanese market is now our most important market in dollar value. Marbling is now a more significant trait in the Japanese market, reflecting consumer preference rather than trade agreements or market quotas. Japanese tastes and cooking styles are well suited to chilled, marbled beef from Australia. Premium prices are paid for beef that meets these specifications. Both Japanese and Korean markets are likely to continue in this direction, with less emphasis on imported grass-fed product. This paper provides an insight into the Japanese consumer’s attitude to the appearance and flavour of beef products. Australia must maintain contact with such consumers to understand their preferences for marbled beef from the right genetics, the correct production system and appropriate post-slaughter chilling procedures. In the future, marbling will continue to achieve prominence in the Japanese trade, but will likely expand in importance in Australian and Korean markets. If there has ever been any doubt as to whether or not marbling is important to our beef industry, surely the very concentration of attention at this impressive conference clearly demonstrates we all believe it is very important to the future of our beef market. Why it is so important clearly needs answering further, and as to how we achieve the degree of marbling required in various markets is the most tantalising question of all. A question I suggest over which we will keep meat scientists, geneticists, nutritionalists, stud breeders, commercial cattle people, lot feeders, and processors extremely busy for many years to come. The on running challenge to all this is how we can further our knowledge, ability and our reliability to produce marbling. I am sure it will be an on running challenge but, this is no criticism of the conference, its organisers, or its speakers, but rather to make the point that this is a very elusive subject. The importance of concentrating our efforts, as we will in the next two days, with the aim of pinning down the answers to resolve this problem is highly commendable. If we do not get all the answers we are sure going to have a lot of fun trying and our appreciation must go out to the wonderful organisation known as ‘The Cooperative Research Centre for Cattle and Beef Quality’ and all who serve it for this initiative. I have been asked to speak on the ‘Why marbling is important’ as an exporter’s perspective. Let me assure you, in my opinion, marbling is an extremely important attribute sought after by our customers. Successful exporters must listen to and deliver their customer needs so that to me, this gets my focus on delivering the degree of marbling required. Lets establish a couple of points to get our focus right. The Australian beef industry depends heavily on export (Fig. 1). We actually export around 62% of our production. Therefore, our overseas customer demands have a big influence on our production. If we are not supplying and satisfying their important demands, we will simply lose market share. Figure 1. Destination of Australian beef. In value terms, Japan is Australia’s most important market (Fig. 2). Japan is also our most challenging market as the customers there are very particular and demanding about the quality and specification of the beef they require. Our ability to consistently meet, and exceed these demands, is important to maintaining and expanding our market share in this valuable market. There is clearly a demand for marbling in various degrees up and down the quality scale. But why has this only become apparent in recent times? Figure 2. Value of Australian beef exports to the major destinations (Japan, USA, Korea, Canada, Taiwan). Marbling has not always had the high degree of importance as it has now in our current North Asian markets. It is useful to look back and realise what has called the tune, which has influenced our production systems, in the past. The point I wish to demonstrate is that for a long time our exports were to markets which in one way or another were controlled or restricted by trade agreements or import quotas. Clearly, they were structures, which distorted or completely disregarded the consumer’s requirements in those countries. Since post war and up to the 1970’s we had a dependence on the United Kingdom, and strangely the United Kingdom market has never had a preference for marbling nor was it prepared to pay a premium for High Quality table beef. G.A.Q. was a common terminology used in the post war era. G.A.Q. simply meant ‘good average quality’ – a fairly vague type of classification. Following the completion of this supply agreement to Britain, we saw a dramatic demand emerge in the United States Market. Again, this was not for marbled beef because the trade agreement was for a lean manufacturing product. With ground beef, it is easy to add otherwise surplus fat to create the flavour required in hamburgers. Nevertheless, note well that fat is certainly added not just to use up a surplus product but also to create the flavour in the beef burger, which comes with good quality beef fat. In the late sixties and early seventies, we saw a reopening of the beef trade to Japan. This was a limited outlet, heavily restricted by quota, so beef of any type would sell well to a market that had done it tough after the war, and wanted the nutrition from beef. Many of our exporters, and in particular the importers in Japan who held quota, disregarded what the consumer’s demands were, and imported the cheapest beef possible in order to improve their margin. This import structure gave out the wrong messages to our breeders and growers as to what their consumers really wanted in the future. Sadly, the same wrong message has also been duplicated in earlier trade with Korea, to the point that today; Australia is perceived as supplier of poor quality and cheap beef. All the time during the import-restriction years in Japan, there was a latent demand for better quality beef. Beef, which had bright meat colour, white fat and in particular was marbled and could be supplied as fresh chilled vacuum packed product. Here in Japan, was a race of people who had greater expectations about eating enjoyment, more so than most western cultures. Their cuisine had been evolved to make excellent use of more of the beef carcass than western eating styles do and they knew how to best prepare it through a variety of cooking methods. Most of all, the Japanese appreciated marbling and would pay exorbitant prices for meat which was graded on its marbling. The demand for marbling in their table meat is not just restricted to beef but certainly is evident in fish such as tuna, also whale meat and in some districts, highly finished horsemeat is incredibly marbled. As the world markets have moved towards free trade and countries have been forced in to liberalizing their market away from import controls, real market forces have come in to play. Instead of importers, the consumers now have the purchasing power and have used it to specify and buy the quality most appreciated. Figure 3. (left) Percentage of chilled and frozen Australian beef exports to Japan (1988-1999). Figure 4. (right) Percentage of Grain-fed and Grass-fed Australian beef exported to Japan (1988-1999). Since the liberalisation of Japan’s imported beef market in 1991, we have quickly learnt to concentrate on the subtle flavours and differences required in this very demanding and discerning market place. We have seen a huge swing towards grain fed beef of different feeding times to suit the demand of the customer. That demand has been largely driven by degrees of marbling. This of course has demanded the inclusion of various degrees of marbling. I must say here that in 1990 I predicted to the Australian Meat and Livestock Corporation that this would be the way the market would move, while some thought the expansion would be in cheaper grass fed beef. Lets not get caught again, because mark my words, as the Korean economy improves and we go forward from its liberalisation, this market too will want grain fed marbled beef. Perhaps not quite to the same degree as Japan but marbling will be called for. We are already seeing a rapid decline in production of their domestic Hanwoo cattle. A breed with some similarity to Wagyu and fed to high marbling levels. We should realise that globalisation and the move to freer trading are now progressing and will be here to stay. As a result of this access of our product will improve. With improved access will come our improved ability to compete with the higher quality domestic product of other markets such as United States of America where the importance of marbling is well known and expected in table meats. So marbling is now terribly important in our current and future export markets. To bring this more into focus let me enlarge on this statement in a truly Sumner Miller way “Why is it so?” To the enlightened consumer, a display of marbling associated with those other visual characteristics of meat colour and fat colour, indicates to the potential purchaser a visual judgement on the expected level of eating quality (Figs. 5, 6, 7 & 8). What we must also realise is the importance of presentation and eye appeal at every point of display to the consumer, in the sophisticated market places for high quality beef, Japan, South Korea, United States of America and Australia. But this is best illustrated in Japan. Figure 5. (left) Japanese butcher shop showing Australian beef. Figure 6. (right)Wagyu striploin presented in a Japanese butcher shop. Figure 7. (left) Stockyard product in a Japanese butcher shop. Figure 8. (right) Wagyu Shabu Shabu on display in a Japanese butcher shop. The presence of marbling greatly enhances the ability of beef to convert from the raw state to the cooked meal without the product becoming dry and tasteless, like a piece of chicken. In fact, it is the subtle taste that marbled beef delivers to the meal, almost irrespective of the cooking method used, which influences the enlightened consumer in their selection at the meat shelf. It’s horses for courses however. The Australian consumer, who was brain washed, through poor promotion, in the 1980’s into eating lean beef, is still turned off by beef that has a marbling score 2 and up. This is well proven in most butcher shop and supermarket displays. Take the same consumers and offer them this marbled beef in a cooked product trial against lean cooked beef and they will pick the marble product each time as being superior in eating quality. There are more than 40,000 individual Meat Standards Australia consumer trails conducted to support the importance of marbling in enhancing eating quality. In recent times, in our major cities we have seen a great development of the concept of ‘steakhouse’ type restaurants. Most of them are using more mature grain-fed beef where a greater demand for marbled beef is being established in our domestic market as well. I trust some of the aspects associated with our market’s desires for marbled beef have confirmed the importance of marbling to you, in particular in our premium export markets as well as the growing steakhouse restaurants market domestically. What I think is so necessary is to create a real awareness with producers about its real importance and this is not very easy. Certainly there is nothing like excellent feedback and I am sure this information return is improving, or is it? Why is it we are constantly hearing from producers about our own company systems, where we do to a great deal of trouble about trace-back and trace-forward? We get comments like, “We don’t get this degree of detailed information at other plants”. Now if that is true, why are we not being rushed by breeders and feeders wanting to learn more about their particular genetics and feeding systems relative to their ability to marble and meet market specifications? I can think of a few reasons that could be at the bottom of the problem as to why more is not being done or achieved by the better analysis of carcass data. Data, which is all so necessary to compile and analyse for us to build our knowledge and move forward with our abilities to produce a reliable marbled product. Is it because the feedback, presented as a list of numbers (Fig. 9), does not have the impact of actually seeing the quartered carcass where one can appreciate more fully the degree of marbling (Fig. 10). Figure 9. Tabular presentation of carcass information. Figure 10. Desired presentation of carcass information. Not just whether it is a 2 or 3, but to be able to see if it is nearer 3 than 2. It is important too, to determine how fine is the texture and composition of the marbling and most importantly does it come with large amounts of pocket fat deposits between the muscles (Fig. 11). Figure 11. Heavy fat deposits in an Australian Wagyu/Angus F1 carcass. All these aspects are extremely important to the breeder and the feeder who together can best influence the outcome positively. The further up market we move our product the more challenging the degree of marbling and associated carcass traits become. Should we be over hauling our out dated chiller assessment system? This system is severely flawed due to the basic concept used to set a common standard between individual company graders. This is due to the degree of variation, or tolerance, set up or down the scale allowable within the controlling body known as the “common eye group”. This variation then becomes wider when individual area managers apply their own standard between company graders under their control. For a producer who processes at different processing plants, the result can be very confusing. This can be further confused by the different chilling regimes, which are used at different plants. Correct chilling of the carcass is so critical to many important outcomes associated with the ultimate eating quality. In particular, the actual detection of the marbling present is also so critical to muscle temperature and time after quartering to correctly determine the marbling score, consistently. So I guess I am ending up where I started, that is, the whole question of marbling is a complex and challenging subject. It is most certainly a challenge we must address to the fullest and follow down every pathway, which offers hope for solution and ultimate delivery of consistent and reliably produced marbled product. Our high quality markets expect and demand it. Just to recap on what these markets are. First and foremost, Japan where the degree of marbling is preferred at all levels, but to a lessor degree in their every day product such as short-fed and middle-fed. Our longfed product and Wagyu cross genetics are filling the demand created by the constantly declining domestic herd in Japan. Japan’s domestic herd has declined by 2 percent each year since 1996. We are seeing more and more outlets moving to supplement their sales with imported beef. A higher degree of marbling with finer texture and distribution are required for these discerning outlets. Korea, while it is early days and both their economy and their ability to handle chilled beef needs to improve; there will be a growing demand for long-fed marbled beef. The decline in domestic Hanwoo production, which normally supplies this demand, is more dramatic than the decline in Wagyu production in Japan. United States of America already has a well established demand for marbled beef. Freer trade, favourable dollar values and increased demand and prices for marbled beef will see more chilled beef going to that market. Finally, in our own domestic market, the popularity of steakhouses promoting branded beef, which is more mature, marbled, aged and (hopefully soon) better graded, has terrific potential. This trend will influence and change the consumer’s buying patterns as more and more people demand beef with the same eating quality in the retail outlets. Marbling is important in these markets because it influences some positive eating quality aspects, which are unique and peculiar to our beef product. These aspects happen to set beef aside in a class of its own from alternative meat protein. This is clearly because marbling contributes to that unique juiciness, flavour and texture so appreciated and demanded by our enlightened consumers. I really do challenge the Cooperative Research Centre for Cattle and Beef Quality management that this Marbling Symposium will not be "a one off event" as it was promoted. My guess is we will be debating the pros and cons of marbling for many years to come. Back to Contents