The Effects of a Quality Grading System on the Development of Consumer Driven Best Practice Value Chains: The Example of Meat Standards Australia

Abstract

This research project analyzes the beef grading system in Australia. Firstly, the Meat Standards Australia (MSA) grading system as a potential value-creating and value chain-coordinating mechanism is investigated. In-depth interviews with value chain stakeholders and industry experts suggest that the implementation of the MSA grading system has had a catalytic effect of moving value chains toward a greater level of coordination. The concept of best value supply chains is also used as a benchmark in determining MSA’s effect on value chain performance. Secondly, using a survey of Australian consumers, findings suggest that the MSA certification is perceived as a trustworthy signal for tenderness and quality, reducing information asymmetry at the consumer level. This thesis then addresses the questions of whether or not it is necessary to use a grading system in consumer marketing (e.g. quality label) in order to be successful in terms of adding value to the industry.