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.

Beef consumers in Australia have shown differences in their preferences for products and sensitivity to price. This can be explained by the characteristics and influences of each consumer and the effect on expected quality of cues related to health, production process and eating experience. Eating experience is difficult to predict as consumers generally do not have enough information to form reliable expectations. In this context, branded beef can help to signal quality and reduce the degree of uncertainty that consumers experience when shopping. Research has detected premiums for branded beef cuts, where product attributes related to specific preferences had more influence than income and other consumer characteristics. Focus-group research, reported in this paper, has identified different segments, premiums for preferred products and the potential for large-scale differentiation and branding in the Australian market.