REVIEW OF THE EU CARCASE CLASSIFICATION SYSTEM FOR BEEF AND SHEEP (EPES 0708/01) A Report for DEFRA Prepared by AHDB Industry Consulting November 2008 Review Of The EU Carcase Classification System For Beef And Sheep CONTENTS Introduction 3 Summary 5 Recommendations 10 1. Foreword 12 2. Definitions 14 3. Historical Background 16 3.1 The Assessment of Quality 3.2 Industrial Revolution, New World, and War 3.3 Agricultural Produce Grading and Marking 3.4 The Verdon-Smith Inquiry 3.5 The Agriculture Act, 1967 3.6 Carcase Classification Schemes 4. The Case For and Against Classification 24 4.1 Aims and Objectives 4.2 Objections to the Development of Such Schemes 5. The Technical Basis and Development of Classification 27 5.1 Carcase Traits of Value in Commerce 5.2 The Validation of Potential Measurements 5.3 Measurements Chosen 5.4 Measurements Rejected 5.5 Sheep Carcase Classification 5.6 Meat Quality Characteristics 5.7 Checking of Classification 6. Objective Measurements in the EU Beef Carcase Classification Scheme 39 6.1 Background 6.2 Technical Considerations 6.3 Trial Work on VIA in Some Member States 6.4 Future Development 7. Developments in Predicting Eating Quality 45 7.1 The Importance of Eating Quality 7.2 Has the Technology Improved? 1 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 7.3 Has Classification Evolved? 7.4 The Way Forward for Eating Quality 8. Beef Grading Schemes in USA and Australia 50 8.1 Classification in Other Countries 8.2 The USDA Beef Grading Scheme 8.3 Meat Standards Australia (MSA) 9. The Legislative Dimension 56 9.1 The Legislative Relevance of the Carcase Classification Scheme in the Past and Today. 9. 2 The Beef Carcase Classification Scheme and How it is Implemented. 9.3 Sheep Carcase Classification 9.4 Role of RPA in England and Wales and its Equivalent in Other UK Regions. 10. Industry Views on Classification in 2008 64 10.1 Methodology 10.2 Views of Abattoirs on Beef Carcase Classification 10.3 Views of Abattoirs on Sheep Carcase Classification 10.4 Views of Producers on Beef Carcase Classification 10.5 Views of Producers on Sheep Carcase` Classification 10.6 Deadweight Price Reporting Some General Comments 11. Discussion and Conclusions 85 References 89 Appendix 1 Companies and Organisations Contacted 91 Appendix 2 Extent of Beef Classification in the EU, 2007 95 2 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep INTRODUCTION The Need for the Study Since carcase classification systems were first introduced over forty years ago, EU support schemes and the red meat industry have changed considerably, in particular the reform of the CAP and the structure and demands of the beef and sheep supply chains. The recent changes to the CAP regimes, ending production based subsidies and the demands within the meat supply chain have increased the need for producers to more closely meet market and customer specifications to sustain viable businesses. But at the same time, many issues facing those involved in producing, marketing and processing cattle and sheep, particularly in the nature of the commercial relationships, remain similar to those that in part encouraged the development of classification systems i.e. there are still many, fragmented producers facing often adversarial buyers and the problem of market failure still looms (as identified by the Radcliffe report 2005). A review to assess the extent to which the current systems meet the needs of the EU and the current and likely future market for red meat is therefore timely. Scope of the Study This report, undertaken in 2008 in response to Defra Project Bid No EPES 0708/01, reviewed the EU carcase classification schemes for cattle and sheep and in particular their relevance to the UK industry. Two fundamental aspects of the classification system were reviewed: 1. The appropriateness of regulated systems in the changed EU environment since the removal of direct livestock support measures; 2. The need for classification as a tool for the beef and sheep supply chains in improving efficiency, providing transparency and meeting the needs of the consumer. The study reviewed the current operation of these systems and the attitude of the industry, industry organisations and the EU Commission to them, and also considered the future classification needs of the cattle and sheep industries in the UK. 3 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep In undertaking the project the views of a wide cross section of representatives of the cattle and sheep industries in the UK were sought, these included a) Abattoirs that purchase cattle and sheep (that use or do not use the system of classification for this purpose), b) Bodies that represent abattoirs, c) Bodies that represent producers of finished cattle and sheep, d) Producer marketing organisations that sell finished cattle and sheep to abattoirs, e) Representatives of statutory organisations with an interest in classification. The study also took into account the latest views of representatives of the EU Commission, as well as abattoir and producer trade associations in some other EU countries. In preparing the report, the authors considered the extent to which classification is used in the industry, by policy makers and regulatory bodies, together with its costs and benefits. The need for changes in the light of present day conditions and possible future requirements were assessed. The main body of this report is organised into three sections: Chapters 3 to 8 review beef and sheep carcase classification – its technical basis, historical development and possible future enhancement by objective (instrumental) measurements. The last part of this section examines examples of schemes from outside Europe as possible models for the inclusion of ‘quality’ parameters. Chapter 9 describes the mandatory nature of carcase classification, the legislation that has been implemented and how it is used by the industry and regulators to improve market transparency. The roles of classification providers together with UK and EU statutory bodies are considered. Chapter 10 describes the current views and attitudes of stakeholders towards the classification schemes, based on interviews with a structured sample of producers, slaughterers and industry organisations. In addition, some background and detail on the operation of the related price reporting schemes is also given. 4 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep SUMMARY Review of the Development of Classification Definitions For the purposes of this review classification is taken as a common descriptive language that defines – without any cachets of quality – those characteristics of carcases and meat that would be useful in trading. Its development covered many years and varying conditions of supply, but it was adopted primarily to address poor market transparency and to improve the feedback of consumer needs to primary producers of cattle sheep and pigs. The classification system is defined as that involving the identification of the animal, the dressing specification, the weighing, the assessment on conformation and fatness (under the SEUROP grid), the documentation of the attributes and related price reporting issues. The term classification and grading are frequently misunderstood and indeed have been, and still are, used to describe the same process. The review clarifies these terms and, leaving aside the now discarded process of ‘grading’ animals or carcases in terms of their eligibility to receive a subsidy payment, grading is taken as a separate process involving the placing of premiums and discounts according to different market requirements. Technical and Political Background Following the recommendations of the Verdon-Smith Inquiry, the Agriculture Act of 1967 established the Meat and Livestock Commission (MLC) in GB and one its first tasks was to devise implement and operate national systems of carcase classification for cattle sheep and pigs. There followed an intensive period of technical work involving regional and national surveys of carcase types, and large-scale dissection trials to evaluate the basis of carcase composition and its prediction in the abattoir. MLC established, in common with much trial work throughout the world, that for beef and sheep carcases a visual assessment of external fatness and of conformation (shape) together with carcase weight, and category would predict - as well as any other technique available at the time – carcase meat yield, probably the most important factor to a meat trader. In addition, fatness, shape and weight were those characteristics most often used by traders – and crucially producers – in their day-to-day trading descriptions. 5 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Beef and Sheep Carcase Classification schemes were launched in GB in 1974 and 1975, respectively. Uptake by slaughterers varied but never achieved the penetration of the Pig scheme, which consistently covered around 75 per cent of the national kill. The report details the reasons for this situation and describes the technical and political changes necessary to adopt the EU Beef Carcase Classification grid on implementation of (EEC) Regulation 1208/81. Possible Improvements a) Meat quality At the time of the schemes’ development it was appreciated that meat quality, in all its guises, was of importance to the meat trader and also of principal interest to the consumer in the form of eating quality. This was, and still is, especially relevant in the case of beef. MLC and many other R&D bodies around the world spent a great deal of research effort to develop a satisfactory method of assessing meat quality in the carcase at the time of classification. No practical, reliable and costeffective measure emerged and subsequent efforts embracing improved technology are perhaps at best equivocal. There are however, other schemes in use – principally the USDA Beef grading scheme and the MSA (Meat Standards Australia) beef scheme which attempt to predict some aspects of eating quality at the abattoir stage, in addition to estimating meat yield. The report details these schemes and assesses their possible benefits for the EU and UK situation. It is concluded that the USDA scheme has very little relevance here, but one or two features of the MSA scheme would merit re-appraisal. At the same time, the features of the MSA scheme which affect meat quality were – almost without exception – included in the ‘Blueprints for Quality Beef’ programme pioneered in the UK by MLC some eight years earlier. The report argues that these additional quality factors are better suited to principles of good practice and total supply chain management, rather than classification per se. b) Prediction of meat yield A firm foundation of MLC’s beef and sheep classification schemes was, and remains, the strong relationship between assessments of conformation and fatness and saleable meat yield of the carcase. But over the past thirty years or so, this fundamental point appears to have been lost sight of by many observers - particularly primary producers. It is often argued that developments like VIA (Video Image Analysis), an objective system now adopted officially for EU Beef classification, offer significant advantages over visual assessments of conformation and fatness. The review examines published trial work on VIA which shows, at best, marginal improvements in precision over visual assessments. 6 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep It concludes that the perceived advantages of VIA - principally objectivity and consistency - should be weighed very carefully against the difficulties of ensuring comparability of results when (as would almost inevitably be the case) manual classification would continue to be used in other plants. In particular the current EU requirement for validating VIA installations (where to pass the test VIA has to mimic an expert panel of judges), seems to the authors to be a somewhat convoluted process failing to exploit the full potential of the equipment. The example set by the EU Pig Carcase Classification scheme where the new equipment (in this case automaticrecording probes) was calibrated against carcase lean content would appear to be a much more satisfactory, if difficult, way forward. The Current and Future Operation of Classification Cattle The general view from all those interviewed, both abattoirs, producers and the regulatory bodies was that on the whole the beef carcase classification system worked well, and was by and large delivering, particularly for producers, a trusted basis for the deadweight sale of finished cattle. In addition, the price reporting arrangements appeared to serve a useful function to all sectors including organisations at national and European levels including the EU Commission. However, there was also a small but significant minority view that while the system may be fit for purpose today, the continuing changes in the production and marketing of cattle would require the carcase classification system to deliver additional measures of quality in the future. Respondents who raised the quality issue were, in the main, unspecific in terms of what attributes should be measured, but frequently referred to those related to better eating quality. Several producers who saw the merit of possible quality measurements were equally cautious in that they were aware that these characteristics could also be influenced by abattoir practice and were not keen to see the introduction of “another price stick with which to be beaten.” It was noted that past attempts to adopt a more quality-oriented approach through the supply chain have been held back by the separate ownership of production, slaughtering and processing facilities. Supply chains are now becoming increasingly integrated, bringing about a different management perspective on quality enhancement and with it a positive influence on the future commercial relationship between producers and slaughterers. Regarding any new measurements of quality attributes, the EU Commission believes that these could be introduced if or when there is a EU-wide need for them and when the measures are shown to work. 7 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Some respondents – again a minority, roughly equally divided among producers and slaughterers – saw the need for objective measurements in classification, if only to give a perception of better standardisation and consistency within and between plants, therefore improving confidence in the system. Many of this group conceded that while desirable in principle, the benefits of VIA and similar techniques could easily be outweighed by cost and technology-related complications. Several respondents were aware that new equipment is relatively expensive to install, still giving problems with the measurement of fatness and possibly subject to bias. The expense of VIA equipment may not be an insuperable problem for the ‘very large’ cattle abattoirs that supply some of the large multiple supermarkets, but for many, such as the still relatively large number of ‘large/medium’ sized plants in the beef sector that still account for over 50% of UK cattle slaughter, it would be. For them the current system is both convenient and cost effective and they would not even begin to consider changing without financial help. Similarly the EU Commission does not see any reason to review the legislation to take account of any new systems of classification, until these are more effective and are being used more widely. Notwithstanding the above, the pressure to consider and develop alternative systems and the means of using them to pay on a different basis e.g. on meat yield will continue. Sheep In contrast to cattle, the classification system for sheep was seen to have major problems in the view of many of those interviewed for this report. While some of the aspects of the system, particularly the assessment of fatness and conformation, were seen to work if carried out by trained personnel, the overall classification system for finished sheep, particularly from the point of view of many producers left a lot to be desired. Nationally as far as producers and some abattoirs were concerned, the sheep carcase classification system was not seen to be delivering what it should – that is a trusted and transparent basis for the deadweight sale of finished sheep between producers and abattoirs. The main reason for this was seen to be the lack of standardisation of dressing specifications and weighing and the problems in application and comparison that this caused. Thus comparison of prices quoted on a carcase weight basis were, from a producer perspective, confusing and misleading. To date the attempts to tackle the problem of the lack of standardisation of dressing specification and weighing, through meetings between representatives of producers and abattoirs have failed. The majority of the representatives of producers interviewed saw it as a major problem, which is severely hampering the development and health of the sheep industry. 8 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Some abattoirs see it as a problem that inhibits competitiveness; others see it merely as a ‘terms of trade issue’ in the trading of livestock between the abattoir and the producers, which should be dealt with on a one to one basis (i.e. ‘let the seller beware’). Other abattoirs maintained that producers were also not averse to indulging in ‘sharp practice’ (e.g. in the manipulation of the quality of sheep/lambs in batches), and that abattoirs needed to be able to manipulate the ‘terms of trade’ to protect themselves. Given the attitudes in the industry it is difficult to see that the problems with sheep classification will be resolved by multilateral agreement, so what are the options for change? 1) To some farmers the only solution was further support for the radical option that they needed to control the entire supply chain (e.g. learn from the Danish and New Zealand experience). 2) A second option was that government could intervene (as with cattle) and establish a more standard system, carried out by an independent classification body policed by the RPA. Or it could first try a Northern Irish approach and broker a voluntary standardisation and supervisory scheme. 3) A third option was to introduce standard new technology in the larger plants (for example VIA equipment), which to work properly would need independent calibration and monitoring and an agreement on the use of standard dressing specification. However, it has been pointed out that a move to an objective system such as VIA (claimed to give greater standardisation and transparency) still may not benefit all producers. In a market with decreasing supplies for example, there will still be some who will be very happy to sell sheep of heterogeneous quality on a flat rate basis. Similarly, as with cattle, such a move may also not be seen as a cost effective solution for some of the main sheep abattoirs, particularly the large export/Halal plants that accounted for almost 30% of sheep slaughtering in 2007 (but who by and large do not supply the supermarkets). Given the nature and structure of the sheep industry it is difficult to envisage a move towards greater standardisation without some form of legislative compulsion or incentives to introduce new methods of working. 9 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep RECOMMENDATIONS A. Cattle 1. Beef Carcase Classification is accepted by the overwhelming majority of industry stakeholders as a cost effective trading tool, which, while being less than perfect, is used by all sectors. The absence of significant criticism of standards of application, bearing in mind that independent providers and abattoir staff are authorised to classify, speaks well for the system of checks and balances put in place by the Rural Payments Agency and the EU. While its use for market support measures has almost entirely disappeared, the current use to which classification is put accords well with the original aims of the scheme’s architects. Some forty years later however, many of the market inefficiencies – especially price opacity – still persist, but they would be markedly worse without a classification scheme. We recommend, therefore that the classification scheme continues in its present form. For the public good the EU and Defra should continue to implement the mandatory system and bear the relatively small cost (related to the size of the industry) required to do this. 2. The parallel activity of price reporting, given in terms of prices carcases achieve according to classification, was considered by almost all respondents interviewed to be extremely valuable market information. The delay between published prices and those in the market at any particular time was regarded as almost inevitable but not, in the view of most, a significant inconvenience. We recommend that price reporting information continues to be collected and published, and the agencies involved in the gathering and collation of data pursue every opportunity to do so efficiently and effectively. 3. In the course of conducting interviews a recurring topic concerned the possible measurement of quality parameters such as those of importance to the consumer, notably tenderness, juiciness and flavour. There is keen debate over both the utility of possible measurements and whether they fit within the ambit of classification (of necessity carried out on the hot carcase at the point of weighing) or within a wider ‘good practice’ procedure. We recommend that additional measurements of quality, in particular those claimed to predict eating quality by the use of on-line instruments are not adopted by the industry for use in classification at this time. As technology advances, the effectiveness of these techniques should be kept under review by the competent authorities. We recommend that other measures to enhance quality generally by the application of good practice across all or most production should be incorporated in to whole chain approaches but not be seen as part of carcase classification. 10 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 4. Objective systems of beef carcase classification (for example Video Image Analysis – VIA) may offer marginal improvements over visual operation in some respects, but their current performance in some areas is not as good as it should be (e.g. in measuring fat class) and they bring significant cost implications and operational complications for regulators and operators. We are aware that Ireland, for example, has adopted this technique in all their major beef plants, but the issues and conditions that stimulated and made possible this approach are not present in the UK. We recommend that these techniques are currently not appropriate for mandatory use in the UK for beef carcase classification. If individual or groups of plants wish to introduce such systems for commercial reasons, a better system of validation is necessary. B. Sheep 1. The many different dressing specifications in use by UK abattoirs impedes market and price transparency, is confusing to producers and complicates any statistics produced on national or regional production and price levels. In addition, weighing practices vary, particularly over hot to cold weight rebates and rounding procedures. The damage these inconsistencies inflict on confidence in deadweight selling in general and classification in particular cannot be underestimated. We recommend that the industry is encouraged to adopt a unified carcase dressing specification and weighing procedure. 2. While many respondents considered that these problems attendant on sheep carcase classification could be addressed by bringing in a mandatory scheme, they accepted that this was not likely to become a reality. Reluctance on the part of the EU Commission to propose compulsion for a ‘minority product’ was seen as being an insuperable hurdle. In addition, some respondents saw the lack of mandatory status as undermining not just confidence in the carcase dressing procedures but also in the standards of classification applied towards conformation and fatness assessment. Some of this unease was due to confusion in the minds of some producers as to who carried out the ‘classification’, bearing in mind that abattoir staff can assess carcases and award them categories that reflect the sheep carcase classification scheme operated by qualified MLC Services Ltd staff. We recommend that efforts are made by the relevant bodies responsible for improving efficiency in the industry (e.g. AHDB/EBLEX, LMC, QMS and HCC) to improve the implementation and effectiveness of sheep carcase classification by encouraging voluntary standardisation and validation (e.g. this could be done by using RPA or qualified independent classifiers to validate standards). 11 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 1. FOREWORD Meat in general and beef in particular is a varied and infinitely variable product. Its production, distribution, processing and retailing in the UK are beset by many problems, notably fragmented production and retailing, frequent mis-alignment of supply and demand, a long history of government intervention in the market and a high level of imports. The marketing of livestock and meat is conducted through several different competing and lengthy channels, each with its own set of deficiencies but all often share the major defects of poor market transparency, imprecise product description at the point of first hand selling and inadequate feedback of consumer requirements to the primary producer. The effect of this last factor has been made worse over many generations by a widespread dependence on market support and producer subsidy. Thus historically production considerations, rather than market requirements, have overwhelmingly influenced livestock producers when making business decisions. A series of Parliamentary Committees of Inquiry have identified many of these shortcomings and posed solutions; usually without great effect. A notable exception was the Verdon-Smith Committee of Inquiry into Fatstock and Carcase Meat Marketing and Distribution of 1964. Their report catalogued exhaustively the above failings, and more, and recommended that classification schemes for carcase meat be introduced - by compulsion, if necessary – and that a body be created to develop, implement and operate these classification schemes. A common descriptive language for carcases, Verdon-Smith argued, was the sine qua non of firsthand trading and market intelligence. The subsequent Agriculture Act (1967) established the Meat and Livestock Commission (MLC) who first met later that same year. The Act defined classification as one of MLC’s principal tasks and by the early 1970s schemes were in operation covering significant proportions of the cattle, sheep and pigs killed in GB. The last 30 years have brought huge changes to the UK meat industry: EU membership, a radical overhaul of subsidy and support payments, and a retailing revolution that has changed the way that consumers purchase meat. This has seen the demise of many traditional high street butchers and the growth of meat sales in the large supermarkets. The supply chain servicing the retail (and food service sector) has also changed drastically over this period, with a reduction in the numbers of slaughterhouses and a concentration of ownership and throughput. Two animal disease epidemics BSE and Foot & Mouth – caused severe problems in the industry and countryside (and still reverberate today) changing the way both authorities and consumers view animal production in general and beef – perhaps because of its premium status – in particular. With UK membership of the EU came the eventual adoption here of mandatory beef and pig carcase classification and its extension currently to all 12 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 27 Member States. Sheep carcase classification although covered by EU regulations, was not made mandatory (although price reporting was), and is only undertaken on a voluntary basis, principally in the major sheep producing countries (of which the UK is the main one). The use of classification in the UK is today arguably (even with compulsion), more or less still what it was in the early days of development. The beef scheme itself remains remarkably unaltered, although many if not all the EU market support measures (based on carcase payments and therefore mostly based on classification) had by 2008 been swept away. 13 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 2. DEFINITIONS It is important in the context of this report to define what are meant by the terms ‘classification’ and ‘grading’, as they have been (and continue to be) used synonymously, causing considerable confusion. The following definitions, enjoying majority support and understanding at least in Europe, are proposed for the purposes of this report: CLASSIFICATION is a set of descriptive terms describing features of the carcase that are useful to those involved in the trading of carcases. The classification system is defined as that involving the identification of the animal, the dressing specification, the weighing, the assessment on conformation and fatness (under the SEUROP grid), the documentation of the attributes and related price reporting issues. GRADING is the placing of different values on carcases for pricing purposes, depending on the market and requirements of traders. Thus classification seeks to be a universal language of sufficient breadth to cover the vast majority of carcases traded (as originally envisaged at least within one country, but now also across the entire EU). It enables those involved in the production, slaughtering, cutting, distribution and retailing of meat to describe carcases in terms that others will understand and that are of commercial relevance in trading. Grading invariably involves value judgements, the concept of ‘better’ and worse, and the use of price differentials between grades for carcases according to the buyers’ and their customers’ needs. In practice there are no universal grades, but they will vary from buyer to buyer, reflecting local and regional tastes and requirements and the relative importance of different carcase characteristics, although at times a consensus of opinion can appear that gives the impression of a universal truism (e.g. that lean lambs are better than fat ones). Classification, on the other hand, makes no attempt to confer these attributes to a carcase. ‘Quality’ with its many meanings and subjective nature is used in grading but usually avoided in classification discussions. Grading is frequently based on classification information and many classification classes can be aggregated into fewer buying grades. Premiums and discounts reflecting consumer requirements should stimulate producers to modify their production and increase returns by matching more closely their production to the market. The long-standing practice in the UK of ‘grading’ livestock in terms of their entitlement to receive a subsidy payment of one sort or another was a further cause of confusion. The Fatstock Guarantee Scheme and Deficiency Payments were originally applied to animals at auction markets and also administered on carcases. Such schemes were devised in response to wartime conditions or to periods of variable and uncertain supply immediately 14 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep following the two World Wars. Grading was seen as a way to protect the consumer and aid the producer of home produced beef, lamb and pork in the face of widespread imports, occasionally of doubtful provenance and - in the hands of less than scrupulous traders – sometimes passed off as home produced. On a wider scale and more recently, EU support payments to cattle and sheep producers were also given on carcases, which met certain criteria, related to market acceptability (the last being the Beef Special Premium, which ended in 2004 with the introduction of the Single Farm Payment). 15 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 3. HISTORICAL BACKGROUND 3.1 The Assessment of Quality ‘He who buys meat buys many bones, He who buys land buys many stones, He who buys eggs buys many shells, But he who buys good ale buys nothing else.’ The significance most of us attach to meat eating and the universal desire for it to be a pleasurable experience more or less guarantees that the pursuit of quality - however it is defined – and its assessment has been and will continue to be a topic of considerable importance. The need to assess quality in meat, the carcase from whence it came, and before that the animal, has engaged producers, slaughterers, processors, wholesalers and retailers for many centuries, to say nothing of the more recent recruitment of economists, marketing analysts, politicians and scientists. Carcase classification has played an important part in the story in recent years. The following section introduces the background to the development of classification. 3.2 Industrial Revolutions, New World, and War The Agricultural Revolution and more significantly the Industrial Revolution changed forever the social and technological landscape of Western Europe. One of the most obvious features – a mass move of the people from the country to the new centres of urban population – separated man from his domesticated ruminant animals on which he depended for his meat and milk. Farmers with better cropping systems; new crop varieties and more intensive animal husbandry methods met the new city dwellers’ taste for more meat, fuelled by higher real wages. Perishable agricultural products could be transported to the centres of consumption rapidly on the newly developed railways. The old system - where consumers either produced their own meat or at least knew, or knew of, the producer - contrasted starkly with the new system of longer distribution chains requiring several agents and many transactions between farm gate and consumers plate. The potential for passing off or, at best, mis-description was high and consumers, uninformed by plausible labelling, could be misled as to the provenance of their meat. In addition, the late 19th century saw the opening up of huge areas for livestock grazing in Australasia, North and South America and later Africa, particularly for beef and mutton production. Exports of frozen or chilled meat found their way to the UK in such vast tonnages that British Agriculture seriously declined until the First World War. From this period through the Second World War and up to the late 1940s there followed a repeated 16 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep sequence of shortages, rationing and price controls, large-scale meat imports (often of dubious quality). This led up to the 1948 Agriculture Act, that set out to better manage agricultural production, encourage an increase in domestic supply and reduce imports, such as with the mechanism of deficiency payments, (i.e. subsidies to make up to the producer the difference between the market price and a return that was deemed to be reasonable). From this time on the search for a better, more consistent and well understood way to assess live animals and the quality of meat that could be derived from them, that was begun after the end of the First World War in 1918, then put on hold at the beginning of the Second in 1939, was resumed. 3.3 Agricultural Produce Grading and Marking It was shortly after the First World War that the UK Government attempted to address what it saw as several related issues: • Market inefficiency, • Poor market transparency, • Lack of consumer confidence in the retail product caused by among other things poor labelling and marking, • A desire to aid the UK producer by reduction of imports and stimulation of the home-produced article. A number of Parliamentary Committees of Inquiry on Beef and Lamb marketing matters were established and in time duly reported. An early Committee (HMSO, 1930) recommended that a grading and marking scheme for beef be introduced as part of a wider initiative to cover homegrown agricultural produce in general (under the Marking of Produce Act, 1928 and revisions). The beef scheme was welcomed by producers, received guarded support from many retail butchers but was met with outright opposition by the slaughter and meat trade organisations. This latter group saw the scheme as unnecessary and heavily skewed in favour of producers (and so presumably contrary to their own interests). The ‘grading’ proposed was a visual inspection of the live animal or the carcase, based primarily on certifying that the animal had reached a suitable stage for slaughter (in wartime conditions the premature slaughter of animals would represent a serious waste of valuable resources), that the killing-out percentage would be reasonably high (again attempting to minimise waste), and that fat cover was adequate, without being excessive. In addition the conformation was usually assessed, as it had long been traditionally valued as an indicator of carcase and meat quality. While some photographs of the grades were later produced much of the language chosen to define the grades was subjective and judgemental, such as ‘relatively’, ‘adequate but not excessive’, ‘in proportion’, ‘rounded’, ‘plump’ and so on. Grade names were Prime, Good, Standard etc but they were 17 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep really reflections of show ring standards and Christmas Fatstock exhibits of usually what we now would call over fat stock. To some extent the growth and development theories of the day which perhaps over emphasised that late maturity of animal produced better high-priced parts such as hindquarter and back, were adopted with too much enthusiasm. Certainly in the breeds and crosses of that period a high degree of fatness was associated with the later stages of finishing, deemed necessary at the time. It was perhaps no surprise, when price support mechanisms were extended after the Second World War, that the basis of the schemes was largely the earlier marking and grading scheme. The Fatstock Guarantee Scheme (FGS), as it became known, underpinned producer beef prices from 1954 to 1973 (and to 1980 in the case of sheep). The eventual demise of the FGS came about as a result of Government unease over the extent of Exchequer liability (more or less open-ended), the concern over its effect of insulating producers from market signals and the general feeling that eventually a freer market must be established (ironically it was the arrival of another very managed market - the EEC Common Agricultural Policy (CAP) - that finally caused the termination of the FGS). It was many years before this, however, that the Verdon-Smith Committee of Inquiry (HMSO, 1964) set out many of the problems together with some possible solutions. 3.4 The Verdon-Smith Inquiry (Committee of Inquiry into Fatstock and Carcase Meat Marketing and Distribution, 1964) The Verdon-Smith Inquiry analysed the major problems of the meat industry at the time as follows: • Lack of product uniformity • Seasonal and (in the short term) unpredictable demand • Absence of standard measures of quality • Poor market intelligence, “price information almost non-existent” • Irregular and unpredictable supply with up to three years lag in production • The Fatstock Guarantee Scheme distracted producers from consumer requirements • Perishable product • High level of imports • Production led (as opposed to market led) • Fragmented production and retail operations • Many complex marketing channels • Not easily amenable to large-scale organisation • Auction mart impeded feed back of consumer quality requirements • Chaotic policies of Governments with respect to slaughterhouses • Lack of precise description at the retail level with little or no visible marking of prices …’the consumer depends, more than is usually acceptable today, on the advice of the salesman.’ 18 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep To address these shortcomings a range of recommendations were made. The following are those most closely concerned with carcase classification and related matters: • • • Establish, by Statute, a Fatstock and Meat Authority (FMA) in GB to be an independent, supervisory, advisory and development agency for fatstock and meat marketing; This agency (that was subsequently established in 1967 as the Meat and Livestock Commission [MLC]) was to be responsible for the design, introduction and operation of carcase classification schemes for cattle sheep and pigs; The FMA should collect, analyse and disseminate data on livestock, carcase and meat quantities traded, and prices, together with slaughtering, through all the channels of marketing. Live and dead weight comparisons should also be made available to aid producers. In addition, Verdon-Smith supported the practice of dead weight marketing, and offered encouragement to its advance, but also saw the merits of the auction mart and accepted its continued presence on the marketing scene. It considered that the FGS had outlived its usefulness, insulated farmers from the market and encouraged them to take marketing decisions that were not in line with consumer requirements. The Inquiry recommended that the scheme be drastically modified so as to encourage more efficient marketing or else be progressively dismantled. 3.5 The Agriculture Act, 1967 Following this Committee of Inquiry, the Agriculture Act of 1967 (HMSO, 1967) set up MLC and as one of its primary functions gave it the following mandate: “For the purpose of providing a standard method of describing as fully as practicable those characteristics of a carcase which are the principal features of interest to persons trading in livestock and carcases. The Commission shall, as soon as practicable, compile systems for the descriptive classification of all types of livestock slaughtered in Great Britain and for marking carcases according to that classification”. In addition, the Act paved the way for the transfer of several hundred Ministry of Agriculture Fatstock staff over to MLC’s employment. At the time of the transfer, these staff were chiefly engaged in duties connected with livestock and carcase certification under UK statutory schemes such as the Fatstock Guarantee Scheme, principally the inspection of animals and carcases to ascertain their suitability for subsidy payment. At this time support payments were applied to cattle, sheep and pigs. In the parlance of the day these staff were known as ‘graders’ and the operation of inspection and certification for subsidy was known as ‘grading’. This represents a further historical cause of confusion over the term grading. 19 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 3.6 Carcase Classification Schemes In 1967 these staff formed the body of what was then termed the Fatstock Division of MLC and together with new recruits would become the classifying officers responsible for delivering in abattoirs the Beef, Sheep and Pig Carcase Classification schemes about to be developed. In carrying out their responsibilities to develop classification schemes under the 1967 Agriculture Act, MLC faced many challenges – technical, administrative, political and economic. 3.6.1 Pigs In the case of pig carcase classification - the detail of which is outside the remit of this report, but in terms of generalities offers some useful comparisons with beef and sheep schemes – MLC’s scheme made rapid initial progress. This was due, in no small part, to the industry’s familiarity with and use of deadweight trading coupled with producer payment schedules that rewarded leaner carcases. This followed the lead established in Denmark many years before, where producers were paid on the basis of carcase back fat measurements. The entire industry, almost without exception, accepted that pigs could be described in terms of classification criteria, could be conveniently traded based on such, and agreed that further reductions in fatness remained the major consumer requirement and improvement objective. Further it was recognised – in contrast to cattle and sheep - that live appraisal of pigs to predict carcase qualities (apart from emaciated or grossly over fat pigs) was extremely difficult, not to say impossible for the average person engaged in livestock and meat activities. In addition it was generally agreed that eating qualities of pig meat were on average quite acceptable and little in the way of visual appraisal of the live animal or knowledge of its breed or type would be of use in further predicting this feature. Thus by 1985, 13 years after beginning the scheme, the MLC pig carcase classification scheme covered some 80 per cent of the kill in GB. 3.6.2 Beef and sheep Following wide industry consultation, MLC launched a pilot, or experimental, Beef Carcase Classification scheme in (1972). The scheme was based on: • The establishment/verification of carcase weight (derived from a nationally agreed and verified carcase dressing specification), • Visual appraisal of conformation and fatness • Category • Age. 20 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep The scheme achieved coverage of around 45 per cent of the national kill by 1976. This was accompanied by intensive promotional activities by MLC: technical literature for all sectors of the industry, a strong focus on classification at local, regional and national Agricultural shows and livestock events, Christmas Fatstock shows and countless demonstrations at farm and abattoir open days, markets and other venues where producers and meat industry people gathered. Yet it was also the case that while beef classification was achieving a satisfactory, if not universal, coverage on a voluntary basis, the information recorded in the scheme was often little used by the meat trader as a basis to price carcases. Similarly many slaughterers did not pass back the classification information to the producer, nor did they describe carcases or cuts taken from them in classification terms to their customers – the wholesalers, processors and retailers. There were (and still are), many reasons why classification information was under utilised but one important reason in the early years of development was connected to the method of charging for classification and financing the staff carrying it out. At this time MLC Fatstock officers were present in the abattoir (as well as the auction market) undertaking duties on behalf of the Government to certify and inspect carcases for their eligibility for subsidy payment. Later this extended to EU (then EEC) schemes for market support based on individual carcase inspection. Thus classification was often carried out as an ‘add on’ or shadow exercise at little or no extra cost – often for demonstration or publicity purposes at the time when the scheme needed all the support it could get. The danger was that slaughterers accepted or suffered classification while it was provided at no extra cost but apart from a few more progressive companies, many ignored it and made little effort to use it, indeed could be cynically obstructive. This began to change from the late 1970s when due to new calls on MLC levy income and progressive change from UK to EU support schemes, the cost of classification had to be increasingly borne by the industry. This at first resulted in a decline in the use of the service but a subsequent increase as the more progressive companies that saw a value in the activity gradually became more dominant in the industry and as it became a requirement of new EU schemes. The level of participation can be seen at certain points as shown in Table 1. 21 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Table 1. Percentage of Carcases Classified by MLC in GB 1974 to 2008 Year Beef % Sheep % 1974 Scheme introduced Scheme introduced 1975 1976 45 na 1978 na 30 1980 20 12 1985 29 25 1990 41 27 1995 41 27 2000 52 34 2008 78 42 Source: MLC 3.6.3 Classification in other EU states and the EU scheme As in the UK, the roots of classification development in other parts of Europe are to be found some time before discussions in Brussels about the adoption of a common EEC/EU scheme. Several European countries had, as in the UK, operated grading / classification/sorting schemes for trading or livestock improvement programmes as an essential pre-requisite to price reporting and market support. Germany was among the first to adopt a compulsory classification scheme for trading purposes in 1968 and used a 4 x 3 conformation / fatness grid in which the fatness scale was differently aligned depending on the class of animal under scrutiny. Ireland also had been developing a grading/classification scheme, principally as an aid to their beef exports, and used seven-point conformation and fatness scales. The scheme became mandatory in export plants, as was the passing back of classification information to the producer. In France trials were also under way with fatness and conformation descriptive schemes for market reporting purposes in live cattle markets and later in carcase trading. They were also the first, under the guidance of the state organisation ONIBEV, to adopt the 22 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep nomenclature EUROPA for describing conformation classes – presumably as a move to be considered the ‘model’ should a wider unified scheme come under discussion. The French moves more or less mirrored, in terms of timing and form of the scheme, the UK developments. The schemes described above were to a large degree similar and based on: • Carcase weight, • Sex/category • Age, • Fatness and conformation (both visually assessed) These formed the five foundation points. In addition, they had benefited (in both technical and comparability terms) from the attention of several international working groups of meat scientists (under FAO, OECD or EAAP guidance) looking at the harmonisation of carcase measurements - mainly for other R&D purposes. These methods had to be cheap, quick and reasonably precise (just as they need to be for classification purposes) since very few R&D programmes had the resources to dissect (and devalue) much prime beef. So when the many working groups were convened later under the auspices of the European Commission’s Beef Management Committee, to discuss classification, many of the technical experts who had worked on prototype schemes were now advising member state officials. The Beef Carcase Classification scheme that finally emerged in 1981 under Council Regulation 1208 and Commission Regulation 2930 was a committee creation and, perhaps not surprisingly, contained many if not all the features seen in the European schemes described above (see Section 9, The Legislative Dimension). It was thus a relatively simple process to amend the UK’s classification grid to compare with that adopted by the Community, and Britain adopted the scheme on 9 November 1981. But in the words of Kempster et al., (1982) ’ the challenge in the 1980s in beef classification in Europe will be to achieve standardised application of this scheme. Photographic standards and/or international inspection teams will be used. But it is clear that the wording of the official scheme adopted is a ‘committee-table’ compromise of rather different national approaches and some problems in interpretation, as well as standardisation, can be expected.’ Problems of interpretation and standardisation did occur and still do occur, but detached observation would on balance suggest that most of these pitfalls have been overcome with the result that a unified beef classification scheme operates reasonably well across 27 member states. Differences in application and interpretation, where they do occur, will be described later in this report. 23 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 4. THE CASE FOR AND AGAINST CLASSIFICATION 4.1 Aims and Objectives The aims and objectives of carcase classification were stated by MLC in similar terms to those highlighted in the Verdon-Smith report, as a set of hoped for improvements to the meat marketing system. These were: • • • • • • • • • To provide a common language for use by those in trading livestock and carcases to facilitate trade and intensify competition; To develop clearer market signals from the consumer to the producer by the use of premiums for desirable stock and discounts for less desirable stock; To act as a catalyst for breed and national herd / flock improvement; To act as a framework for the development of national price reporting schemes to enable those trading (and others such as statutory organisations) to determine what prices were paid for differing types of stock in different areas; To assist producers market their stock more effectively, aided by better ‘market transparency’; To improve efficiency in transactions in what is today referred to as the ‘supply chain’ between producer, slaughterer and retailer; encouraging buying specifications to be used that could be filled and verified against classification descriptions. In other words, carcases and primal cuts could be traded unseen; To allow those cutting meat to monitor and control their operations on a yield basis. Classification has a direct relationship with the amount of saleable meat in a carcase. Yields and returns from cutting and processing can therefore be predicted and monitored with a knowledge of the classification of the carcase raw material; To promote, by the marking or labelling of classification information on meat up to the point of retail sale, a basis for ‘quality’ marks or promotional brands; To facilitate the development of any export markets. Livestock producers and their organisations, which saw it as a positive aid to producing what the market demanded, in general, supported classification. 4.2 Objections to the Development of Such Schemes On the other hand, classification met (and still meets), considerable opposition from many companies in almost all sectors of the meat industry, notably slaughterers, wholesalers and traditional butchers, that saw (and still see) their business model in primarily ‘trading’ rather than in ‘linked supply chain’ terms. These sectors claimed that the points above contained many advantages for producers and few if any for themselves. 24 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Ironically, it was largely because of the existence and activities of such traders, who depended on and exploited a certain amount of ‘market opacity’ that Verdon-Smith and previous Parliamentary Committees of Inquiry called for classification to be set up on a national basis. When classification was being set up there were also large sections of the meat trade and their organisations vehemently and openly opposed to the setting up of MLC (as they saw it, predominantly a producer oriented body). After its establishment MLC’s activities were in most cases met with indifference or hostility and the statutory levy (“a tax on meat”) was strongly resented by the slaughterers and wholesalers who had to pay it. Almost inevitably then, MLC’s first major project – carcase classification - became branded as an unnecessary and unwanted scheme from an unloved organisation. A recent comment from a senior member of the National Federation of Meat Traders (an organisation by and large representing the independent butchers), indicates how deep this view is still imprinted into certain sections of the industry: ‘“Over the lifetime of the MLC the NFMT has believed that it pursued some pie-eyed schemes. Carcase classification was thought to be unnecessary as any craft butcher knew his trade and developments of that kind were seen as aids to supermarket specification buying and assistance to that sector prevailing over the independent.’ (R. Tyler Food Trade for Butchers (editorial) March 2008 on reviewing the demise of MLC) What is enlightening is that NFMT passed a similar resolution at its meeting of September 1929, stating’“… the scheme (National Grading and Marking of beef carcases) was unworkable and unlikely to accomplish its objects …’. (HMSO 1932. Report of the Second Inter-Departmental Committee [The Kirkley Committee] on the Grading and Marking of Beef. Cmnd. 4047 Over many years of consultations, those in opposition to the development of classification schemes would most frequently raise the following points: • • • In the first instance classification was seen as unnecessary, since those operating successfully in the meat trade knew their suppliers and their product and also their customers’ requirements. Their trading and craft skills matched sales to purchases and ensured continued survival and success. Classification was seen as merely a prop to less efficient and knowledgeable traders; Price clarity and market transparency were only demanded by meddling officials and bureaucrats. The tried and tested mechanism of supply and demand was claimed to work well enough for everyone else; The proposed system of visual inspection and appraisal would be – because of its subjectivity – inaccurate, inconsistent and not amenable to national standardisation; 25 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep • • • A rapid visual inspection of the hot side that forms the basis of classification was held to be totally inadequate to assess a carcase for trading purposes. It would be unable - with just a few descriptive variables - to encompass and describe the widely variable carcase output from GB, let alone provide an adequate guide to carcase ‘quality’ and the almost infinite number of different market requirements; The prevalence of the auction market in beef and sheep marketing in the early days of classification posed major difficulties in passing back information to the producer. The selling of sheep in batches or lots through the ring rather than as individual animals added to this problem. In any case the ring was seen as the ultimate arbiter of quality by both parties involved (a view not seriously challenged by the livestock auctioneers and their shareholders). Moreover, if these animals were subsequently classified any information produced would be of academic interest only to the slaughterer; Many abattoirs bought cattle and sheep direct from the producer at a ‘flat rate’, that is at a single price for the whole batch, irrespective of variation in carcase characteristics. This system was claimed to be easy to administer (but offered little incentive to the producer to improve his output) and slaughterers feared two related consequences of classification and any grading system that might go with it: a) That by changing to classification and offering premiums and imposing discounts they would have to pay more for their stock overall, and b) They might lose some producers who, fearing discounts on their stock, would switch supply to competitors who remained outside the classification schemes; • Classification might drastically reduce traders’ flexibility to use their skill in matching a variable supply of carcases to customers’ requirements. In particular marking or labelling with the classification information would present a ‘trading strait jacket’, which would seriously restrict the day-to-day negotiations on price that would normally accompany a slight variation from customers’ requirements. A written specification – in classification terms – would represent the handcuffs and chains to complete the strangulation of trade. Anecdotal evidence of traders removing classification labels from carcases before dispatch illustrates most graphically this fear. • Traders were concerned that classification would become a ‘quality stamp’ that would make the ‘smart’ selling of for example, overfat or carcases of poor conformation (below average or ‘inferior’ carcases in some traders view) more difficult; • Traders objected to funding a scheme (from MLC levy) of no benefit to them. Many of these points still resonate today in any discussions with stakeholders from both sides of the industry about classification, and many similar views were encountered during the fieldwork for this project (see Section 10 -The Views of the Industry Towards Classification in 2008) 26 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 5. THE TECHNICAL CLASSIFICATION BASIS AND DEVELOPMENT OF 5.1 Carcase Traits of Value in Commerce The concept of classification as conceived by the Verdon-Smith Inquiry report and in the Agricultural Act that followed it, was that it should be a language of use to those involved in the sale and purchase of meat and livestock. Classification would therefore be expected to describe carcases in terms of their commercial importance, throughout the meat supply chain from farm to retailer. It was generally agreed at the time that the commercial value of a carcase to a retailer depended to a large degree on three factors: • • • The yield of saleable meat (SM%)- usually expressed as a percentage of carcase or side weight; The distribution of saleable meat between the higher and lower-priced cuts and The characteristics (quality) of the saleable meat. It is not possible to directly assess any one of these characteristics from the carcase, so for classification to be useful the measurements taken should be related to, or be able to predict, these economically important factors. If market signals are to find their way back to the point of production then these factors should also be relevant to all in the meat supply chain MLC held a series of consultation meetings with all sectors of the industry throughout GB at the time of the development of its classification system. The importance of these factors was agreed and there was further consensus that the following carcase characteristics were most important in trade: • • • • • • Carcase weight, and the definition of what a carcase comprises – the ‘dressing specification’; Degree of fatness or ‘finish’; Conformation or beef shape; Sex/Category (steer, heifer, young bull. mature bull, cow); Age; Meat characteristics – primarily those that might influence eating quality. In addition, other characteristics held to be important by some included: • • • • Fat quality, mainly colour and avoidance of yellow fat; Lean colour, avoiding dark, sticky meat; Uneven external (subcutaneous) fat distribution; Excessive internal fat (kidney or cod/udder fat). 27 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep The field work carried out for this project (see Section 10) showed that in general all of the above are still relevant for the trade today, but because of changes in certain systems of beef and lamb production and changes in the final market, certain factors are seen as more or less important (for example the colour of fat – yellow fat is often associated with grass-fed beef, believed by some to have enhanced nutritional qualities). 5.2 The Validation of Potential Measurements At the time of these early discussions MLC was also beginning major programmes of evaluation of the important beef and sheep breeds and the lines produced by the major pig breeding companies. This work covered production traits and carcase and meat evaluation in great detail, across a range of production systems, on a scale larger than any similar programme undertaken elsewhere up to that point. Carcase appraisal was based on physical dissection on a representative sample of carcases and across all species every carcase was subject to a battery of simple measurements. These would prove invaluable when the data were analysed to examine the value of alternative measurements for classification purposes. (For a comprehensive review of these programmes see Kempster et al., 1982). Exhaustive analysis of the data together with information collected from commercially classified beef and sheep carcases showed that: • • • • • • • • External or subcutaneous fatness measurement was a good indicator of saleable meat yield; A trained operator could make an accurate and consistent visual assessment of that fat cover; Visual assessment of subcutaneous fat cover was more a precise predictor of SM% than any instruments available at the time for fat depth measurement; Conformation, that is ‘blockiness’ or shape – essentially a judgement of thickness of flesh in relation to bone length – was related to meat thickness or depth in steaks and retail joints, a factor held by the trade to increase the saleability of a cut; A trained operator could make an accurate and consistent visual assessment of carcase conformation; The combination of carcase weight and sex together with assessments of conformation and fatness gave a very useful prediction of SM% one that was eminently useful in classification terms (see Table 2). Accuracy and consistency of visual assessments improved markedly when conformation and fatness scales were augmented by photographic examples of each scale point; Beef carcases of good conformation – that is of a blocky shape with thick flesh and rounded profiles – tended to have slightly higher SM% through having slightly lower amounts of bone (that was and still is almost completely removed during retail preparation of beef), but for sheep the relationship was less strong; 28 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep • Such carcases also had a small but measurable advantage in terms of distribution of SM% in the higher-priced cuts (principally the back and hind quarters). Table 2. Cattle - Saleable Meat Yield as a Percentage of Carcass Weight by Classification Grid (using a standard cutting method) CONFORMATION FAT CLASS (1 low, 5 high) 1 2 3 4 5 E 78 75 72 69 66 U 77 74 71 68 65 R 76 73 70 67 64 O 75 72 69 66 63 P 74 71 68 65 62 Source: MLC (1980a) From Table 2, it can be seen that fatness and conformation affect SM%, both separately and in combination, but it is fatness that has the greater effect. 5.3 Measurements Chosen 5.3.1 The MLC beef scheme The carcase characteristics finally included in the MLC scheme were chosen on their ability to satisfy the following criteria: • • • • To achieve a sensible balance of simplicity and precision To be capable of being applied to hot carcasses on line To be as 'objective' as possible To be easily understood by all users. Initially 5-point scales were chosen for both conformation and fatness assessment; in the language of the techniques a 5 x 5 grid was established. This was a compromise in the face of, on the one hand trade pressure for fewer points (a 3 x 3 was considered quite sufficient) and on the other, MLC data which showed 10 or 15 points could be consistently applied by trained operators and which provided useful increases in precision (the EU beef scale that followed allows for up to 15 sub classes of conformation and fatness, and is currently employed in at least one plant in the UK). 29 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Both visual assessments of conformation and fatness were based on photographic reference scales. In the case of fatness, the scale ranges were defined by percentage of subcutaneous fat in the carcase as found by dissection data of thousands of carcases. (see Table 3). This provided an objective foundation to the all-important assessment (in terms of predicting SM%) of fatness. Table 3. Subcutaneous Fat % Ranges Defining the MLC Beef Classification Fat Classes. Fat class 1 2 3 4 5 % Subcutaneous fat in carcase Less than 4.5 4.5 – 7.4 7.5 – 10.4 10.5 – 13.4 13.5 or more Source: Harrington, (1973) In the original MLC scheme, carcases were described by visual appraisal of fatness and conformation on a 5 x 5 grid. Table 4. MLC Beef Carcase Classification Grid in Use Before Adoption of EU Scheme FAT CLASS (1 low, 5 high) 1 2 3L 3H 4 5 CONFORMATION 5 4 3 2 1 Z In addition, the following were recorded as part of classification: • • Identification of the carcase, central to payments, trading confidence and veterinary inspection; Carcase weight determination at a prescribed time after slaughter, according to agreed and verified carcase presentation and hot to cold weight rebates; 30 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep • • • Sex / category; Patchy or uneven fat development; Excessive internal fat (KKCF); Subsequent changes to the fat and conformation nomenclature included: • • Subdivision of fat classes 3 and 4 into L (low) and H (high) leading to a seven point fat scale to give more discrimination at important fatness points for trading; The addition of a very poor conformation class (Z) to cover extreme dairy cows. An average carcase from the centre of the grid would be classified as 3L 3 (that is 3L for fatness and 3 for conformation). A carcase of low fat cover and good conformation would be classified a 2 4, and so on, fatness being described first and conformation second. Fatness was allowed to play its full part in the assessment of conformation. No attempt was made to see through the fat to appraise the underlying ‘muscularity’, as was done in some other European schemes. This point led to misunderstanding and some ill-informed criticism. A further point of detail is that only in the assessment of conformation do the qualitative and judgemental terms ‘good’ and ‘poor’ appear in classification terminology. While classification language strictly avoided inferring ‘quality’ to a carcase, such was the trade agreement that ‘blocky’ conformation was to be desired and ‘rangy’ was not, that the terms good and poor conformation were adopted. 5.3.2 The EEC/EU beef scheme The adoption of the EU Beef Carcase Classification scheme in 1981 required the following changes: • The addition of a new definition for fat class 1 and re-numbering of the other fat classes accordingly; • Adoption of E, U, R, O, and P to replace the numeric conformation scales; • Conformation was described first and fatness second (e.g. R3, E2, etc.) In addition, every conformation and fatness class could be subdivided in up to three sub classes, +, average and -. In theory, then, a 15 x 15 grid could be used. UK opted to subdivide conformation classes U, O and P into + and – and fat classes 4 and 5 into L (low) and H (high) to give more discrimination close to some important trading boundaries of market acceptability. Thus the grid used by most beef slaughterers in the UK at the time of writing this report is as shown below: 31 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Table 5. The EU Beef Carcase Classification Scheme Grid as Used in UK FATNESS CONFORMATION 1 2 3 4L 4H 5L 5H E U+ -U R O+ -O P+ -P With the exception of the above amendments (mostly due to the EU scheme) the Beef Carcase Classification scheme has remained remarkably unaltered over the years. Critics may point to this as a reason for it still not being fully taken up by the industry; supporters on the other hand might point to the farsightedness of the scheme’s architects. 5.4 Measurements Rejected for Cattle While inspection of the cut surface of the ‘eye muscle’ (M. longissimus dorsi) and overlying fat measurements at the 10th rib quartering point would be useful to judge muscle depth, fat cover, lean colour and marbling fat (of possible use in estimating aspects of eating quality) it was judged impractical for use in classification schemes for beef. At first sight, this procedure has appeal, not least because many sides would be quartered cold in the chillers 24h after slaughter before dispatch, or on entry to the cutting hall. The practical problem however, is that classification staff need to be situated at the weighing point at slaughter to identify the carcase, authenticate the carcase dressing specification, record its weight and complete documentation for payment (and, until relatively recently, certify it for support or subsidy purposes). In addition as a parallel consideration to classification, the carcase needs to be reconciled with the offals at the slaughter point for health inspection purposes and other veterinary procedures, thus making the hot weighing point the pivotal focus point for carcase appraisal. Recent developments in requirements for traceability, identification (animal passports) and additional removal of tissue samples for analysis (after BSE and Foot and Mouth disease) seem to reinforce the hot weighing point as the hub of these critical operations, requiring the attendance of classifying staff. Quartering measurements were considered by MLC but dismissed on the grounds of expense of a second appraisal of the carcase. But technology in the meat plant for data capture and carcase identification continues apace 32 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep and the utility of these additional measurements should be kept under review. These aspects will be considered further in a subsequent section of this report. MLC also carried out much research and development on the value of fat depth measurements taken by a variety of devices – probes of both simple and sophisticated construction. In common with work elsewhere they found that one or indeed several probe fat dept measurements were less accurate in predicting saleable meat % than a trained classifier’s subjective assessment of fat cover, on either 5, 7 or 15-point scales. (Chadwick and Kempster, 1982; Kempster et al., 1986) This is partly due to the patchy nature of bovine subcutaneous fat and the added unevenness caused by manual or machine-aided hide removal. Whereas a trained classifier could take this into account visually, a fat depth at one or two points would be inadequate to account for this variation. 5.5 Sheep Carcase Classification It could be said that sheep carcase classification has played a secondary role to that of beef on the European stage, reflecting the low volume of sheep production in most member states and the absence of a mandatory scheme. The development of classification in the UK - its aims and objectives, the influence of meat trade politics and the technical basis underpinning the assessments used - is very much a reflection of the beef story, but played out a few years later and with varying amounts of déjà vu. However in 2008 the GB sheep industry finds itself at a difficult, possibly crucial, point. It can highlight the central role that carcase classification has played in terms of producer education and realignment of their thinking towards market requirements for carcase characteristics. The earlier MLC ‘Meeting the Market’ and ‘Target Area’ campaigns and latterly the EBLEX Better Returns programmes were central in this process. But, at the same time, evidence from our interviews for this project (set out in Section 10), point to the problems now occurring through widespread differences between abattoirs in lamb carcase specification and dressing standards. This is having a deleterious effect on producer confidence in standards of assessment and the classification scheme as a whole and indeed on the entire deadweight marketing system. The following section gives an outline of the origins of Sheep Carcase Classification in GB. A more important consideration – where do we go from here? – Is contained in Section 9. MLC introduced Sheep Carcase Classification somewhat later than that for pigs and beef since the basic information on carcase variability of the many breeds and crosses across GB was not available at the time of MLC’s establishment. Following the collection of much data across the major carcase types marketed throughout GB a pilot classification scheme was 33 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep introduced in 1973, developing into a national scheme by 1975 with some 12% of the national lamb crop being classified. As with beef, visual appraisal of conformation and fatness were combined into a two-way grid, with fat class being defined in terms of percentage subcutaneous fat and conformation defined by silhouettes and later by photographs. The case for using visual appraisal at the time was – as with beef (outlined in Section 5.3) – that it provided an adequate description of carcase composition and, equally important, there was no realistic prospect of using objective measurement. The industry agreed that over fatness was the major problem facing lamb, representing a significant barrier to increased demand. Conformation was held to be less important, since lamb was sold at retail more or less universally with the bone in and the usefulness of conformation as an indicator of meat yield (as is the case for beef) was not valid. In addition, measurements on the cut surface of the rib area were not considered, as sheep carcases were not frequently quartered in the abattoir. This still remains the case at the time of writing this report. The grid was based on ten class combinations of conformation (Extra, E; Average, Poor, C; and Very Poor, Z) and fatness (Very Lean, 1 through to very Fat, 5). Only fat classes 2, 3 and 4 were divided into Extra or Average conformation and carcases of Poor and Very Poor conformation were not assessed for fatness. The asymmetric nature of the grid was justified on the basis of very few carcases falling into the extremes of fat classes 1 or 5 and Poor or very Poor conformation (see Table 6). In addition, carcase weight and category (lamb, hogget and sheep) together with an appraisal of excessive internal fat development were included as fundamentals of the scheme. Table 6. The Sheep Carcase Classification Grid and Proportions of Carcases Falling in to Each Cell in 1975 Fat Class C O N Subcutaneous fat % F O Extra (E) R M Average A T Poor (C) I O Very Poor (Z) N 1 2 3 4 5 < 6.0 6.0-9.9 1.1 14.017.9 6.5 >17.9 0.4 10.013.9 12.3 16.6 47.1 10.5 1.6 3.5 0.4 Source MLC (1975) 34 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Since 1975 the Scheme has developed along similar lines to beef, in that the important fat and conformation classes were subdivided (+ and – for conformation, L and H for fat) to give more discrimination. Boundaries between some classes were adjusted to take account of official support scheme influences and, most importantly latterly, the advent of the EU Sheep Classification Grid. The first sub-division was that of the central fat class 3, into L and H. Data published in 1980 showed the importance of fat class in defining leanness of the retail product. If the amount of lean (fat-free) meat is calculated from Table7 (below) for an 18kg carcase it differs by 1.5 kg between fat class 2 and 4. Table 7. Sheep – Saleable Meat Yield as a Percentage of Carcase Weight by Classification Grid (using a standard cutting method) FAT CLASS 1 SM% 94.5 Fat 4 trim% Lean% 64 of SM Fat% of 10 SM 2 93 6 3L 91.5 7 3H 90 8 4 89.5 9.5 5 85.5 13.5 59.5 57 54.5 52 48 15 17 19 22.5 24.5 Source: MLC (1980b) The scale and standards used in GB for sheep carcase classification is effectively the same as the EU grid as shown below in Table 8. 35 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Table 8. Lamb Classification Grid in Use in GB at Time of Writing Fat class Increasing fatness Conformation class Improving conformation 1 2 3L 3H 4L 4H 5 E U R O P 5.6 Meat Quality Characteristics It was appreciated by MLC from the outset that classification had less predictive value in respect of meat eating characteristics. In the 35 years of classification proper this omission (as seen by the meat trade) has been a constant source of criticism and calls are still made for this to be rectified. This is especially the case for beef, where eating quality problems tend to be seen as more significant than those for pork or lamb. Critics point to schemes such as the USDA beef grading scheme and the Meat Standards Australia (MSA) beef scheme which purport to identify and reward carcases more likely to eat well – in terms of tenderness, juiciness and possibly flavour (Yeomans, 2008) The view of those that developed the classification schemes such as MLC (backed by much research and development in the UK and overseas), was that while some intrinsic factors in the animal may well be important in affecting meat quality, the overwhelming influences (both good and bad) on meat eating quality occur immediately before and soon after slaughter, through the all-important ageing and tenderisation process extending to 10 to 14 days post mortem and beyond. (See MLC, 1990, 1992 and 1994). Few observers would deny that breed, feeding and sex for example, to name the most frequently mentioned ‘farm effects’ do have some influence on meat eating quality (at least, within the range of variation seen in GB). What is undisputed is that the overwhelming body of research available points to the relatively minor effects of these in comparison with other factors outside the producers’ control. (Tatum et al., (1999); Maher et al., (2004). 36 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Additionally, a point that supports MLC’s exclusion of meat quality characteristics can be found in Cmnd paper 2737 – a statement to Parliament by Ministers in 1964 entitled ‘Marketing of Meat and Livestock’. The document concerned the proposal to establish MLC and its functions and describes classification as “related primarily to the needs of firsthand selling and the wholesale trade, although it might have some application and value to the retail trade.” So it would seem that Verdon-Smith’s vision of a two-pronged scheme that related to ‘eatability’ as well as ‘cutability’ (akin to USDA grading) seems to have been refined in this Command paper to those areas useful to transactions at the farm gate and slaughterhouse, that is yield or ‘cutability’. Thus MLC spent considerable time and effort in the 1980s and 90s developing ‘Blueprints for Beef’ as well as for lamb and pork. This vade mecum of good practice from farm to kitchen has been shown to both raise overall eating quality and reduce the inherent variation by a measurable and commercially significant amount (Richardson, 2005). MLC argued, with some force, that raising the general standard across the spectrum is more effective than trying to identify extremes of eating quality in individual carcases by some (as yet) unknown technique. MLC’s view was consistent over the years and it is only very recently that emerging technology for more rapid sensor measurement of meat quality may give cause for reflection and updating of this view. It is likely however that these measurements are best suited to process control and information feedback in dedicated supply chains, rather than for classification purposes. This aspect is dealt with in detail in Sections 7 and 8. 5.7 Checking of Classification MLC was well aware that visual assessment of conformation and fatness would be criticised on the grounds of subjectivity, accuracy and consistency. It was well known through experience and also shown in controlled comparisons, that an operator when making his appraisal of a carcase will be influenced by the generality of the carcases he sees on a daily basis. For example in the North East of Scotland the predominant type marketed in the late 1970s would be small, well finished, beef breed carcases, whereas in the East of England larger, less fat and ‘plainer’ (poorer conformation) cattle would be the norm. The appearance of a Scotch beef type carcase amongst a run of plain cattle (and vice versa) may well present a challenge to the classifier in terms of accuracy of assessment. Accordingly a system of supervision, checking and standardisation was put in place involving hierarchical checks of classification officers by Divisional, Regional and National MLC Headquarters staff. 37 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Today the EU scheme delivered commercially by MLCS Ltd is operated in the same way. Over and above this, standards in England and Wales are scrutinised by the Inspectorate of the Rural Payments Agency (RPA) of DEFRA on behalf of the Government in all plants (and by equivalent organisations in Scotland and Northern Ireland), irrespective of who carries out the classification and now, overseen from time to time also by a panel of experts from EU Member States (see Section 9 – The Legislative Dimension) In the development stage of classification MLC were candid about the results of checks and some results from the proving phase are given below in Table 9. The commentary to this table (Harrington, 1973) offers the view that at the time, these results would be difficult to improve upon in the practical environment in which they were undertaken. Table 9. Classifiers Results for 1,000 Cattle Carcases Classified as 3 3 (average for fat and conformation) by the supervisory officers FAT CLASS (1 low, 5 high) 1 2 3 4 5 5 47 CONFORMATION 4 3 67 831 15 2 2 37 1 1 Source Harrington, (1973) Unfortunately, while this is probably the case, it seems likely that the trade were seeking perfection and rarely if ever subjected themselves or their buyers to similar checks. Differences between classifier and checker, however few, were seen as failures and seized upon by critics of the scheme then (and now) as evidence of their point of view. MLC rarely publicised results of staff checks after the proving phase. 38 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 6. OBJECTIVE MEASUREMENTS IN THE EU BEEF CARCASE CLASSIFICATION SCHEME 6.1 Background Council Regulation 1208/81 of April 1981 laid down the defining framework for the EU Beef Carcase Classification Scheme. It is worth noting again here that the regulation’s preamble (unlike the pig scheme which followed it) did not cite the establishment of fair prices for producers as a reason for bringing it forward, but rather for the purpose of recording prices and for intervention buying in the beef and veal sector. Following a development period, legislation in 1990 brought mandatory status to the scheme as well as dealing with related matters such as carcase marking and labelling (see Section 9 – The Legislative Dimension) One major change to the scheme however was contained in Commission Regulation 1215 / 2003 (amending Commission Regulation 344/91) which allowed for the use of objective equipment to measure conformation and fat class as an alternative to ‘direct visual assessment’. This followed a number of ad hoc trials of Danish, French, German and Australian Video Image Analysis (VIA) equipment in several member states. Pressure from some member states for the introduction of objective methods seemed to result from industry criticism in those countries over variability in standards of application of visual scores. The 2003 Regulation sets down the procedure by which objective methods are to be approved for use for beef carcase classification (a “certification test”). In summary: • The results obtained from the machine are compared with those obtained from a panel of 5 licensed experts. • Points are allocated based on the “error” of the machine against the median of the panel scores. The machine must achieve a minimum number of points for both fatness and conformation to pass the test. • There are minimum requirements for bias and slope of the regression between the machine classification and the panel median (again separate criteria for fat and conformation). Assuming a successful outcome to the certification test the member state may grant a licence authorising automated classification for application in their territory or part thereof. The fact that licenses are issued by the member state means that it is almost impossible to obtain details of the certification tests (the European Commission maintains that they remain the property of the member state) and there are no published Commission Decisions (unlike the situation with pig carcase classification. Two member states have adopted VIA technology on a significant scale, with 28 installations in France (out of a total of 270 plants classifying) and 25 in Ireland (out of a total of 32 plants) in place in 2007. This is reported to have 39 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep increased subsequently. Objective classification accounted for 38% of classifications in France and 94% in Ireland in that year. In the case of Ireland, added incentive was given by the National Beef Plan of 1999, which called for ‘automated grading’ as an important part of the strategy to reestablish the position of Irish beef. Further impetus was given in the form of a capital grant for the equipment from the Irish Government. Denmark, whose beef industry makes up a relatively small part of their agricultural output, also has VIA in operation in a very small number of beef plants. It is understood that the Danish authorities have not formally certified the equipment and use continues on a trial basis. In Denmark, each equipment classification result is checked by an operator, who can override the result and record a visual assessment where necessary, should the two differ. 6.2 Technical Considerations Section 5, outlined some of the measurement techniques evaluated and eventually discarded in favour of visual scores for estimating conformation and fatness. At that time, objective methods of fat measurement were largely restricted to probes (often developed for measuring subcutaneous fat depth in pigs). Objective measurement of conformation was in its infancy and developments almost exclusively pursued laboratory techniques from other industries to measure shape, volume or contours. It was perhaps not surprising that these techniques were inappropriate for hazardous abattoir conditions and unsuitable for use at that time. In developing suitable methods of objective classification the approach adopted by most research groups was that of trying to predict the conformation and fatness scores (often defined by a panel of experts assembled to assess carcases at the same time as the equipment under evaluation). Indeed the criteria laid down in the detailed rules are defined in these terms (see above). In many cases carcase dissection work was not carried out because of the prohibitive cost; the opportunity to evaluate the machine against a more fundamental baseline - for example saleable meat % - was thus lost. A major issue of the type of equipment that has been adopted/tested to provide more objective results, is the potential for there to be a bias. As the EU conditions of approval now stand equipment has to be calibrated to predict conformation and fat class (as defined by an expert panel of classifiers). The data used by the machine is often very different indeed from that gathered by the classifier. For example, • A classifier will assess fat cover by not only estimating the degree of fat cover in terms of area, but also by taking into account the depth or thickness of external fat, while a machine may be analysing proportions of light and dark areas. 40 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep • For conformation assessment, the regulations refer to the degree of ‘roundedness’ of a carcase and its effect on conformation - this is likely to be assessed differently by man and machine. A machine may be estimating carcase volume or weight /length ratio as a predictor of conformation in its calculations; classifiers almost certainly will not do this knowingly. So a machine - and this applies to VIA as well as many other techniques such as Near Infra Red Spectroscopy (NIR) – has to be first calibrated against one or more set of carcases during development and then validated against another set of carcases under commercial conditions in the certification test prior to commercial use. Clearly the samples of carcases used to calibrate and validate the equipment, is of crucial importance in terms of its representativeness and variation. The defined criteria limit the bias - consistent over or under estimation of the predicted characteristic - that can be allowed in the certification test. Biases can, however, occur when these differ from the carcases the machine “sees” in everyday use. In addition conditions in the abattoir (lighting, carcase presentation etc) may also differ and affect the results. 6.3 VIA in Some Member States 6.3.1 Ireland Allen and Finnerty (2000) reported the results of two trials of three makes of Video Image Analysis (VIA) equipment evaluated in 1999 and 2000. The Danish BCC 2 (SFK), the German VBS 2000 (E&V) and the Australian VIAscan (SASTEK) were compared against visual classification (by an expert panel) and, in one trial, also against dissected carcase saleable meat %. The results suggested that there was little to choose between the machines – either when compared against the panel of classifiers or against dissection – and in general they were more efficient at predicting conformation class than fat class. After calibration the overall prediction rate across all the machines was 96% and 77% correct to within + / - one subclass (using a 15 x 15 grid) for conformation and fat, respectively. Saleable meat % was predicted accurately by both man and machine: the residual standard deviation of prediction (rsd) was 1.2 to 1.3% for the panel and 1.1 to 1.2% for the machines (the EU pig grading scheme regulations, for example, require equipment to predict % lean with a maximum rsd of 2.5%). In the Irish trial carcases given U conformation by the panel were consistently given R by the equipment and carcases judged conformation class R were also frequently given O conformation class by the equipment. This is an example of bias, which occurred after calibration of the equipment. Ironically much of the producer pressure for automatic systems in Ireland was as a 41 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep result of Ministry classifiers allegedly awarding too few U classes for conformation. The conclusion of the authors was that while all makes of VIA equipment had performed well in predicting the panel’s scores for classification and very well in predicting saleable meat %, none of them would be likely to pass the EU requirements for approval as they were drafted at the time (2000). There followed a protracted period of negotiations in Brussels, informed by the Irish results and, after much debate in the Beef Management Committee and elsewhere, acceptance criteria were defined (European Commission regulation 1215/2003). Following agreement of the criteria, an Irish certification trial was undertaken with the three pieces of equipment already described. All three passed the criteria and the German system was chosen and subsequently installed in some 25 beef classifying abattoirs, with a government grant. The machine is reported to have resulted in a marked reduction in disputes over classification. This is in part due to the robust stance that the supervising authority has taken on the classifications awarded (the machine is now the standard and classifications given cannot be changed). There is some concern over the performance of the equipment on fat classification, but this is minimised as an issue because the current price differentials for fat class are minimal. 6.3.2 UK cattle At the time of writing, trials on beef carcases (at least according to the procedure required for certification) have not been undertaken in the UK. Difficulties over agreeing a single carcase dressing specification delayed implementation of a trial planned initially in 2004, although this has been resolved during 2008. A small number of abattoirs have carried out their own in-plant evaluations. There would appear to be no longer any great appetite on the part of the industry or its regulators for cattle trials in GB, although there are still some discussions in Scotland and particularly Northern Ireland on the value of undertaking trial work. 6.3.3 UK sheep Since there is no mandatory EU classification scheme for sheep, let alone an objective alternative to visual assessment provided in the regulations, the significance of VIA as an alternative to visual classification is rather different from that in cattle. Nonetheless, extensive trials of German-manufactured VIA equipment have been carried out on sheep carcases in UK recently by MLC in association with HCC, LMCNI and QMS (see - An evaluation of the use of video image analysis to predict the classification and meat yield of sheep carcases. [EBLEX et al, 2007]). 42 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep An objective of the work was to evaluate VIA as a means of predicting saleable primal meat yield as well as a potential alternative to visual classification. Video image analysis provided a repeatable, automated objective assessment of sheep carcase conformation and fatness. Video Image Analysis was as accurate and more consistent than the expert classifiers at predicting conformation, however it was less accurate and less consistent than the expert classifiers at predicting fatness. VIA predicted both meat yield and primal joints weights well. The evaluation demonstrated that VIA was more precise in predicting meat yield than current EUROP class/sub class based systems (Rius’ Vilarrasa et al, 2007). 6.3.4 Future developments It would appear that while conformation can be adequately measured by VIA, there are still unresolved technical problems in the assessment of fat cover of beef and lamb carcases by VIA. Putting this concern aside however, it also seems illogical to program a sophisticated electronic device to attempt to mimic a subjective visual operation (which itself is accepted as imperfect). A more logical approach would be to use the machines to predict saleable meat %, or lean meat percentage, and to re-organise the BCC scheme on this basis together with price reporting and associated market management measures. Many observers would discount the prospect of such a radical rethink of the EU scheme and associated market management measures on this scale, but others may have opted for machine introduction as a first step of a long journey. A further complication of machine measurement is the finding that slaughterers are very wary of introducing better incentives for good carcases (and bigger discounts for poor ones) and equally if not more cautious in moving towards payment on a lean meat % basis. Just as pig slaughterers, when faced 20 years ago with the possibility of lean meat payment schedules facilitated by EU Pig Grading and automatic-recording probes, were cautious of change lest they misjudged any new system and lost producers to competitor slaughterers, so it remains today with the beef sector. For beef in summary, an imperfect classification system is just one of many deficiencies in the current beef marketing system. The replacement of visual assessment by VIA would represent a very small overall improvement to the status quo. The maxim “if it ain’t broke, don’t fix it” has been encountered more than once in our interviews. For sheep however, the situation is somewhat different, and as discussed in Section 10 - The Views of the Industry Towards Classification in 2008, parts of 43 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep the industry may be more willing to contemplate a more radical change because of the perceived problems with the operation of the existing sheep classification system. Very large-scale slaughterers for example, who cut and pack for supermarkets, could perhaps use VIA to better control and monitor butchery yield and carcase selection. The ability of VIA to predict cutout yield and variation in higher-priced cuts could be helpful especially when filling supermarket specifications. Given the present inactivity over wider SCC implementation in the EU, this would largely be a business decision for the plant(s) concerned, rather than a development of an official scheme, but some may wish to see it adopted for commercial reasons in the UK on a regional or even countrywide basis. 44 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 7. DEVELOPMENTS IN PREDICTING EATING QUALITY 7.1 The Importance of Eating Quality As outlined in Section 5, an ideal classification system would describe with some degree of reliability all the important factors important in buying and selling carcases. To the consumer the overriding quality attribute – on the plate, at least – would be eating characteristics, principally: • • • Tenderness; Juiciness; and Flavour. The relative importance of these varies between consumers, and is also affected by the cut of meat and other influences. In the case of beef it is generally agreed that tenderness is the most important - being the first character to assert itself. The reasons given by MLC in the early 1970s for their approach to the importance of meat eating quality in classification have already been summarised. Perhaps a relevant set of questions 30 years on would be: • • • Has eating quality become more or less important? Has the technology of predicting eating quality improved? Has classification, or our use of it, evolved, so that other factors (such as eating quality) can be included? 7.2 Has Eating Quality Become More or Less Important? Eating quality, in beef at least, would seem to be just as or perhaps more important now compared with 40 years ago. In real terms meat is cheaper than before and the choice of protein in general and meat dishes in particular has widened out of all recognition. Moreover, the meal experience has perhaps diversified into at least two separate types - the weekday versus the leisure meal, and expectations for each are different. Thus when beef – still the premium meat - is chosen for grilling or roasting at the weekend or special occasion the eating experience must, above all, be pleasurable. At the same time to a greater extent than 40 years ago there are growing sections of the beef and lamb supply chain that are attempting to differentiate their product (e.g. direct sale by farmers of beef with various attributes –local, organic, natural, matured etc; and the premium ranges of the large supermarkets), all of whom are also trying to make the point that their beef and lamb tastes better because of these attributes, and all of whom are keen to adopt new measures of eating quality. 45 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 7.3 Has the Technology Improved? It is perhaps an overstatement, but not a great one, to say that 40 years ago there was no technology – or at least precious little – to help predict the likely eating quality of a carcase. The craft butcher used his eyes, fingertips, knowledge of the animal’s background and his experience. The meat technologist might have resorted to a pH meter and – for insurance - a thermometer. A lock on the chiller door for three weeks might also have been helpful. Today, a range of new techniques has been, or is being, developed. Sensors to detect levels of a muscle substrate or enzyme, Near Infra-Red Spectroscopy (NIR), or ISFETs to monitor muscle pH over time, are just a small selection. Some are suitable for in-line use, perhaps at or near the classification point while others may be used off-line, requiring meat samples to be removed from the carcase and the results reconciled later with the carcase or cuts or meat (bringing in to play a different set of requirements for data capture). 7.3.1 Problems of meat quality prediction Despite many decades of research in dozens of meat research institutes throughout the world, the underlying science of the causes of variation in meat quality remains imperfectly understood. A review of the processes during growth, around the time of death and in the post mortem period that affect the ultimate eating quality is outside the scope of this paper and comprehensive reviews are in the literature. Briefly, toughness is affected by: • • • • • • Intrinsic parameters including rate of growth, Amount and type of collagen (gristle), Muscle fibre type, Proteolysis (post mortem degradation of structural proteins) is of crucial importance as is the opportunity for it to continue for up to two or three weeks after slaughter - the 'ageing', ‘maturation’ or conditioning process. Extrinsic factors of importance include 'cold shortening', a toughening brought about by too rapid chilling of the carcass too early. Finally, the cooking process. The unfavourable relationship between toughness and degree of doneness is well known, as is the preference in the UK for well-done meat, or at least the aversion to ‘bloody’ meat. In addition many of the techniques for predicting meat quality have limitations: • Many techniques developed were designed for use when the meat had reached a stable point in terms of post-mortem glycolysis (say 24h after slaughter). Therefore many of these would be expected to show 46 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep • • • little promise as a prediction tool when used within the first hour after slaughter. Many techniques measure at a single point, often only a few square mm in size, and may therefore be affected by variation in the structure of muscle (collagen, inter and intramuscular fat or membranes). Due to the different function and characteristics of the musculature (with over 250 separate muscles in pigs, for example) it has been shown that correlations between muscles in physiology and eventual quality are not high. The M Longissimus dorsi (the ‘eye muscle’) accounts for less than 10% of muscle weight but it often represents the bulk of our knowledge on meat quality and clearly more work is necessary on other muscles. Thus a sensor, which attempts to examine more than a fraction of a percent of the meat in a carcass must increase the chances of success. Intuitively, an assay type of test (to detect biochemical activity or circulating level of some compound in the meat) might be expected to be a better predictor than a physical test at one small point such as tenderness of a muscle sample. 7.3.2 MLC’s sensor programme In the 1990s, MLC funded a number of projects aimed at developing and testing a wide range of devices for meat quality measurement in pork and beef. The programme involved three approaches: • • • Evaluation of existing meat quality sensors Exploration and development of sensors used by other industries Development of novel sensors The use of a sample removed on-line for quality measurement was discounted at the start of the programme due to the expectation that samples removed from a hot carcase would behave abnormally in terms of rigor development and shortening. The active programme ended in the late 1990s after the results of many tests were equivocal or worse, finding the sensors available at the time lacked the required precision for predicting eating quality on an individual carcase. A watching brief has been maintained subsequently. The technique showing the most promise at the time was that of - Near Infra Red Spectroscopy (NIR) -has and this has continued to be studied by several teams of meat scientists across the world. 7.3.3 Near Infra Red Spectroscopy (NIR) NIR has been used to measure quality attributes in many foodstuffs and animal feeds over the years, e.g. flour, fruit and silage and since the completion of MLC’s Sensor programme, two teams, one under USDA management and one at MIRINZ New Zealand, have been refining NIR for 47 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep commercial use. At the present time the technique is being marketed only in the US as a plant-ready tool. There remains a need for further calibration for UK cattle to fully evaluate the system in this country. Research is in progress in Britain, for example EBLEX have funded work to evaluate the US device under commercial conditions in the UK. Scottish Agricultural Colleges (SAC) are leading a programme of work assessing measures for meat quality, including NIR, the MIRINZ tenderometer, meat colour, slice shear force, temperature and pH, as well as live animal and carcase assessment, but as yet no results are publicly available. 7.4 Has Classification Evolved? The third part of the question rose at the beginning of this section: has classification, our use of it, or even our expectation of it, changed since its introduction? Certainly the EU scheme (objective measurements apart), as outlined earlier, remains remarkably similar to the scheme as first introduced. Its use remains central to price reporting and other measures to improve market transparency. On the other hand, support measures (that in the past required some form of standardised carcase assessment) have decreased greatly in importance and look set to further diminish in the face of more administratively attractive single farm payment schemes. A later section deals with the European meat industries’ attitudes to, and use of, carcase classification – possibly one of the most important factors under consideration. It will consider whether there is a desire or need to enhance the scheme with some form of assessment of eating quality - as is carried out for example in the USDA Beef Grading Scheme or the Meat Standards Australia (MSA) system - or indeed with other measurements of relevance in trading. 7.5 The Way Forward for Measuring Eating Quality From the information currently available it would seem that: 1. It remains the case that no cost-effective technology is available to predict meat eating quality with sufficient accuracy in the individual carcase by testing at the immediate post slaughter phase or soon after. There may be a case however for some technique to evaluate an already pre-selected group of carcases (e.g. destined for the restaurant sector) in order to pick out extremes of toughness. 2. While better eating quality remains the topic of much discussion, the industry’s adoption of proven programmes such as MLC’s ‘Blueprint for Beef’ has been variable. At its peak, the most important elements of the Blueprint were applied to about 70% of the UK beef kill (MLC estimate). In many cases adoption requires substantial investment 48 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep on the part of the abattoir and when margins are reduced so uptake declines. Today, uptake has declined to less than 50%. As will be shown in the next section, the Meat Standards Australia scheme is very similar indeed to the MLC Blueprint, launched some eight years earlier. 3. It is important to recognise that ultimate eating quality is influenced not only by the inherent quality of the animal delivered to the abattoir, but also by practices in the plant (that can both enhance and damage eating quality), which reinforces the view that eating quality is a post classification issue and should not be mixed in with techniques that are intrinsically trying to measure something different. 4. Producers and slaughterers must share responsibility for optimising eating quality in order to jointly reap the rewards that should be available for delivering what the consumer requires. 5. Any sensor technology that might be introduced is likely to be costly. Central support for investment is thought to be unlikely in the circumstances prevailing today and for the foreseeable future. 6. Data handling and analysis is becoming extremely complex, especially in techniques such as NIR, which generate multivariate data and spectra, often requiring the use of innovative statistical analysis techniques. 7. There are no published studies on the fundamental relationship between NIR spectra and meat quality characteristics. 8. A related point on data capture is that any test which requires samples to be taken, or produces results, after the carcase has entered the chiller will involve a further investment in data capture and identification technology in some plants. Additionally, capital investment for carcase and cut sorting would probably be required. 9. A recurring problem from ‘field scale’ trials is the need to calibrate the NIR equipment to each batch of cattle, day of kill, abattoir or other set of conditions. Thus the use of a universal prediction formula across different abattoirs– as would be desirable for any national or internationally applicable scheme – may not be possible. This reason alone will greatly hinder adoption of this technology; 10. On a positive note, past moves to adopt a more quality-oriented approach through the supply chain have been held back by the separate ownership of production, slaughtering and processing facilities. Operations are now becoming increasingly integrated, in some cases reaching back to farm production level, bringing with it a different management perspective on quality enhancement. 49 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 8. BEEF GRADING SCHEMES IN USA AND AUSTRALIA 8.1 Classification in Other Countries In a review of EU carcase classification it may be useful to consider other related schemes, principally those in USA and Australia. Frequently industry observers visit these countries and from their studies compare EU schemes unfavourably with the USDA Beef Grading scheme or, more frequently, the Meat Standards Australia Beef system. It is sometimes asserted that these schemes are more consumer-oriented in their approach to quality assessment and in particular are able to sort carcases into grades according to their likely eating quality. These schemes were developed in response to different circumstances from Europe - principally in the case of Australia and New Zealand as an export marketing tool but also in the US – as in Europe - to help producers gain some price comparison data in a vast market with highly localised variations. They were seen as an essential tool in an industry of huge national importance and have been, and continue to be, modified in response to market demands, industry pressures and national politics. They are usually referred to as Grading Schemes since the grades used are quality related and reflect this in their price differentials. The US scheme also combines a yield grade (saleable meat in the higher-priced cuts %) together with a ‘quality’ grade (based on an association with eating quality). A further distinction from the EU scheme is that the USDA grade names are relevant to, and are recognised by, consumers at the point of purchase. 8.2 The USDA Beef Grading Scheme This began in the 1920s largely as a result of pressure from beef producers who were in a weak selling position due to a lack of comparative market price information. In addition, the trade – largely in live cattle – developed a terminology suited to local conditions and sellers seeking to market their stock in another area were often confronted with very different descriptive terms or even in some instances similar terms describing different types of animal. It began therefore principally as a price-reporting scheme and from the outset the types or grades of cattle were described in terms of quality reflecting the demands of the consumer. For the first 50 years or so the scheme was entirely devoted to describing carcases on the basis of the expected palatability of the meat. There was general agreement in the industry that the best quality meat would most likely come from a youthful steer or heifer of the traditional beef breeds, which had spent its last few months on a ‘feedlot’ under semi-intensive conditions, and liberal feeding of grain-based rations. This rapidly finished and fattened animal would be expected to give meat with adequate to high levels of marbling - a factor then, as now, deemed crucial by 50 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep many advocates of the scheme in the US for good eating quality. It has to be said however, that increasingly research evidence (Morgan et al 1991, Wheeler et al 1994, Wulf et al 1996) points to the rather weak link between marbling fat and eating quality. Inevitably, the carcase would also have an abundant covering of subcutaneous fat and liberal amounts of other fat – around the kidney, for example. From very early in the development of the USDA schemes, grading was carried out by USDA officials on the cold, quartered (‘ribbed’) side, 24 hours after slaughter. On the exposed 10th rib cut surface the following subjective judgements would be made: • Amount of marbling fat • Colour of lean • Depth of external fat • Rib eye area. Age or stage of maturity was also judged by inspection of the lean colour and the degree of ossification, based on an assessment of the vertebra, chine bones and ribs. The current grade names are as follows: • • • • • • • • U.S. Prime - Highest in quality and intramuscular fat, limited supply. Currently, only four percent of cuts sold are USDA certified Prime. U.S. Choice - High quality, widely available in foodservice industry and retail markets. U.S. Select - Leanest grade commonly sold, acceptable quality but less juicy and tender. U.S. Standard - Lower quality yet economical, lacking marbling. U.S. Commercial - Low quality, lacking tenderness, produced from older animals. U.S. Utility U.S. Cutter U.S. Canner A major development came in the mid-1960s with the introduction of yield grading – the optional additional calculation of yield of fat-trimmed, deboned primal cuts in the high priced back and hind quarter as a percentage of carcase weight. Yield grade was predicted – in theory by use of a formula but in practice often by subjective weighting - from the following characteristics: • • • • Fat thickness over the rib eye; % KKCF (kidney knob and channel fat); Area of rib eye; Carcase weight. Five yield grades are used as follows: 51 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 1 2 3 4 5 over 52.3% 52.3 – 50.0 50.0 – 47.7 47.7 – 45.4 Below 45.4% The grading scheme is voluntary and carcases can be graded at the request of the slaughterer for quality, or yield grade, or both. In practice most of Prime grade meat finds its way in to the luxury end of the market – hotels and restaurants – being considered too fat (and expensive) for most domestic consumption. Yield grading is thus considered somewhat academic for Prime carcases. In the Choice and Select grades, most popular for domestic purchase, yield grading is more common and Choice 2 represents a carcase with ‘adequate’ marbling but without excessive external fat development. Consumer recognition of the grades is almost universal in the US due to liberal use of strip brands on the product and retail labelling of beef with the grade names. As outlined earlier, USDA Beef grading has been a contentious subject in the industry since its beginnings. The different debates, disputes and even lawsuits concerning its development are too numerous to cover here. In summary, however, the scheme’s critics would argue that: • • • • • • Yield grades are not accurate estimators of actual yield of boned prime cuts; Palatability varies almost as much within a quality grade as between the different grades; The scheme has taken on an importance and impetus of its own, outweighing its overall usefulness to the industry. Debate over the techniques and minutiae of application are often conducted in isolation from its effect on beef carcase quality; Emphasis on fatness, especially marbling, and its claimed importance in the maintenance of eating quality have held back the introduction of leaner more efficient beef breeds. More recently, the wisdom – not to say ethics – of producing high levels of fatness has been questioned in the face of scarce resources, environmental (carbon footprint), escalating feed (especially grain) prices and cardio-vascular health concerns. The requirement for cutting the cold carcase to grade it has held back abattoir developments such as hot boning; In the words of one commentator “the servant has become the master”. A quote from 28 years ago is no less relevant today: “ if the purpose of beef grading … is to provide the American consumer with a means of purchasing the quality of beef desired, but if the present grades do not do this with a high degree of accuracy, then the salient question is – why guess what the palatability might be, when we can better assure what it will be?” (Smith, 1980). 52 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep The implication here is that a Blueprint approach would be more effective in raising and assuring eating quality. Furthermore what is clear now is that the interest in the US in NIR and other non-destructive methods for potentially measuring eating quality stems from a concern over the variability in eating quality evident within a given single grade. Supporters, on the other hand, claim that USDA grading – even with its many changes and gradual reduction of the emphasis on marbling – has safeguarded the quality of US beef, so ensuring the survival and occasional expansion of an agricultural sector of prime national importance. Given the overwhelming evidence of hundreds of research findings pointing to the relative ineffectiveness of USDA grading to predict with acceptable accuracy either quality grade or yield grade, it is difficult to identify any feature of the scheme that would be of merit in a European context. 8.3 Meat Standards Australia (MSA) The present Australian Beef grading scheme - Meat Standards Australia (MSA) – is different in concept from both the EU classification scheme and the USDA grading scheme. It shares with the latter scheme however the attempted ‘assurance’ of eating quality and also a similar history of local, state and national political interference. In the 1980s and 1990s Australian beef grading went through several development stages and at times was not dissimilar from the EU scheme. So weight, sex, age, conformation and fatness were combined to sort carcases into grades of estimated lean meat percentage. Some visual assessments of quality were included, for example freedom from bruises, blemishes and pigmented fat, reflecting Australia’s position for many years as the world’s largest exporter of beef. The details are well documented (for example, see Charles, 1964, but it is worth noting here that much effort was spent over many years in developing an objective index of conformation (the weight / length ratio) and also in attempting to introduce probe measurement of subcutaneous fat depths. Both were eventually abandoned after much research and development work produced ambiguous results. The MSA scheme operating since 1999 (now available on a voluntary basis nationwide and operated by Meat & Livestock Australia – MLA) represents a different approach from previous schemes. Individual carcase measurements of conformation and fatness have been discarded in favour of the adoption of a number of pre and post slaughter treatments representing good practice with the aim of raising quality across the range of production. This is very similar - in terms of the good practice adopted - to MLC’s Blueprint approach discussed earlier. It is also a reflection of the very wide variation in cattle 53 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep types in Australia and the climatic zones where they are raised – a range that adds to the problems of ‘predicting’ quality in individual animals. This range in cattle genotypes (with widespread use of some tropical breeds Bos Indicus - in Australia) is more extreme than in Europe, though a wide variation in productions systems is common to both areas. The presence of extreme genotypes in Australia is one of the key reasons given for development of the MSA system. The scheme is also noteworthy in that the treatments imposed to raise quality have been evaluated for different muscles in the side against many thousands of consumer panel tasting sessions. Individual carcase measurements taken on the cold side include: • Carcase weight • Sex • Ossification (indicative of age) –defined as the gradual replacement of cartilage by bone on the vertebral spines and other skeletal articulating surfaces. • Breed type (some tropical breeds, Bos Indicus, are known to produce tougher meat than European breeds). The side is cut at the 10th rib and assessed for: • • • • • Marbling fat Rib fat (3mm minimum is required for protection against too rapid chilling) Meat and fat colour Muscle pH and temperature – pH must be greater than 6.0 for muscle temperatures above 35 deg C, and less than 6.0 for muscle temperatures below 12 deg C Eye muscle area. Hanging method – either from the Achilles tendon or from the pubic (aitch) bone (‘tender stretch’) - is recorded, with aitchbone hanging being favoured (similar to the MLC Blueprint). In addition, ageing period is recorded, with a linear increase in tenderness assumed for an ageing period between 5 and 21 days post mortem. Increases in tenderness beyond 21 days ageing are regarded as less important. Palatability scores are awarded for each muscle according to the measurements recorded above. Maximum scores are given when the values of each measurement are optimal. It is estimated that approximately 20-30% of the Australian beef kill is MSA graded. One supermarket chain is known to use the MSA grading system to underpin its own brand as a means of differentiating product. Other supermarkets have not adopted MSA. It is in the independent sector that MSA has been most enthusiastically adopted. The MSA scheme is essentially a system of classification of meat cuts according to the use to which they are suited and their expected eating 54 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep quality. It does not measure eating quality directly but predicts it from the origin and treatment of the animals, carcases and cuts and simply allocates a score to cuts on the basis of the treatments applied. It should be noted that while MSA attempts to predict eating quality, variation still remains within each quality grade. Indeed Australian research has shown that up to 50% of meat graded is mis-categorised when compared with consumers’ assessments (Thompson, 2002). In summary, the MSA scheme is less about carcase description and more about Quality Assurance and conditions imposed in the abattoir. In its main features of good practice it differs little from MLC’s Blueprint - a development tried, tested and validated some eight years in advance of MSA. There are some specific areas from which the British industry can learn from the experience of the MSA scheme. The scheme includes an assessment of “weight for age” – i.e. an indication of animal growth rate. This is based on the finding that those animals that have grown more rapidly to slaughter weight have better eating quality. It would be possible to use age (from cattle passports) and carcase weight to segregate animals that have had faster or slower growth to slaughter. The MSA scheme also takes greater account of flavour than the Beef Blueprint. This has been addressed by separate review of the literature resulting in guidelines for enhancing beef flavour. This can be used to build on the Blueprint specification. The opportunity exists for a move from quality specifications alone to Quality Assurance. Either the MSA approach or Blueprint could be used as the basis for Quality Assurance for beef eating quality. Measurements such as pH, shear force and chilling rate could be used as tools to monitor meat quality within a supply chain and feedback information to producers. In particular assessment of pH and temperature relationships post slaughter would enable control of carcase electrical stimulation and chill rates to optimise tenderness. 55 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 9. THE LEGISLATIVE DIMENSION 9.1 The Legislative Relevance of the Carcase Classification Schemes in the Past and Today. 9.1.1 Historical development The beef carcase classification scheme was "formalised" in 1980/81 as a result of the need to have a Community-wide common system on which to base the system of price reporting. This need was created by the introduction of the Guide Price and the Intervention Price, these being "indicators" against which the opening of private storage aids and intervention buying-in could be considered. In those days the two prices could be changed as part of the annual Price Fixing negotiations in the Agriculture Council. As part of the 1999 reform of the CAP beef regime the two terms were deleted and a Reference Price, set at 2224 euros/tonne, was introduced "for carcases of male bovine animals of grade R3 as laid down in the Community scale for the classification of carcases". When the average Community market price is and is likely to remain at less than 103% of the Reference Price (i.e. less than 2290.72 euros/tonne) the Commission may decide to grant aid for private storage. The 1999 reform also provided for intervention buying-in to be opened if, for a period of two consecutive weeks, the average market price in a Member State (or region of a Member State in the case of the UK) recorded on the basis of the Community scale falls short of 1560 euros/tonne for an R3 male carcase. In the past the EU Commission made widespread use of intervention buyingin, the last occasion being in 2001/02 at the time of the BSE crisis on the Continent. In the light of its experience of intervention buying-in over a period of approximately 15 years, it is thought that the EU Commission is most unlikely to implement intervention buying-in in the future but to turn instead to the less expensive and more efficient in terms of market disposal, system of purchase for destruction schemes. Private storage aid was used significantly but with hindsight unsuccessfully in 1987/88. Apart from small-scale use for veal more than 10 years ago it has played no part in the EU Commission’s market management "armoury". Provision for intervention buying-in and private storage aid still exists in the current market management/support rules. While, as stated above, the EU Commission is unlikely ever to use these provisions in the future, it is believed that their removal from the beef regime would be strongly opposed by some Member States (e.g. France, the ROI, Italy and Belgium) and is therefore unlikely to occur in the short to medium term. 56 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 9.1.2 The EU Commission’s view of the Beef Carcase Classification Schemes in 2008 The EU Commission (based on interviews with EU officials) sees a continuing benefit in the continuance of the mandatory scheme for beef carcase classification beyond its role in support measures. This benefit is seen in three main areas: 1. Market monitoring – the classification system is the basis for price reporting and provides the best information on what is happening in the market. The fact that the actual price reports have an inherent lag of 1 to 2 weeks behind the spot market is not seen as a problem. 2. Market management - the classification based price reports are still seen as a safety net trigger for the market support measures that are still in place but which from the current viewpoint will probably only ever be used sparingly, for e.g.: Safety net intervention Private storage aid Exceptional market support measures The Commission feels that the uncertain and unstable food situation that is possible in international markets for the foreseeable future means that it is important to have these market management safeguards. 3. Trading usage/transparency – the evidence is that the sector utilises the EU harmonised classification and related price reporting system as an important aid in undertaking day to day business in the commercial markets. EU Commission staff reported that the Commission sees no reason for any major changes to the current system (echoing the sentiment found during the interviews with abattoirs and producers -‘If it isn’t broke why fix it’), and the single CMO which entered into force from 1 January 2008 (Council Regulation 1234/2007), only introduced minor changes to simplify the working of the system. As regards any new attributes the EU Commission believes that these could be introduced if and when there is a EU wide need for them and when such measures are shown to work. Further, the draft Commission regulation laying down detailed rules on the implementation of the community scales for the classification of beef, pig and sheep carcases and the exporting of prices thereof (agreed at the 49th CMO Management Committee for Animal Products (Beef, Sheep, Pigs, Poultry and Eggs) held on 23 October 2008) brings together existing legislation rather than introducing any major changes. Similarly they do not see any reason to review the legislation to take account of any new systems of classification until these are more effective and are being used more widely. 57 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep In brief the situation in countries that have experimented/installed such systems is: Germany – seem to have lost interest in the VIA machines (and in the criticism of the present system that surfaced 2/3 years ago in a letter to the Commission but now seems to have been forgotten). Ireland – have introduced VIA machines and seem happy with their operation (these were paid for by the Irish Government, but the whole possible issue that this could be thought of as a ‘state aid’ to their industry seems to have been ‘brushed under the carpet’ as it means that the Irish can now better meet their EU obligations. Under the system operating in Ireland the arrangements to appease the farmers meant that the reporting even allows farmers to look at individually company prices (on the their web site). France – their VIA machines still have difficulty with measuring fat and the progress of the implementation in France has slowed down. Denmark – have quietly gone about introducing VIA machines, but as they have a small beef industry this is not seen as significant by the EU Commission. The experience gained from the trials and operation would suggest that if a VIA system was adopted in any country; it is best to use only one make of machine. 9.1.3 The EU Commission’s view of the Sheep Carcase Classification Schemes in 2008 Despite the fact that the EU sheep sector may benefit from a mandatory carcase classification and related price reporting system in the same way as described above for beef, the EU Commission thought it would be very difficult to make the sheep system compulsory because of the limited nature of sheep production in some member states. Under the terms of the Sheep regime any member state could enhance the system in its own country at its own expense (provided this was not seen as benefiting one member state to the expense of others). 9.1.4 The EU Commission’s view of the Cost of the Carcase Classification Schemes in 2008 The EU Commission saw the operation of the classification and related price reporting system as minimal in EU terms. Much of the cost was routine and borne by individual member states. For price reporting all data is now received electronically and after a small amount of labour involved with expert checking, is routinely processed to 58 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep produce comparative EU prices. This is carried out for what is seen as a small comparative cost. The only other cost for the EU Commission are the control visits that are conducted 5 times a year when 9 experts (from the Commission and member states) will visit one to two member states each visit (see Section 9.2 below). In addition a Working Group is held once a year to review the operation of the system. 9.2 The Beef Carcase Classification Scheme and How it is Implemented. Beef carcase classification schemes became mandatory in 1992, following the introduction of regulation (EEC) no 1208/81 (that determined the Community scale for the classification of adult bovine carcases), and EEC (No 344/91) that set out detailed rules. The basic information recorded in this scheme is: • • • • Cold carcase weight (hot weight of carcase less the appropriate rebate) Conformation class (SEUROP) Fat class 1 to 5 Sex/category (young bull less than 2yrs, bull, steer, heifer, cow Additional division of conformation and fat classes- up 15 sub classes for each, and an indication of age are optional to the scheme participants Today under Community legislation (Council Regulation (EC) No. 1234/2007 Article 43) all carcases of adult bovine animals should be classified. However, under Commission Regulation (EC) No. (currently under negotiation), Member States may decide that this requirement shall not be compulsory: a) For approved establishments which slaughter not more than 75 adult bovine animals per week as an annual average And, b) For retailers who purchase live animals and have them slaughtered under contract on their account. Details for the implementation of Community rules for the classification of beef carcases are currently set out in various Commission Regulations. These are to be brought together under a single Regulation agreed at the 49th CMO Management Committee for Animal Products (Beef, Sheep, Pigs, Poultry and Eggs) held on 23 October 2008, which will apply from 1 January 2009 (according to Council Regulation 1234/2007). This regulation sets out the specification for classifying carcases according to their conformation and degree of cover fat. It also defines a reference dressing specification and provides a list of coefficients for variations in the dressing specification in different Member States so as to take account of weight differences for the purposes of comparing reported average market prices. 59 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Classification has to be carried out by qualified technicians who have obtained a licence granted by the Member State. Classifiers may be abattoir employees or members of an approved agency (e.g. in GB MLCS Ltd and in Northern Ireland LMC). Checks on the performance of classifiers must be carried out on the spot and without prior warning at least twice every three months in all approved establishments, which practice classification and must normally relate to at least 40 carcases. The checks must be carried by an independent body of licensed classifiers (e.g. in England and Wales the RPA Inspectorate – see Section 9.4). The standards are subject to on the spot checks by a Community inspection committee ((EEC) No 2137/92. In recent years Commission rules have been amended to provide for the licensing of automated carcase grading techniques for which a similar regime of frequent performance checks is provided. To date, automated grading techniques have been introduced in Denmark, France and the ROI. Installation of licensed classification machines does not obviate the need for the presence of a licensed classifier for example, to monitor the performance of the machine and to take action in the event of any technical breakdown. Experience of classifying machines to date suggests that the machine used in the ROI and Denmark classifies conformation well and fat levels less well. In France however, other problems remain concerning the classification of the fat level e.g. in cases where extensive areas of fat have been removed from the carcases (‘emoussage’) prior to classification. Average weekly deadweight cattle prices are required to be reported from member states, as set out in regulation (EEC) No 563/82 and No 295/96. As interpreted by the UK these are required from all abattoirs in GB that slaughter more than 20,000 head of cattle annually. Prices must represent at least 25% of slaughtering in the main production regions and 30% nationally. In GB the collection, analysis and reporting of prices is carried out by AHDB Meat Services Economics. Primarily the deadweight cattle price is collected to provide an average GB deadweight cattle price to the European Commission as set out in Regulation 295/96. However, the new EC dressed average price is also used by industry to monitor movements in the market and track trends. No details are readily available of the costs of classification in each member state, whether for abattoirs or Member States competent authorities but Appendix 2, shows the scale of magnitude of the classification task. 60 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 9.3 Sheep Carcase Classification Although regulation (EEC) No 2137/92 also introduced a Community classification scheme for sheep, this regulation has not been enforced and classification of carcases remains voluntary. The CAP Sheepmeat regime is regarded as a "light regime". The EU is not self-sufficient in sheepmeat and therefore market support measures are limited to the provision of the possibility of Private Storage Aid (PSA). There is no provision for intervention buying-in, export refunds or protective import tariffs. The regime does not provide therefore any reference price with regard to the granting of PSA. Instead Council Regulation (EC) No. 1234/2007 states only that the Commission may decide to grant aid for private storage "when there is a particularly difficult market situation for sheepmeat and goatmeat in one or more of the following (price) quotation areas: a) Great Britain b) Northern Ireland c) Any Member State other than the UK, taken separately." For this reason and probably acknowledging the widely varied production and consumption structures in the EU sheepmeat sector, use of carcase classification in the sheepmeat sector is implemented on a voluntary basis. Presumably therefore where classification is practiced it is principally to meet the requirements of abattoirs customers. Community rules concerning classification of sheep carcases broadly follow those in the beef regime in that they require classification to be carried out by sufficiently qualified technicians; there are on the spot checks by a body independent of the participating abattoir and, where appropriate, the committee of Commission and Member States experts may inspect and report on the standard of sheep carcase classification in Member States. In order to provide for the differing aspects of the sector across the Community the rules contain two different classification scales. One, for light lambs of less than 13 kilograms, is split by weight bands into three different categories A, B and C, which are based on meat colour and fat cover. The other scale for heavier sheep carcases is divided into one category (A) for sheep under 12 months old and (B) for "others" and is based, like the scale for beef carcases, on assessment of conformation and degree of fat cover. However, Member States whose sheepmeat production exceeds 200 tonnes per year are required to record and report prices on a weekly basis. In theory prices reported can be based on information from both live markets and abattoirs using, where necessary, a system of co-efficients to reflect the proportion of classified carcases included in the average price reported. Member States are also required, on an annual basis, to supply the Commission with a list of abattoirs participating, for the establishment of prices, in carcase classification according to the appropriate EU scale, together with an indication of the approximate annual throughput of those participating abattoirs. 61 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep In GB deadweight sheep price is collected to provide an average GB deadweight heavy lamb price to the European Commission as set out in Regulation (EC) No 315/02. However, the average deadweight Standard Quality Quotation (SQQ) price, is also used by industry to monitor movements in the market and track trends. It is a voluntary agreement for abattoirs to supply their deadweight sheep information. There is little, if any, statistical information on sheep carcase classification in the EU. Moreover, because classification is carried out on a voluntary basis, in practice the committee of Commission and Member States experts do not carry out any inspections. The insignificance of sheepmeat production in some Member States means that currently only 20 of the EU-27 Member States report prices. It appears that only five of them, Denmark, France, Finland, Sweden and the UK (Northern Ireland only), make use (in all cases partially) of prices recorded on the basis of the EU scales for sheep carcase classification. In 2002 the EU Commission carried out a survey to evaluate whether use of the EU scales for sheep carcase classification should be made compulsory (EU Commission 2002). They decided, because of the very limited use made of the EU scales that such classification should continue on a voluntary basis. 9.4 Role of RPA in England and Wales and its Equivalent in Other UK Regions. A small inspectorate team of the RPA (staff numbers in England and Wales – 6), and the equivalent bodies in Scotland (staff- 2) and Northern Ireland (staff– 4), plus a small number of administrative staff in each region, have as part of their duties responsibility for checking the operation of the beef classification scheme. This involves them in England and Wales as an example, in undertaking a minimum of two unannounced control visits per quarter to all plants that have to classify under the EU scheme (i.e. those plants killing more than 75 cattle per week), or more to plants seen as posing a risk. This involves checking the operation of the whole classification process (i.e. dressing, weighing, assessment, documentation and where applicable price reporting). In order to help maintain standards with the carcase assessment they undertake a ‘standardisation’ exercise twice a year involving RPA staff from the UK and MLCS Ltd Senior Managers (the only known provider of an independent service). The RPA also licences all those undertaking beef classification whether abattoir staff or MLCS Ltd (this takes the form of a standard assessment test 62 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep over 40 carcases). In principle abattoir staff that move plants have to be relicensed. The RPA also act as audit agents for the system of price reporting checking that the price reporting is done to the standards required at the plants and liaising with Defra about when plants reach the required target level. 63 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10. INDUSTRY VIEWS ON CLASSIFICATION IN 2008 10.1 Methodology 10.1.1 The representative sample In order to understand the attitudes of the industry towards classification, structured interviews were conducted with a representative sample of: a) Key UK producer organisations b) Producer marketing groups and groupings of producers c) Industry and government bodies in the UK and EU d) UK abattoirs (reflecting their views and those of their customers) e) UK abattoir organisations In total useable information was received from all of the 45 companies and organisations contacted as part of the project. This included 20 interviews with the representatives abattoir companies, and 25 with the representatives of producers, producer marketing groups, industry and government bodies and abattoir organisations in the UK. See Appendix1, for a listing of those companies and organisations contacted. Meetings were also held with representatives of the EU Commission, Animal Products Unit (responsible for classification and price reporting), and the views were solicited of industry organisations in other EU countries (but only two replies were received from organisations in Spain and Germany). It was explained to all that the classification system which was being reviewed was defined as that involving the identification of the animal, the dressing specification, the weighing, the assessment on conformation and fatness (under the SEUROP grid), the documentation of the attributes and related price reporting issues. 10.1.2 Profile of the abattoirs contacted The 20 abattoir companies interviewed were chosen to represent the views of both large and medium sized companies (that between them operated 30 plants). Some of the companies killed cattle, some sheep and some both (sometimes at different plants). In 2007 GB slaughtering statistics (source: AHDB Meat Services) show that total slaughtering of cattle were just over 2.2 million and sheep almost 15 million. Of these it was estimated (source: AHDB Meat Services) that in 2007 79% of cattle and 54% of sheep were sourced on a deadweight basis. The GB abattoirs contacted accounted for 42% of total GB cattle slaughter and 23% of total GB sheep slaughter in 2007. From the information provided 64 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep by these companies of their estimates of what when interviewed they were purchasing deadweight, applied to 2007 throughput figures, deadweight purchases represented 87% of cattle and 81% of sheep. The two companies interviewed in Northern Ireland purchased almost of their livestock on a deadweight basis. The difference in the proportion of GB deadweight purchase between the national estimates and those provided by the plants interviewed was because a larger proportion of those larger companies supplying supermarkets were interviewed than others. The representative sample however took views from across the spectrum of abattoir company types (e.g. from medium sized abattoirs supplying butchers to specialist ethnic and sheep export plants, those buying the majority on a deadweight basis to one buying only 5% of cattle on a deadweight basis) and these views were assessed and taken into account as to representing their sector (and not weighted by throughputs). 65 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.2 Views of Abattoirs on Beef Carcase Classification 10.2.1 Is the overall system of classification for cattle important to the operation of the business? All bar one smaller plant (of the 19 abattoir companies and 2 representative bodies that commented on cattle) thought it was an important (some thought essential) tool for the buying of cattle on a deadweight basis, establishing a price for the transaction between abattoir and producer. The majority of the abattoirs interviewed paid producers based on complete classification results; those that did not were 2 smaller abattoirs and a major OTM plant that mainly paid on the basis of weight. The majority were today recording information through electronic means and all but two of those interviewed, said that they passed back full details to producers on a combination of remittance advice and kill sheets There was less agreement that it was as useful as a tool for selling carcases/meat. Some abattoirs were obliged to use it for sales to some supermarkets and increasingly if involved in the export trade. Overseas customers were more likely to specify their needs in classification terms and it was useful in establishing a relationship with new domestic customers. In Scotland classification attributes are part of the QMS quality beef standard for the Scotch Beef brand. 10.2.2 Who classifies? All of the abattoir companies contacted were classifying cattle (under EU regulations all those slaughtering 75 or more a week have to). Of the 19 companies in GB killing cattle, 8 used there own staff to do this and the remainder used an outside independent assessor. This was MLCS Ltd (previously the MLC), except for the 2 in Northern Ireland that used LMC. 10.2.3 Should cattle classification be carried out by an outside independent company or by the abattoirs own staff? Those using an independent classifier used them because it: • Overcame the difficulties that could arise with the farmer supplier if the plant was using its own staff • Sent a good message to the farmers • Enabled them to supply a regular service without worrying about staff shortages Some abattoirs were of the view that for fairness and transparency the service should be provided independently in all plants. 66 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Those not using them compromised mostly medium sized plants that were put off by the cost of the independent service (although in practice this coat is passed back by many abattoirs to the producer within the deductions to the bid price). It was also believed by some that as the cattle system was overseen by the RPA (see Section 9.4) it did not matter who classified as long as it was consistent, although there were mixed views about the operation of the RPA and its equivalent in other regions. Of the plants interviewed, 9 of them and their representative bodies had no problems with the RPA role and 2 made no comment. The remainder had a general gripe about bureaucracy, red tape and interference and would like to see fewer inspection visits based on risk. One bone of contention was the need for the RPA to re-license abattoir classification staff that moved between plants and the onerous nature of this process. 10.2.4 Do variations in dressing specification cause problems? For cattle, although the RPA believe that the recent agreement and the adoption of three dressing standards have improved matters, others are not so sure. Some abattoirs still see this as the greatest concern for many preventing the working of a consistent and transparent system. The challenge is that if consistency and transparency is what is wanted why not standardise and use only one, as happens in Northern Ireland? An opposite view expressed by one cattle abattoir maintained that dressing to specific standards disadvantages the business as different customers ask them to supply different trim levels. A further issue of which some farmers are less aware is that further dressing can also be carried out by the MHS staff when hygiene trimming (e.g. with gut spills). This is a problem as there are differences both within and between plants as when such trimming is necessary, and this impacts on weight and thus returns without producers being properly informed. This tends to be a problem with high throughput and is more of an issue with sheep. 10.2.5 Are there any issues in with regard to weighing? The recording of weight is a crucial part of the deadweight classification process, but the whole issue of when to weigh (linked to the dressing specification), the rounding of weights by some abattoirs (to the nearest 0.5 kg) and the hot/cold rebate system causes a degree of disquiet to many abattoirs. Seen today as crude, the method was set up many years ago when the systems available were less sophisticated (i.e. when such as digital electronic probes and calibrated devices were not available). 67 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep To many this is another area that would benefit from standardisation; why not weigh at a standard temperature (e.g. use a temperature probe at a specific time to establish), although many others do not see an issue. One cattle abattoir doing OTM cattle, maintained that using the 2% rebate disadvantages the business because the drip loss on cows is far greater than 2%, meaning that they lose money. 10.2.6 Is the current applied/carried out well? method of carcase assessment being None of the abattoirs we spoke to has a major concern with how the current method of assessment using the SEUROP grid was being applied/ carried out (as opposed to if it should be improved). Plants had varying views on which was more important fatness or conformation and whether a 15x15 grid was a better predictor of carcase yield, but on the whole they found that the ‘classification’ language was widely understood by many producers and abattoirs. Issues of consistency in its application still crop up, which is not surprising given that it is a ‘visual’ assessment but the mandatory nature of the beef classification. We still found a view from a number of abattoirs that cattle from the North are on average different from those in the South (Trent/Mersey divide) and they are not classified consistently (i.e. cattle from the South West are upgraded and those from the North downgraded). By and large the overarching checking role of RPA (together with the independent service provided by MLCS Ltd and LMC) has prevented the issues regarding consistency from becoming a major issue, even where plants use their own staff to classify. 10.2.7 Could the system be improved? The general view from the abattoirs and their representative bodies interviewed was that as the current system is well understood and works well, there is no point in tinkering with it, unless it is replaced by a leap forward, such as may be provided by new technology, but to do that we must be clear of what it is we want to measure (i.e. Should we describe the carcase in the same way or introduce new factors/attributes to measure?). Many regarded the introduction of such as VIA technology in an ambivalent way. From their knowledge of various trials and its operational use in the Irish Republic, most did not feel that at the moment it could offer a marked improvement on the current assessment system, other than adding what was perceived as a greater degree of objectiveness/consistency on conformation assessment if the equipment could be calibrated correctly. 68 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Many were aware that VIA was not a good predictor of the level of fat. Most however, were interested if it could reduce cost and improve the perception of consistency, and supported it being investigated further, although it was seen as a tool for the larger plants and not the medium and smaller abattoirs. Some form of quality assessment would, it was believed improve the system, but there would have to be an agreement throughout the industry as to what constitutes quality (e.g. better eating –flavour, tenderness); one step forward could be to introduce an ‘internal assessment’ (as discussed in the early days of classification), such as one that assesses the shape and size of the eye muscle and degree of marbling. Where eating quality is concerned many abattoirs are willing to consider this only if the right measure of eating quality can be agreed upon, which they know will be very difficult. Abattoirs often take a cynical view when this is put forward by producers as being yet another attempt by them to get additional returns, particularly as abattoirs regard what they do pre and post slaughter as having the biggest impact on eating quality (e.g. reduced stress handling prior to slaughter, correct dressing procedures, carcase treatment, chilling and maturation regimes – see: MLC Blueprints for Consistent Quality Beef and Lamb) 10.2.8 Should the cattle classification system remain mandatory? The views of the abattoirs about this followed closely their views on the RPA and their cultural attitude to government interference in what many see as commercial issues. Of the abattoirs interviewed, 7 of them and their representative bodies thought it should remain mandatory, 6 made no comment and 6 thought the government should stay out of these affairs. 10.2. 9 Are the average deadweight cattle prices reported useful? The majority opinion was that the prices were useful guides that aided market transparency, although the strength of this view varied by company (with some that had to provide them seeing them as a chore). Some who were tied up in contracts with large supermarkets saw them as essential for dealing with clients and managing this business (detailed deadweight price information were sent by AHDB MS Economics in 2008 on request, to 15 of the large companies that supplied supermarkets each week, and to one of the supermarkets). Some see such deadweight price reports as becoming more important in the future (as in the pig sector), if abattoirs and producers have to tie themselves closer in production contracts (e.g. many see beef from the dairy herd as becoming more important as the overall cattle population falls). 69 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep There was a concern from some that the price reports are overly influenced by reports from the larger abattoirs, and that the regional information particularly (which is based on only a part of the national sample) does not fully reflect the actual trading conditions and misleads producers. The input from only the larger abattoirs in their opinion leads to inaccurate price reporting because of the difference in the type of cattle that these plants process (i.e. largely for the supermarket trade). Other slaughterers take different types of cattle, which are reflected in the prices paid but not in those reported. This leads to regional reports in particular sending at times wrong messages to producers as to local prices. The system could be improved by allowing for the inclusion of information from medium and small abattoirs, which price cattle on the EUROP classification grid. This may increase the sample size and ensure that all sectors of the industry are represented in the sample. Some abattoirs exporting beef maintained that price reports were detrimentally affecting their trade across the EU, as they are used by customers to push the prices down! [See also 10.6 general comment on prices] 70 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.3 Views of Abattoirs on Sheep Carcase Classification 10.3.1 Is the overall system of sheep classification important to the operation of the business? Similar to abattoirs killing cattle, the 11 abattoir companies who were buying a large number of sheep on a deadweight basis and their two representative bodies thought it was important (some thought it was essential) to the running of their business. The remaining 5 who were all smaller plants buying mostly on a liveweight basis (bar one) thought it was not and did not classify The abattoirs interviewed buying on a deadweight basis all classified and also paid producers based on complete classification results. They also recorded information through electronic means and maintained that they passed back full details to producers on a combination of remittance advice and kill sheets (although with some full details were only given on request) As with cattle there was less agreement from those involved with classification that it was as useful as a tool for selling carcases/meat. Some abattoirs were obliged to use it for sales to some supermarkets and increasingly if involved in the export trade. Overseas customers were more likely to specify their needs in classification terms and it was useful in establishing a relationship with new domestic customers. In Scotland classification attributes are part of the QMS quality lamb standard for the Scotch Lamb brand. 10.3.2 Who classifies? Of the 10 companies in GB classifying sheep, 3 used their own staff to do this and the remainder used an outside independent assessor. This was MLCS Ltd (previously the MLC), except for the 1 in Northern Ireland that used LMC. 10.3.3 Should classification be carried out by an outside independent company or by the abattoirs’ own staff? The main reasons why abattoirs used an independent assessor for sheep is the same as for cattle. The main difference to the system that operates for cattle is that as the sheep system is not mandatory under EU regulations, the RPA have no role in overseeing the sheep classification system and there is a lack of standardisation of methods of operation. The independent assessors offer some consistency in the abattoirs they operate in, but in GB on a national basis their coverage is less than for cattle. As a result nationally the sheep classification system is seen as being less consistent and causes more concern about not delivering the market 71 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep transparency it should. Many abattoir companies see this as causing major competitive disadvantages as it is more difficult for producers to understand the bid prices from different plants. The standardisation issue starts with dressing specifications. 10.3.4 Do variations in dressing specification cause problems? For sheep, the current situation with a lack of standardisation of dressing specifications is seen by many abattoirs and their representative bodies to be a mess that does nothing to help the industry develop (even 3 of the abattoirs interviewed who buy most liveweight and do not classify saw this as a major cause of concern. The challenge is as with cattle, that if consistency and transparency is what is wanted why not standardise and use only one specification (or as one abattoir said all in or all out!). The issue of hygiene trimming (e.g. with gut spills) discussed under cattle, also tends to be a bigger problem with high throughput sheep abattoirs. As with cattle this is a problem as there are differences both within and between plants as when such trimming is necessary, and this impacts on weight and thus returns without producers being properly informed. 10.3.5 Are there any issues with regard to weighing? As with cattle the recording of weight is a crucial part of the deadweight classification process, but because of the problems of the wide variations in dressing specification and its influence on recorded weight, they are less concerned about the issue. Some who are weighing to 0.1 kg feel disadvantaged over those that do not but see it as important to maintain customer relations. 10.3.6 Is the current applied/carried out well? method of carcase assessment being None of the abattoirs interviewed had a major issue with how the current method of assessment using the SEUROP grid was being applied/ carried out, where it was being used (as opposed to if it should be improved), other than the major concern about whether it was being applied consistently, given the situation in the sheep industry. For most abattoirs killing sheep the issue of fatness was more important to them and their customers than conformation. 72 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.3.7 Could the system be improved? The lack of standardisation is seen as a problem by many abattoirs of all sizes due to the lack of transparency, which makes it difficult for plants to demonstrate that their terms of trade are as good as/ better than others. For many abattoirs anything to improve this situation would be welcome, although it has to be said that some abattoirs prefer to work in a trading system that has as much fog in it as possible. It is difficult to see how the current sheep system could get murkier. 10.3.8 Should the sheep system be made mandatory as with cattle? Only 4 abattoirs of those interviewed saw that the way to solve the problem of the lack of standardisation was through government intervention to impose standards, although the representative bodies were not averse to the imposition of some ‘light’ level of imposition if this would improve matters (one possibility worth considering is the voluntary system for sheep that operates in Northern Ireland). 10.3.9 Are the average deadweight sheep prices reported useful? None of those we interviewed regarded the reports favourably, as they are based on a system that is not standardised. At best the some of the abattoirs interviewed saw them as a guide. However, similar to cattle, detailed deadweight sheep price reports were sent by AHDB MS Economics in 2008 (on request), to almost the same number of the large companies that supplied supermarkets each week, and to one of the supermarkets (even large companies that would not provide deadweight sheep price information took the price reports). [See also 10.6 general comment on prices] 73 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.4 Views of Producers on Beef Carcase Classification 10.4.1 Overall is the cattle classification system important for producers? The situation is the same today as when the current carcase classification system was set up, in that the cattle population throughout the UK is made up of a large variety of breeds, with large variations in the key carcase attributes both within and between breeds (exacerbated by the different systems of production in different geographical areas), which means that an accepted common mean of carcase description and trading standards is essential for transparent trade. The feedback from the system is also seen as an important tool to aid the improvement of the herd, although it was recognised that this was more of an immediate tool for those that had completely integrated (breeder/feeder) systems, than for those buying/feeding stores. Although as demonstrated by such as the EBLEX Better Returns Programme there were ways in which all could benefit from the results The linkages between such as classification results and breed indexes need to be improved. 10.4.2 Should classification be carried out by an outside independent company? All of the key UK producer organisations, producer marketing groups and groupings of producers we interviewed (hereafter referred to as the representatives of producers), maintained that there was still in the minds of many producers a basic distrust with abattoirs (even though they are the essential trading partners of finished cattle producers). As a result all of those we interviewed (but for one small producer group) believed that classification should be carried out by an independent provider (such as MLCS Ltd and LMC), but believe that this is less of an issue for cattle because of the ‘independent verification activity’ carried out by the RPA. The small producer group was selling everything to one abattoir on a regular basis, and maintained that they were well aware of its terms of trading. There was a belief that many plants that use their own staff have over the years used trained MLC staff (that have been released for various reasons). There is a concern that this work force is ageing and that it will be more difficult for abattoirs to pick up trained staff in the future 74 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.4.3 Do variations in dressing specification cause problems? Despite the recent agreement and the adoption of three dressing standards this was still a concern to most of the representatives of producers interviewed. This was because even a reduced number of three dressing standards, still inhibit the working of a consistent and transparent system (the producer groups we spoke to maintained that it was also still common in plants for additional trimming to take place on the brisket and neck). The challenge is that if consistency and transparency is what is wanted why not standardise and use only one dressing standard, as happens in Northern Ireland? 10.4.4 Are there any issues with regard to weighing? The views of the representatives of producers reflect those of some abattoirs recorded in the previous section, that the recording of weight is a crucial part of the deadweight classification process, but the whole issue the rounding of weights by some abattoirs (to the nearest 0.5 kg) and the hot/cold rebate system causes the same degree of disquiet. It is seen today as crude. The method was set up many years ago when the systems available were less sophisticated (i.e. when such as digital electronic probes and calibrated devices were not available), and appears to many producers to reflect the widespread existence of ‘sharp practice’ in many parts of the industry. 10.4.5 Is the current applied/carried out well? method of carcase assessment being As with the abattoirs, the main issues that the representatives of producers we interviewed raised concerning how the current method of assessment using the SEUROP grid was being applied/ carried out (as opposed to if it should be improved), was the concern that it should be consistent. The overarching checking role of RPA (together with the independent service provided by MLCS Ltd and LMC) was seen as preventing the issues regarding consistency from becoming a major issue, even were plants used their own staff to classify. Some maintained that there will always be a feeling that while the system is based on a ‘visual assessment’ it will not be as objective as a machine, hence the interest in new technology such as VIA. 10.4.6 Is the feed back of information from abattoirs adequate? Producers need feedback on the carcase quality. They need to know what is wanted and when they are meeting this to allow them to plan their businesses and breeding programmes to improve the product. 75 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep While most abattoirs maintain there is no problem and that they pass back the classification details to producers with the payment details, many producers still see this as a major issue. 10.4.7 Could the system be improved? There is a widespread view that overall the cattle classification system as it is applied generally works well. It is widely understood by many producers but a periodic updating of knowledge for some, through such as the Better Returns Programme, is seen as very worthwhile. Having said this some representatives of producers think that the SEUROP grid may be in need of review, to reflect changing industry needs. Some believe that it would be better (easier to understand) to have less divisions, although others allow that abattoirs want to make use of the 15 point grid, which it is maintained is a better predictor of meat yield (and livestock producers are happy with this as long as they do not get penalised). The measure of the relationship between classification and meat yield is dated and in the light of changing industry practices could be reviewed. For example, the assessment system measures overall meat yield related to fatness and conformation, with the operatives trained to assess three key parts of the carcase (i.e. shoulder, loin, hind) and the classification (fatness/conformation assessment) as an average; however, since the system was set up the demand for different cuts has changed, as the sources from which consumers purchase meat and their tastes/preferences, have changed (e.g. the growth of the supermarkets). This is not a problem for many, but some question whether the classification system should be changed/improved to reflect this different market (e.g. some abattoirs want what is regarded as good conformation on loin and leg but not on the shoulder). Any system needs to reflect the carcase attributes consistently and rightly or wrongly the current assessment system based on a visual appraisal is seen by some as biased if not ‘archaic’ and open to influence, leading to accusations that it is not standard across plants (or across the EU). The development/introduction of VIA technology is seen by some as a means of addressing these issues, although there is a concern that because trials have shown that this system has problems in assessing fatness, it may not be as good a predictor of meat yield as some hoped (Note: as referred to earlier, the evidence is that the 15x15 point SEURUP scale is a better predictor of yield and the VIA machines in the Irish republic are set up on this basis. This interest in meat yield however, does not mean that this should herald a move to payment only being made on meat yield, many producers are concerned that any ‘new ‘ system must not ignore eating quality. There is a perception that the differential in price between the grid’s boxes with the current system is not, and never has been sufficient and it is hoped by producers that a new system would address this. 76 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Similarly it is hoped that if a way of measuring eating quality could be agreed, this could result in an additional payment to producers. The system of pricing is seen as unfair by some as they believe that from cattle of the same age, breed, category eating quality will be the same whether it is an E or an R, but there are currently price penalties. Despite the 2008 agreements to reduce the number of dressing specifications, which has gone a long way to placate many (and open the door for a standardised system that would more easily allow for VIA measurement), the system is still not standardised and not as transparent as it could be. It is still perceived by farmers as being able to be manipulated by the large abattoirs to suit their ends. 10.4.8 Should the system remain mandatory? All of the representatives of producers interviewed said that it should, with the limit remaining at 75 cattle per week and the RPA continuing in their overarching supervisory/checking role. 10.4.9 Are the deadweight cattle price reports useful for producers? The opinion of all the representatives of producers interviewed was that the reports provided a useful background against which the industry operated, although improvements could be made. In addition to the improvements suggested in the Abattoir Section 10.3, the price reporting system could also allow for the collection of more detailed information from abattoirs including organic status and passport information such as date of birth and sire breed. Organic or breed specific contracts can influence the average price. In practice in some cases the commercial value of a R4L steer may bear no resemblance to the deadweight average price quoted. If figures can be broken down to reflect the segmentation in the market this would be more meaningful for producers. [See also 10.6 general comment on prices] 77 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.5 Views of Producers on Sheep Carcase Classification 10.5.1 Overall is the sheep classification system important to producers? As with cattle, the situation is the same today as when the current carcase classification system was set up, in that the sheep population throughout the UK is made up of a large variety of breeds, with large variations in the key carcase attributes both within and between breeds (exacerbated by the different systems of production in different geographical areas), which means that an accepted common means of carcase description and trading standards are essential for transparent trade. Unfortunately for the sheep industry the lack of standardisation (as set out in the abattoir section), exacerbated by the fact that the sheep classification system is not mandatory and does not have an RPA to oversee it, make transparent trade much more difficult. The feed back of classification results should be, as with cattle, an important tool for the producer to use to improve the flock, but given the lack of standardisation in the sheep carcase classification system, it is not seen as being anything like as useful as it should be. 10.5.2 Should sheep classification be carried out by an independent company? All of the key UK representatives of producers, maintained that the basic distrust with abattoirs that was outlined in the cattle sector is exacerbated in the sheep sector because of the lack of standardisation As a result all of those we interviewed believed that classification should be carried out by an independent provider (such as MLCS Ltd and LMC), particularly if there was not an organisation like the RPA to oversee it. But even with independent classification the transparency could still be inhibited unless there was greater standardisation 10.5.3 Do variations in dressing specification cause problems? The issue of the wide variations that exist in the dressing specifications was seen by all the representatives of producers interviewed as the main problem in the sheep classification system. 78 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.5.4 Are there any issues with regard to weighing? For the same reasons as with abattoirs above, many producers would like to see the system of hot/cold rebates abolished and the rounding down of weights (to the nearest 0.5kg), With the digital technology available today it should be possible to improve on this crude system. 10.5.5 Is the current method of sheep carcase assessment being applied/carried out well? Given the lack of standardisation in the above two areas, most producers are cynical about the consistency with which the assessment of fat and conformation is carried out. Most are more reassured if independent providers carry it out but against the overall background of uncertainty, for many producers the classification system for sheep is very suspect. This is a major reason why nationally so many producers still prefer to sell sheep on a liveweight basis. The experience of the EBLEX Sheep Better Returns Programme has shown that fewer producers are as familiar or as comfortable with the sheep classification system, particularly the carcase assessment part, than with cattle. 10.5.6 Is the feed back of information from abattoirs adequate? While most abattoirs maintain there is no problem and that they pass back the classification details to producers with the payment details, many producers see this as a major issue. Some abattoirs are better than others, but many producers complain that for sheep the kill sheet information is not as good /timely as it could be or as accurate because of problems over identification. Because of the batch nature of sheep/lamb collection and sales, the mixing of loads from different producers on transporting lorries, the anecdotal evidence is that for many identification is compromised immediately the animal is killed and it is common for animal identification numbers on grade sheets not to tally. 10.5.7 Could the system be improved? It is clear from the representative of producers interviewed and the major issues raised in the above comments, that most producers have a problem with the operation with the current carcase classification system for sheep. These can be summarised as: 1. The main problem stems from the fact that there is no standardisation/ uniformity with the dressing specification and by implication point of weighing for sheep between plants. This not only 79 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep leads at the outset to a distinct lack of transparency but to accusations of ‘sharp’ practice. From the viewpoint of the producer it is very easy for the abattoir to remove weight before the point of weighing (e.g. through the removal of KKCF, the tail, the neck chops and the lap); anecdotal evidence is that it is not un common for this to be done by the abattoir to even compensate (the abattoir) for having to offer a higher price on a rising market! Actual evidence given to the consultants for prices and deductions for similar batches of lamb presented to different outlets clearly demonstrated the impact such nonuniformity can have on producer returns. 2. The non-involvement of the government /RPA in the sheep classification system means that compared to cattle, producers have far less trust of abattoirs who classify using their own staff. 3. The distrust is further exacerbated by the use of hot/cold rebates for weighing. 4. This distrust is even further exacerbated by the practice in some plants of rounding down to the nearest 0.5kg. 5. The lack of transparency is further inhibited, as with cattle, by the additional deductions to bid prices that are typically made [See general comment on prices] 6. The issues outlined in 1 and 4, have a greater impact on the producer return for sheep compared to cattle, because the lower carcase weight means that any reductions in weight (i.e. through dressing, rebates) have a greater proportional effect on overall value. 10.5.8 Should the system for sheep be mandatory as with cattle? All of the representatives of producers interviewed thought that the government should have a role in helping to standardise the system, and that it should be a made mandatory if this was the only way of achieving this. In Northern Ireland they have tried to help this by introducing some voluntary supervision of the operation of the scheme. 10.5.9 Are the deadweight sheep price reports useful for producers? The opinion of all the representatives of producers interviewed was that the reports provided a background against which the industry operated, but the deadweight prices for sheep are much less well regarded than with cattle, because of the lack of standardisation and the small sample size, and as a result producers remain more interested in the ‘spot’ liveweight quotes. 80 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep The least requirement to improve the system would be to increase the number of participating abattoirs in the sample. The size of the sample is vulnerable and if one centre stops sending through data then the survey is likely to be suspended due to commercial sensitivities of other participants. However, to date non-contributing abattoirs have resisted further participation and more political pressure may be required to increase the sample. [See also 10.6 general comment on prices] 81 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 10.6 Deadweight Price Reporting Some General Comments In a market system that comprises many buyers and sellers, economists see the availability of information on prices and their accuracy, as essential in maintaining the transparency of the market, confidence in the system and overall market efficiency. 10.6.1 Both cattle and sheep prices are reported historically - do these reporting lags cause problems? Because of the way in which they are collected both the weekly deadweight cattle and sheep average prices are quoted a week after the period to which they refer (i.e. they are lagged). As a result they are less well regarded/used as aids in the day-to-day ‘spot’ trading of livestock between producers and abattoirs. Most abattoirs and dealers buying/selling cattle and sheep on a regular basis overcome this by having their own market intelligence networks to keep abreast of daily changes. However, the majority of producers who sell livestock more periodically, and many small and medium abattoirs, have less access to such information and as a result still have to turn to the widely published liveweight prices to keep more abreast of changes in the market. 10.6.2 Are the price differentials accurate? A concern for the reporting of accurate deadweight prices is that as livestock numbers fall, the larger abattoirs in particular desperate for stock to maintain throughput in their larger plants, are more likely to fall into line and pay more equal prices across broader grids i.e. what amounts to an extension of flat rate buying. In such situations when there is less pressure to penalise those carcases that fall outside of the ‘target’ grid, the price differentials become less meaningful. The situation for sheep is exacerbated when abattoirs adjust their dressing specifications to further compensate. This is less easy to do now in cattle but many producers still believe that the system is still open to some manipulation. 10.6.3 Do ‘other deductions’ make it difficult to compare prices? Liveweight prices have many limitations (e.g. the accuracy of weighing in markets, particularly for sheep is for many still an issue), but not least that matching up liveweight quotes to deadweight is not easy, even with the openly quoted bid/offer prices, but it is much more difficult when the ‘other deductions’ (and bonuses) are taken into account. 82 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep With deadweight prices, as well as the problems of lack of standardisation for sheep and even with the better-understood bid prices for cattle, transparency can be compromised by such additional ‘discretionary’ ‘other deductions’ made by abattoirs. These can be for such as: • Payments to cope with SRM removal (often referred to in remittance advice sheets as SBM/SBO • Weighing and classification charge • Meat inspection charge • In Scotland it is common for an additional ‘marketing charge’ to be deducted, which according to correspondents is almost a cultural practice, accepted as a buying commission (or it can be thought of as a deadweight version similar to the liveweight luck money). • Other charges can also be made for contributions towards transport and insurance As far as most abattoirs are concerned the issues involved with such deductions are ones concerning the ‘terms of trade’ (similar to the view of some about dressing specifications in sheep) and one of which sellers should be aware (beware). The producer groups we spoke to maintained that most plants if asked are ‘up front’ about what these deductions are, but of the view that it is up to the buyer to find out (which is one of the services that group marketing provides). 10.6.4 Does the lack of standardisation impact on sheep prices? The additional issues with sheep prices because of the lack of standardisation (i.e. in dressing and weighing), means that there are mixed opinions about their usefulness, even from among large abattoirs in the same group (e.g. the abattoirs operated by the Grampian Group – St Merryn [who reports cattle and sheep prices] v Welsh Country Foods [who do not report prices] have different attitudes). At the same time EC Regulation 1481/1986 lays down the requirements for member states to report sheep prices to the EU. This is being done by AHDB from a small sample of the larger abattoirs that are reporting deadweight prices but based on a variety of different dressing specifications. With no involvement of the RPA in the sheep sector to check these prices, there is in the view of some a question about their credibility! 10.6.5 Is there a problem in accessing price information? The weekly deadweight cattle and sheep price information is provided to the industry by AHDB Meat Services Economics, using various media including recorded telephone message service, email/fax services, industry body websites and the agricultural press. It is also used in numerous industry publications and in response to specific industry requests and consultations. 83 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep This information can be provided to the industry at a subsidised rate as a result of the contracts held with RPA and Defra. Contract income for deadweight cattle and sheep service is shown in Table 10 below: Table 10. Cost of Price Reporting in GB RPA/Defra contract value 2007/08 Deadweight £35,800 cattle Deadweight £33,400 sheep Number centres 29 7 of Proportion weekly kill 62% of 16% (over 30% of those animals sold deadweight) Source: AHDB MS Economics However, there was some concern amongst those we interviewed that the break up of MLC into regional bodies (e.g. EBLEX, QMS, HCC) has led to greater difficulty in producers (and others) getting access to national price information (i.e. it was reported that the EBLEX web site only gives regional English information and not GB averages). As many producers and their related agents trade livestock on a national basis this is a problem, and the publication of the prices is not delivering the market transparency it was set up to do! 84 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 11. DISCUSSION AND CONCLUSIONS 11.1 Cattle Classification – ‘If It Isn’t Broke Don’t Fix It’ The general view of those interviewed, both abattoirs, producers and the regulatory bodies was that on the whole the cattle classification system worked well, and was by and large delivering, particularly for producers, a trusted basis for the deadweight sale of finished cattle. However, there was also a view that while the system may be fit for purpose today, there may be a need for additional measures of quality in the future. This may also help develop the nature of commercial relationships between producers and slaughterers. Two additional carcase attributes were raised most frequently in discussion during the course of the study: 1. Meat quality, particularly eating characteristics. 2. Meat yield and its objective measurement. Meat quality None of the additional quality attributes raised during the course of the study was very new - they were also considered during the development stages of the current classification schemes and discarded then due to inadequate measurement techniques. But technology has moved on, and the ability to better understand and control various quality attributes in a cost effective manner is today in some instances greater than when the current schemes were developed. However, it is our view that the introduction of techniques to assess quality attributes is probably best left for adoption by individual businesses (or supply chains) in response to commercial need, and should not be part of an official scheme. Within the context of how the UK and EU beef industry operates it may well be the case that such ‘eatability’ factors that are currently a part of schemes like the Australian MSA programme (weight for age, guidelines for enhancing beef flavour, techniques to optimise tenderness), should remain as part of the ‘quality assurance’ aspects of beef marketing, rather than part of a classification scheme. The MLC Blueprint for Quality Beef programme could, for example, be revised to take account of these latest developments. The science indicates that currently there is unlikely to be any single technique that will meet the needs of all sections of the industry. In addition great care will be needed in incorporating such measures in payment systems for producers, given that qualities being assessed can be markedly influenced by the processor. 85 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep It was also noted that past attempts to adopt a more quality-oriented approach through the supply chain have been held back by the separate ownership of production, slaughtering and processing facilities. Operations are now becoming increasingly integrated, in some cases reaching back to farm production level, bringing with them a different management perspective on quality enhancement. The EU Commission believes that additional quality-based measurements could be introduced if/when there is a EU wide need for them and when the measurements of quality - whatever they may be - are shown to work. Meat yield The potential advantages (and some of the disadvantages) of objective or machine measurement of conformation and fatness have been reviewed earlier. Methods such as VIA were frequently raised during interviews as a step forward, bur tellingly, support was stronger among producers than abattoir operators. Slaughterers perhaps were more conversant with the practicalities of VIA implementation than producers. The evidence is that the new methods are at present relatively expensive to install and subject to technical limitations, principally the measurement of fatness and the potential for bias. The expense of installation and operation may not be a problem for the ‘very large’ cattle abattoirs that supply some of the large multiple supermarkets, but it would be for the many ‘large/medium’ sized plants in the beef sector that still account for over 50% of UK cattle slaughter. For them the current system is both convenient and cost effective and many told us that they would not contemplate changing to a new system without financial help. At the same time however, some producers still see a potential benefit, however small, in replacing what they perceive as the current subjective means of beef carcase classification in the UK with an objective one, which they believe rightly or wrongly, could deliver greater consistency within and between plants, therefore improving confidence in the system. As a result the pressure to consider and develop alternative systems will continue and the means of using them to pay on a different basis e.g. on meat yield. The point has been made earlier, and no apology is given for making it again, that the present fat and conformation grid system is a perfectly suitable base on which to superimpose a meat yield payment system, if that is what the whole industry desires. The EU Commission does not see any reason to review the legislation to take account of any new systems of classification until these are more effective and are being used more widely. 86 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 11.2 Sheep Classification 11.2.1 The method works but its application on an industry basis leaves a lot to be desired While some of the aspects of sheep classification, particularly the assessment of fatness and conformation, were seen to work if carried out by trained personnel, the overall classification system for finished sheep, particularly from the point of view of many producers leaves a lot to be desired. Nationally the sheep carcase classification system was not seen to be delivering what it should i.e. a trusted/transparent basis for the deadweight sale of finished sheep between producers and abattoirs. The main reason for this was seen to be the lack of standardisation of dressing specifications and weighing and the problems in application and comparison that this caused. 11.2.2 A way forward for sheep classification To date there have been a number of attempts to tackle the problem of the lack of standardisation of dressing specification and weighing, through meetings between representatives of producers and abattoirs, but no real progress has been achieved. All the representatives of producers interviewed saw it as a major problem, which is severely hampering the development (health) of the sheep industry. Only one producer marketing group we spoke to (a small group) did not see it as a major issue as they only traded with one abattoir, which they trusted. Some abattoirs see it as a problem that inhibits competitiveness; others see it merely as a ‘terms of trade issue’ in the buying/selling of livestock between the abattoir and the producers, which should be dealt with on a one to one basis (i.e. ‘let the seller beware’). Other abattoirs maintained that producers were also not averse to indulging in ‘sharp practice’ (e.g. in the manipulation of the quality of sheep/lambs in batches), and that abattoirs needed to be able to manipulate the ‘terms of trade’ to protect themselves. Given the attitudes in the industry it is difficult to see that the problems with sheep classification will be resolved by multilateral agreement, so what are the options for change? 1) To some farmers the only solution was further support for the radical option that they needed to control the entire supply chain (e.g. learn from the Danish and New Zealand experience). 2) As with cattle, the government could intervene and establish a more standard system, carried out by an independent classification body policed by the RPA. Or it could first try a Northern Irish approach and broker a voluntary standardisation and supervisory scheme 87 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 3) Introduce standard new technology in the larger plants (e.g. VIA equipment), which to work properly (given the experience of the trial at Welsh Country Foods in 2006/07) would need independent calibration and monitoring and an agreement on the use of standard dressing specification. However, it has been pointed out that a move to a VIA system that gave greater standardisation and transparency, still may not benefit all producers. In a market with decreasing supplies for example, there will still be some who will be very happy to sell sheep of heterogeneous quality on a flat rate basis. Similarly, as with cattle such a move may also not be seen as a cost effective solution for some of the main sheep abattoirs, particularly the large export/Halal plants that accounted for almost 30% of sheep slaughtering in 2007 (but who by and large do not supply the supermarkets). Given the nature and structure of the sheep industry it is difficult to envisage a move towards greater standardisation without some form of legislative compulsion or incentives to introduce new methods of working. AHDB IC CMP/KM/JC Nov 2008 88 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep REFERENCES Allen, P. and Finnerty, N. 2000. Objective Beef Carcass Classification – A report of a trial of three classification systems. The National Food Centre, Teagasc. Chadwick, J.P. and Kempster, A.J. 1983. The estimation of beef carcase composition from subcutaneous fat measurements taken on the intact side using different probing instruments. J. Agric. Sci.. 101 (1): 241-248. Charles, D. D. 1964. Classifying Trade Beef by specifications. Aust. Vet. J. 40: 27-31. EBLEX, HCC, LMCNI and QMS, 2007. An evaluation of the use of video image analysis to predict the classification and meat yield of sheep carcases. A report for the Devolved Bodies, E+V and the Welsh Country Food Group. EU Commission. 2002. Report from the Commission to the Council on the implementation of Council Regulation No. 2137/92 concerning the Community scale for the classification of carcasses of ovine animals. COM/2002/0295 final. Fisher, A. V., Tayler, J. C., de Boer, H. and van Adrichem Boogaert, D.H. (eds.) 1976. Criteria and methods of assessment for Carcass and Meat characteristics in beef production experiments CEC, Luxembourg (EUR 5489) Harrington, G., 1973. Some technical problems in developing a beef carcase classification system. Institute of Meat Bulletin No 80, 21-26. HMSO, 1930. Report of the First Inter-Departmental Committee [the Bentinck committee] on the Grading and Marking of Beef. Cmnd. 3548 HMSO, 1932. Report of the Second Inter-Departmental Committee [the Kirkley Committee] on the Grading and Marking of Beef. Cmnd. 4047 HMSO, 1964. Ministerial statement to Parliament. ‘Marketing of Meat and Livestock’ Cmnd. 2737 HMSO, 1964. The [Verdon-Smith] Committee of Inquiry into Fatstock and Carcase Meat Marketing and Distribution. Cmnd. 2282 HMSO, 1967. Agriculture Act of 1967 (Chapter 22) Kempster, A. J., Cuthbertson, A. and Harrington, G. 1982. Carcase evaluation in Livestock Breeding, Production and Marketing. Granada Publishing Ltd Kempster, A. J.; Chadwick, J. P.; Charles, D. D. 1986. Estimation of the 89 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep carcass composition of different cattle breeds and crosses from fatness measurements and visual assessments. J. Agric. Sci. 106 (2): 223-237. MLC, 1972. Press Release 17/72. “Beef Classification Plans announced ”. MLC, 1980a. Beef Conformation – appealing to eye or pocket? Leaflet. Meat and Livestock Commission, Bletchley, Bucks. MLC, 1980b. Commercial Sheep Production Yearbook, 1979 – 1980. MLC, 1990. A Blueprint for improved consistent quality beef. Milton Keynes, The Meat and Livestock Commission. MLC, 1992. A Blueprint for improved consistent quality pork. Milton Keynes, The Meat and Livestock Commission MLC, 1994. A Blueprint for lean and tender British lamb. Milton Keynes, The Meat and Livestock Morgan, J.B., Savell, J.W., Hale, D.S., Miller, R.K., Griffin, D.B., Cross, H.R and Shackelford, S.D. 1991. National Beef Tenderness Survey. J. Anim. Sci. 69:3274 – 3283. Richardson, R. I. 2005. Improving the quality of beef: optimising inputs in production and processing. The Science of Beef Quality. BSAS Conference, 18/19 May, 2005. Rius-Vilarrasa, E., Bunger, L., Matthews, K., Maltin, C., Hinz, A. and Roehe, R. 2007. Evaluation of video image analysis (VIA) technology to predict meat yield of sheep carcases online under abattoir conditions. Proceedings of the British Society of Animal Science. Southport, BSAS. Smith, G. C.1980. Grades for the future: what, why and how? Proc. 33rd Annual Recip. Meat Congress, June 1980, pp 89-99. Thompson, N. 2002. Managing Meat Tenderness. Meat Science 62: 295308. Wheeler, T.L., Cundiff, L.V. and Koch, R.M. 1994. Effect of marbling degree on beef palatability in Bos Taurus and Bos Indicus cattle. J. Anim. Sci. 72:3145 – 3151. Wulf, D.M., Morgan, J.B., Tatum, J.D. and Smith, G.C. 1996. Effects of animal age, marbling score, calpastatin activity, subprimal cut, calcium injection and degree of doneness on the palatability of steaks from Limousin steers. J. Anim. Sci. 74:569 – 576. Yeomans, J., 2008. Lamb Grading September/October pp 26 – 29. 90 Technologies. Sheep Farmer AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep APPENDIX 1 Companies and Organisations Contacted Producer Organisations and Marketing Groups Company Location Contact Record activity of Responsible England and Wales NFU Stoneleigh Dylan Morgan 024 7685 8638 Letter sent 25/6 Interview 9/9 MP,CC EBLEX Huntingdon/ Winterhill Nick Allen Interview 18/6 KM, CC,MP HCC Aberystwyth Dewi Hughes 07779 325367 Interview 23/7 MP, JC RPA Carlisle Ian McTurk + Interview 29/9 six others MP, JC Bob McEwan Interviewed MP Peter Morris 1st contact May Letter sent 26/6 Interview 8/9 MP NBA Kim Marie Letter sent 25/6 Haywood Interviewed MP FUW Fenwick Interview 23/7 MP StratfordMeadow Quality (formerly upon-Avon, Meadow Valley Warwickshire Interview 2/10 MP North Country farmers group Information received 9/10 MP Interview 11/9 MP RPA Scottish Inverurie Executive, Rural Directorate Malvern NSA Livestock) May Hill Lamb Gloucester Producers Group Mike Credland South Farmers Richard Interview 22/7 Haddock & SW NFU West 91 MP,JC AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep BPA Stuart Roberts Interview 12/9 KM,MP AIMS Norman Bagley Interview 20/8 JC Andy McGowan Contacted, Intro MP meeting 12/6 Scotland QMS Edinburgh Contacted, info MP received 17/10 NFUS Northern Ireland – See programme details David Wright + Interview 6/8 four others DARD LMC KM,CC KM,CC Contacted meeting arranged wk com. 4/8 Belfast Ulster Farmers Union David Thompson Interview + letter KM,CC 1/9 NI producer group / cooperative Fane See Linden Foods Brussels EU Commission Animal Products Unit Frank Bollen Interview Administrator 31/7 30- MP,KM Carl Green – Seconded National Expert 92 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Abattoirs Consulted Abattoirs Company Location Beef and Sheep Beef Only Sheep Only Large Medium Medium /Small <75 Record of activity England and Wales ABP Birmingham ✔ Shrewsbury ✔ Ellesmere ✔ Great Harwood Perth ✔ York ✔ ✔ ✔ Colne Woodhead/ Morrisons Pinchbeck WCF Grampian ++Jaspers ✔ ✔ Langport ++Southern Counties / RHM Woodhead Bros Interview 23/7 ✔ / Gaerwen Launceston ✔ Treburley ✔ No response, replaced by St Merryn ✔ Interview Aug ✔ ✔ Interview Aug ✔ ✔ Letter sent ✔ ✔ Interview 24/7 ✔ Cig Cybn Caernavon ✔ Hewitt Chester ✔ ✔ Interview Aug ✔ ✔ Interview 22/7 ++Snells Tatworth / Dorset ✔ Interview Aug la ✔ ✔ Interview 1/10 Oldham ✔ ✔ Interview Aug Gloucester ✔ ✔ Interview Aug Pickstocks Ashby Zouch J & B Fitton Ensors de 93 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep Sargeants Uttoxeter Jagger Green Hall ✔ ✔ Interview 2/10 ✔ ✔ Interview Aug Jewitt Spennymore ✔ St Merryn* Launceston ✔ ✔ ✔ ✔ Bodmin Merthyr Tydfil Letter sent – no response replaced Interview + telephone discussion 23- 25/7 ✔ Scotland *McIntosh Donald/Gram pian Aberdeen ✔ ✔ Munro *Scotch Premier ✔ Inverurie ✔ Dornoch A Vivers Annan Mathers Inverurie ✔ Orkney Meat Orkney ✔ Interview 18/9 ✔ ✔ Letter sent Replied ✔ Interview 17/9 ✔ ditto Letter sent, taken over by Scotbeef during fieldwork period, replaced with Mathers ✔ ✔ Interview 17/9 ✔ Letter sent Replied Northern Ireland Dungannon **Linden Foods (now ✔ ✔ ✔ ✔ ✔ Interview 4/8 own Whitley Bay Meats in Tyne & Wear, also part of Fane a NI producer co-op) **Dunbia Dungannon (Also own 3 plants in England and Wales) 94 Interview 5/8 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep APPENDIX 2 Extent of Classification in the EU 2007 Member State No. of No. of No. of No. of No. of Average Carcases abattoirs carcases licensed inspectors control no. of checked classifying classified classifiers for visits control as % of BCC to abattoirs visits per total abattoir classified Belgium 33 496,555 120 6 458 13.9 2.7 Bulgaria 4 8,913 5 4 14 3.5 3 Czech Rep 70 170,163 184 11 745 10.6 8.8 Denmark 8hc 193,546ac 41 0.5 230hc 28.8hc 4.2hc 3ac 267,372ac 0 0.5 94ac 31.3ac 1.4ac Estonia 3 30,442 7 1 27 9 3.2 Germany 160 2,539,097 282 42 1134 7.1 2.8 Greece 64 147,556 83 83 316 4.9 5.8 Spain 274 1,526,188 689 74 1420 5.2 1.6 2,150,486h France 242hc 580 62hc 1631hc 6.7hc 1.3hc c 1,329,438a 28ac 0 40ac 321ac 11.5ac 0.9ac c ROI 7hc 108,398hc 95 8hc 49hc 7.0hc 2.4hc 1,579,988a 25ac 0 8ac 183ac 7.3ac 1.1ac c Italy 225 1,641,360 921 172 824 3.7 1.9 Cyprus 1 17,348 3 3 4 4 0.9 Latvia 9 44,661 20 8 69 7.7 5.1 Lithuania 14 200,353 41 5 204 14.6 3.6 Luxembourg 3 23,186 6 3 9 3 0.8 Hungary 42 120,889 52 5 209 5 2.5 Malta 1 4,247 1 1 n.a. n.a 0 Netherlands 9 481,592 39 4 87 9.7 0.9 Austria 148 521,968 95 4 624 4.2 0.6 Poland 61 826,877 129 13 564 9.2 2.7 Portugal 40 281,167 59 7 157 3.9 2.1 Romania 64 122,787 45 10 153 2.4 3.9 Slovenia 14 99,227 16 3 89 6.4 2.8 Slovakia 65 76,429 150 3 86 1.3 1.5 Finland 12 256,777 46 3 137 11.4 2.8 Sweden 46 419,000 145 3 267 5.8 2.3 UK 86 2,261,668 174 12 803 12 1.2 EU-27 1,761 17,947,678 4,028 599 10,908 1.9 Source: EU Commission Notes: hc: human classification ac: Automated Classification Sources: Member states 2007 End of report 95 AHDB Industry Consulting 2008© Review Of The EU Carcase Classification System For Beef And Sheep 96 AHDB Industry Consulting 2008©
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