Angus achieves 25 cent premium

Angus achieves 25 cent premium


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AuctionsPlus Angus vs non-Angus. 100 per cent Angus breeds on AuctionsPlus have held an average premium of 25/kg lwt (or 8 per cent on a percentage spread basis) over non-Angus breeds since mid-2015.

AuctionsPlus Angus vs non-Angus. 100 per cent Angus breeds on AuctionsPlus have held an average premium of 25/kg lwt (or 8 per cent on a percentage spread basis) over non-Angus breeds since mid-2015.

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The Stock Take: Mecardo's Matt Dalgliesh looks at the premium that exists for Angus cattle.

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Mecardo recently presented at the "Angus through the ages" conference in Albury, looking at the premium that exists for Angus cattle.

Focusing solely on cattle sold via AuctionsPlus and comparing cattle sold that had both sire and dam listed as Angus (100 per cent Angus) versus all other cattle, excluding other premium cattle types like Wagyu we were able to determine that 100pc Angus breeds generally hold a premium over the non-Angus types.

On a cents a kilo live weight basis, on average 100pc Angus cattle achieve 25 cents above the non-Angus breeds.

Furthermore, the normal range for the premium is between 12-38 cents. Premiums above 50 cents or below 1 cent would be considered rare.

Applying similar statistical measures to the premium on a percentage spread basis shows that the average Angus premium sits at 8pc, with a normal range of 5pc to 13pc premium.

What does it mean?

As has been shown recently in the Wagyu premium market, the presence of a quality breed branding doesn't always carry a premium attached.

Throughout 2018, the Wagyu premium deteriorated on the back of a flood of mediocre Wagyu F1 crosses.

Angus breeders need to keep ahead of the pack with a focus on provenance, traceability and quality assurance.

The advancement in objective meat quality measurement tools offers both an opportunity and a risk to Angus producers.

When the technology can provide an objective score for a range of preferred traits, such as IMF, Angus producers can show how their product is superior to others.

However, if other breed types can also demonstrate similar scores to Angus cattle then they will be able to close the premium price gap.

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