Inflation kicks shift to case-ready supermarket meat along

The latest development has been Woolworths announcing it will close most of its in-store butcher counters from March, a move Australia's other big supermarket Coles made two years ago.

Experts say the die was cast when German discount supermarket Aldi entered the Australian market in 2001 and did not have in-store butchers. It was able to lower the unit cost via centralising its meat preparation and introduced the Australian consumer to buying 'pick-up-and-go' style meat.

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Retail and consumer behaviour expert Professor Gary Mortimer, from the Queensland University of Technology, said the shift to case-ready meat in supermarkets was happening globally, led by the United States and United Kingdom.

With food price inflation fast rising - and red meat certainly being a category called out in that regard - supermarkets must look to all avenues to reduce operational costs and centralising packaging was one way to do that, he said.

The advantages for the consumer are lower prices as those efficiencies are passed on, along with consistency and convenience.

"Rather than hundreds of butchers all cutting their store's fillet steak at a different thickness, it's all done the same, so the customer knows exactly what to expect regardless of what store they are in," Dr Mortimer said.

"The downside is the customer loses access to expert advice, and may not be able to get the particular cut they are looking for.

"That opens up an opportunity for the local butcher, who can offer cooking instructions, advice about cuts and provenance."

Dr Mortimer felt supermarkets would target the very large middle income market in terms of what cuts were offered - rump and chuck rather than t-bones and Wagyu.

"Middle income earners want a reasonably good cut of meat and good quality at an affordable price," he said.

"If you're a premium beef shopper you are probably already going to a butcher."

The shift was unlikely to have any negative impacts to operators further up the supply chain, he felt.

"In fact, if cost pressures can be mitigated and retail prices kept down, that increases demand and therefore throughput of red meat which ultimately benefits the producer," he said.