Meat and Livestock Australia is reporting that the improvement in premiums suggests that demand for MSA beef has been strong, despite a further increase in the quantity of MSA graded product entering the market.

MSA grading numbers for cattle in 2007-08 were up 16pc on 2006-07, with more than 830,000 head graded.

MLA says the program continues to gain momentum in Queensland, with adoption by major processors leading a 20pc increase in grading numbers compared with 2006-07.

Over the 12-month reporting period, the wholesale price for MSA-graded carton sales was on average 10pc higher than non-MSA carton sales.

This compares with a 3pc premium in 2006-07.

The price charged for grainfed yearling cuts was 10pc higher than the non-MSA equivalents and yearling grassfed prices were 15pc higher than the non-MSA types.

Over the fiscal year to June, the survey also revealed that 92pc of wholesalers selling MSA beef thought the quality was 'good to excellent'.

At retail, the price charged for MSA-graded steaks was on average 9pc higher than non-MSA steaks – this compares to an 8pc premium over 2006-07.

The MSA price premiums also recovered for cube rolls and butt fillets (to 15pc and 12pc, respectively), while the premium for knuckle was 5.7pc over the June quarter.

The survey also revealed that 93pc of butchers selling MSA beef thought the quality was 'good to excellent', although 84pc also rated the quality of non-MSA beef as 'good to excellent'.