Wagyu Cattle Breed Standards for export

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Wagyu Cattle Breed Standards for export This document has been developed by Fundación Chile, at the request of the Agricola Mollendo S.A. Company, under contract to provide services for Research and Development covered by the Tax Benefit Law 20.241, certified by Innova Chile, CORFO. Author: Address: Parque Antonio Rabat 6165, Vitacura, Santiago Phone: (2) 2400429 Fax: (2) 2419387 www.fundacionchile.cl

INDEX WAGYU GENETICAL QUALITIES..3 CHAPTER I: THE WAGYU ANIMALS... 3 Section 1:... 3 Section2:... 3 Section 3:... 4 CHAPTER II: THE RECORDS.... 4 Section 4:... 4 CHAPTER III: THE FILIATION... 4 Section 5:... 4 CHAPTER IV: DOCUMENTATION... 6 Section 6:... 6 WAGYU BEEF QUALITIES... 7 CHAPTER V: CHARACTERISTICS OF THE CARCASSES... 7 Section 7:... 7 Section 8:... 7 Section 9:... 7 Section 10:... 8 Section 11:... 8 CHAPTER VI: CHEMICAL CHARACTERISTICS... 10 Section 12:... 10 CHAPTER VII: SANITARY CHARACTERISTICS... 11 Section 13:... 11 Section 14:... 11 CHAPTER VIII: REQUISITS OF THE BEEF PROCESSING FACILITIES (PFC)... 11 Section 15:... 11 Section 16:... 11 Section 17:... 11 Section 18:... 12 1

CHAPTER IX: PROCESS IN THE SLAUGHTERHOUSE... 12 Section 19:... 12 Section 20:... 12 Section 21:... 12 Section 22:... 12 Section 23:... 12 Section 24:... 13 Section 25:... 13 CHAPTER X: SMALL PARTS, PACKAGING AND CONDITIONING.... 13 Section 26:... 13 Section 27:... 13 2

CHAPTER I: THE WAGYU ANIMALS Section 1: The animals that are considered Wagyu are all products resulting from the cross breeding of Wagyu bulls. Also considered as Wagyu are all products resulting from the cross of a cow or heifer breeding with a Wagyu. These products must have at least 50% of Wagyu genetics. Of the animals, all the animals that are within the Wagyu breeding program must have Official Identification Devices (DIIO). In case animals don t have DIIO, where their original identification must be changed, there must be records that associate the original identification to the DIIO. Of the bulls for breeding, Wagyu breeding bulls are all those that are entered in the Wagyu breed registry, in any of the 5 authorized institutions that carry genealogical records in Chile; SOFO, SNA, SAGO, OGANA and ASOGAMA. Also must be up to date in PABCO A. Of the cows and heifers for breeding, Wagyu breeding cows and heifers are all those that are entered in the Wagyu breed registry, in any of the 5 authorized institutions that carry genealogical records in Chile already mentioned. Also must be up to date in PABCO A. The Wagyu breeding bulls, cows and heifers must have genetic material available for the paternity test. In the event that the foregoing is not available, a DNA sample of the Wagyu breeding animals must be sent to the laboratory, along with the offspring s DNA sample to confirm breeding. In the case a DNA sample is not available from the Wagyu breeding animals; ALL descendants will not be considered Wagyu under this standard, because paternity will not be confirmed if required. Section 2: All animals that enter the Wagyu crossing program, regardless of their genetics, must be up to date in PABCO A. 3

Section 3: Breeding: If the Wagyu breeding bull is crossed with a female bull without demonstrable Wagyu genetics, the product is called F1. If the Wagyu breeding bull is crossed with an F1 female, the product is called F2. If the Wagyu breeding bull is crossed with an F2 female, the product is called F3. This is the same way for the subsequent crosses. CHAPTER II: THE RECORDS Section 4: The records of all animals must have individual records to establish the genealogy and behavior in the cattle cycle events. For this, they must have the following minimum records: 1) Identification of bull(s) used 2) Identification of cow(s) and/or heifer(s) cubiertas 3) Date(s) of cubierta(s) 4) Date of Birth 5) Identification of the offspring CHAPTER III: THE FILIATIONS Section 5: From the filiations, those called Wagyu calves are those that meet the following requirements: Cover- partum period: It is assumed that the cover- partum period is of 288 days average for the Wagyu race, with a 6% margin of error, so for the products of the Wagyu crossing program, the offspring that are born beyond this range (288 days +1 17 days <271 or >305 days) will not be considered products of guided mating (MD) or Artificial Insemination (IA) recorded for them. 4

Visual Inspection: If there are any inconsistencies in the cover- partum period, a visual inspection will be conducted on the animal to confirm the Wagyu racial characteristics. While this test is not conclusive by itself, the visual inspection is imperative (phenotypic evaluation) to support the management of the Wagyu standard, thus exclude the animals that don t represent the race. The Wagyu race is defined by the live animal s characteristics within which the most relevant are listed below. N Head 1 2 Neck 3 Cross 4 Lumbar back line 5 Spine 6 Thighs Wagyu Standard Regimen Review Small in respect to the size of the animal Small in respect to the size of the animal, long, narrow face with a straight profile, forehead a little depressed with large nostrils and muzzle. Fine, thin and long Relatively thick Straight, without a prominence Broad Wide, thick and fleshy 7 Tail Short and thin, finished in rich tassel of black hair and/or reddish. Paternity Test: Paternity Testing in the case of having to prove the paternity of the animals of the Wagyu crossing program with inconsistencies in their records (e.g. covered- partum period), but the product suggests phenotypically Wagyu origin, DNA samples must be taken for the laboratory analysis to establish the paternity of the offspring with respect to the Wagyu bulls used during that season. In case of doubt, by some stakeholders as to the conformity or non- conformity resulting from the process of inspection of the records and of the filiations, paternity tests may be made, which will be considered sufficient argument to prove or reconsider the initial classification. 5

CHAPTER IV: DOCUMENTATION Section 6: Of the documentation required to demonstrate the presence of Wagyu breeding animals as well as Wagyu germplasm. Germplasm: Up to date documentation must be available at the current site of purchase or receipt of Wagyu semen, as well as any changes in inventory. Wagyu breeding animals: Also the records to demonstrate the presence of Wagyu breeding bulls, cows or heifers in the property on the dates recorded of mating events. 6

WAGYU MEAT QUALITY CHAPTER V CHARACTERISTICS OF THE CARCASSES Section 7: Age of animals at slaughter time: There is no age restriction for Wagyu animals under this standard, because its main object is to meet the export market requirements and classify the level of fat infiltration, an attribute that is not necessarily in direct relationship with age of animals. Section 8: Beef Color: (the normal muscle has a cherry red color ranging from light red to dark red; this is influenced by age, feeding, ante mortem treatment, bleeding system, etc.) According to the standard red color of meat, the colors accepted are between N 2 to N 6 Source: Japanese Meat Grading. This standard does not require specifying the number of color; therefore it should be evaluated by the certifier as complying or not complying as appropriate. Section 9: Fat Color: (The color of the adipose tissue goes from white to deep yellow, depending on age, diet, race etc.) White for all categories: (No. 1 to No. 4) evaluated in the carcasses in the cross section between 11 and 12 vertebrae. 7

Color standards for beef fat (BFS.) BFS Scale (Beef Fat Standard) No.1 No. 2 No.3 No.4 No.5 No.6 No.7 Source: Japanese Meat Grading. This standard requires specifying the fat evaluation number. Section 10: The total area of the spine: Measurement of total area longissimus dorsi muscle, spinalis thoracis, spinalis thoracis transversus, intertransversalis thoracis, must be 15 inches2. Section 11: Marbling: (Referring to the amount and distribution of intramuscular fat. It can be seen at the eye of the loin (BMS, Beef Marbling Standards). The presence of marbling will be evaluated according to the Japanese scale ranging from 1 to 12, 1 being the lowest level of infiltration and 12 the highest level of infiltration. Marbling levels for exports shall be classified in three quality levels. SILVER GOLD PLATINUM 3 a 5 6 a 7 8 a 12 Source: Japanese Meat Grading. This standard requires specifying the fat evaluation number. Wait at least 30 minutes after work is completed in the cutting rooms, because of the low fusion point of the fat, the marbling is not properly appreciated and re- condensing is necessary. 8

Each cut should be identified according to their classification on a label which shall be certified by a competent company in the field. The certifier must ensure that the boxes report the classification of the cuts. In the case of having two or more levels of quality in a box, it should be labeled with the lowest classification that is contains. Levels below 3, even having the appropriate certification will be considered "out of standard. In these cases, at labeling time, this should be left blank, in export categorization, thus assuming the "out of standard" position. Procedure will be included as visual comparison with the indicated table considering: First criterion of similarity is a comparison with the visual scale Second, the level of homogeneity of marbling, i.e. those carcasses that present a homogeneous level will have better qualifications. If there is a good level of marbling but with a bad distribution, i.e., spaces in the muscle without infiltration, the classification will be lowered by one point. Third, the thickness of the marbling in streaks, in those cases where the veins are of good thickness these will have better qualifications. 9

Source: Japanese Meat Grading. CHAPTER VI: CHEMICAL CHARACTERISTICS Section 12: The ph at the time of the chamber output must be less than 6.0 (six), measured in the muscle "Longissimus dorsi. 10

CHAPTER VII: SANITARY CHARACTERISTICS Section 13: The beef must meet all health requirements established by current legislation (Food Health Regulations). Section 14: 48 hours after the slaughter of the animal, the internal temperature of the beef should permanently be 7ºC or less, measured at the (Longissimus dorsi) muscle, at the height of the 12th dorsal vertebra. The standards outlined in this section should be complemented with the legal provisions contained in the 94th Decree of 2008, of the Agriculture Ministry. CHAPTER VIII: REQUISITES OF THE BEEF PROCESSING FACILITY (PFC) Section 15: Constituents of the Wagyu animal slaughter must ensure that those responsible for the PFC s must contractually commit to compliance of this regulation. Section 16: Shall meet the following requirements of the regulations and subsequent amendments: Law 19.162 6 19.797 which establishes a mandatory cattle classification system, typification and nomenclature of their beef and regulates the operation of slaughterhouses, refrigeration and industrial establishments of the meat and Law 20.358 which established the modification of the Meat Act No. 19.162. Section 17: The sacrifice of animals is conducted under qualified slaughter plants for export, under the List of Livestock Exporters Establishments (LEEPP) of the SAG, for bovine cattle and for the U.S. markets and the European Union. 11

Section 18: To fulfill this standard compliance checks will be conducted and inspection reports by Fundacion Chile. CHAPTER IX: PROCESS IN THE SLAUGHTERHOUSE Section 19: The abattoir must provide a reliable method to maintain individual traceability of animals, associating DI10 with the identification of the carcasses provided by the slaughtering plant. Section 20: The identification tags will remain in the carcasses until the quartering. Section 21: The sacrifice will be made so that the animal suffers the least possible stress. The minimum requirements to be respected during this phase are: Immobilization and quiet stunner. Bleeding wings as complete as possible. Applying electrical stimulation is authorized according to the current legislation. The dressing of the carcasses will be held under current legislation Section 22: The carcasses will be outside the standard with evident surface condensation. Section 23: Maturation will be held for no shorter than 10 days, starting from the slaughter date, so time will elapse from the carcasses in the slaughtering plant to vacuum- packed beef and frozen. 12

Section 24: Maturation units must be grouped into specific areas within the freezers, avoiding physical contact with other meat pieces. Section 25: The slaughtering plant will count with a Quality Assurance System (SAC) a system based on Hazard Analysis and Critical Control Points (HACCP), ensuring in this way, food safety throughout the production chain. CHAPTER X: SMALL PARTS, PACKAGING AND CONDITIONING Section 26: The product s traceability is always guaranteed, at the sub lots level comprising the category defined by the beef law, within each of these sub lots, the carcasses will be grouped assessed by the BMS, which will be ordered by levels of marbling, and must enter entirely (forequarters and hindquarters), thus resulting with BMS classification cuts. Section 27: The packaging must ensure easy product identification and its adequate protection; the materials must be clean, new, and odorless, not cause changes to the product and comply with current legislation. 13

CHAPTER XI: RESUME: TECNICAL SPECIFICATIONS FOR THE EXPORT OF WAGYU C Beef Color N 2 to N 6 Fat Color White (1 to 4) Total area of Loin 15 pulg² Marbling (Japanese scale) Silver: 3 to 5; Gold: 6 to 7; Platinum: 8 ph outside of the frezeer Maturation Less than 6 (six) 10 Days 14

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