1. Beef Quality Grading, Yield Grading and Pricing

2. Slaughter By-Products ($/cwt) $66/cwt$109/cwt Fab/Processing Credit Items: Fat $8.50/cwt Bone $5/cwt CH $161.32/cwt SE $154.82/cwt Dressing % YG & QG J. D. Tatum, 2000 Dressing Percentage: Hot Carcass Weight, lb Live Weight, lb X 100

3. Beef Carcass Terminology Muscling Ribeye Round Sirloin Rib Chuck Quality Marbling, color Texture, firmness Trimness Ribeye Round Sirloin Short loin Loin edge Rib Chuck KPH Cod/udder

5. USDA Beef Quality Grades Quality grades are an estimate of beef palatability Tenderness Juiciness Flavor

6. Sex Classes of Beef Carcasses Essential for Quality Grading because only Heifers, steers and Cows are Quality Graded. Heifer Steer Cow Bullock Bull GradedNot Graded

7. USDA Quality Grades Based on consideration of two general factors: 1.Physiological Maturity Skeletal Maturity Lean Maturity 2.Marbling (Intramuscular Fat) Amount Distribution

8. USDA Beef Grades USDA Maturity Scores: –A, B, C, D, E (young to old) USDA Marbling Scores: –Abundant, Moderately Abundant, Slightly Abundant, Moderate, Modest, Small, Slight, Traces, Practically Devoid, Devoid (most to least intramuscular fat)

9. USDA Quality Grades Grades of Youthful Carcasses (< 42 mos.) Prime Choice Select Standard Grades of Mature Carcasses (> 42 mos.) Commercial Utility Cutter Canner

10. Relationship between tenderness and USDA maturity scores

11. Physiological Maturity vs Chronological Maturity The physiological maturity of the carcass is an estimate of the actual chronological age of the animal USDA Maturity ScoreEstimated chronological age A9 to 30 months B30 to 42 months C42 to 72 months D72 to 96 months E96 or more months

12. Physiological Maturity Skeletal Maturity is determined by evaluating the condition of the cartilage in the vertebral column, with heavy emphasis placed on the cartilaginous buttons at the end of the thoracic vertebra Lean maturity is determined by the color and firmness of the ribeye at the 12 th 13 th rib interface

14. Skeletal Maturity ABCDE Sacral Distinct separation Some separation Fused Lumbar No ossification Partial ossification Mostly ossified Ossified Thoracic* 0-10%10-35%35-70%70-90%90% + *Average ossification of first three thoracic vertebra

15. Determining Lean Maturity

16. Determining Overall Maturity Composite of Lean and Skeletal Within 40 degrees avg. More than 40 degrees avg. and then move 10 degrees toward the skeletal Skeletal old and lean young cannot: Bring to overall back to young if older than C 20 Cannot move more than 100 degrees from skeletal

17. Marbling Slight 00 Small 00 Modest 00 Moderate 00 Moderately Abundant 00 Slightly Abundant 00

18. USDA Quality Grades

19. Additional Factors that Affect Quality Grades Ideal Discounted

21. Odds of an Unpleasant Eating Experience USDA Quality Grade Odds of Having an Unpleasant Eating Experience % Steers/Heifers in National Consist (NBQA, 2000) Prime3% (1 in 33)2% Upper 2/3 Choice10% (1 in 10)17% Low Choice16% (1 in 6)32% Select27% (1 in 4)42% Standard50% (1 in 2)7%

22. Quality Grade Distribution in 1991 and 1995

23. Additional Factors that Affect Value

24. USDA Yield Grades

25. Beef Yield Grades USDA Yield Grades predict the percentage of carcass weight in boneless, closely trimmed retail cuts from the round, loin, rib and chuck

26. Slaughter By-Products ($/cwt) $66/cwt$109/cwt Fab/Processing Credit Items: Fat $8.50/cwt Bone $5/cwt CH $161.32/cwt SE $154.82/cwt Dressing % YG & QG J. D. Tatum, 2000 Dressing Percentage: Hot Carcass Weight, lb Live Weight, lb X 100

27. USDA Yield Grades Yield/Cutability estimates are determined using four criteria –Hot Carcass Weight, lbs –Adjusted Fat Thickness, in. –Ribeye Area, in 2 –% KPH

28. USDA Yield Grade USDA YG%BCTRC 1234512345 52.3 % or More 52.3 - 50.0% 50.0 - 47.7% 47.7 - 45.4% 45.4% or Less %BCTRC = 51.34 – 5.784(Adj.Fat) – 0.462(KPH) + 0.740(REA) – 0.0093(HCW)

29. Yield Grade Basics 1.Fat Thickness – 12 th Rib 2.Rib Eye Area to Hot Carcass Weight adj. 3.Kidney, Pelvic & Heart Fat

30. Step 1 Ft thickness 12 th rib Known at PYG (Preliminary Yield Grade) Step 1. Estimate Fat thickness ¾ the distance around the ribeye. Measured in inches. Step 2. For every 0.1 inches add.25 to the base 2.00. Example: FT= 0.6 0.6/0.1 = 6 6 x 0.25 = 1.5 adjustment 2.0 + 1.5 = 3.5 PYG

31. Yield Grade Basics 1.Fat Thickness – 12 th Rib 2.Rib Eye Area to Hot Carcass Weight adjustment 3.Kidney, Pelvic & Heart Fat

32. HCW to REA Step 1. Estimate the REA between the 12 th and 13 th rib. Measured in square inches. Step 2. Find the difference between the actual and the ribeye needed for the weight. Base 600 needs 11.0 and for every 100 lb change in HCW the ribeye area needed changes 1.2 sq. in. Example: Actual REA= 15.6 HCW= 725 15.6 - ? = ? (diff. in REA x.3)= ??

33. HCWREAHCWREA 60011.082513.7 62511.385014.0 65011.687514.3 67511.990014.6 70012.292514.9 72512.595015.2 75012.897515.5 77513.1100015.8 80013.4 Ribeye to HCW adjustments

34. HCW to REA Step 1. Estimate the REA between the 12 th and 13 th rib. Measured in square inches. Step 2. Find the difference between the actual and the ribeye needed for the weight. Base 600 needs 11.0 and for every 100 lb change in HCW the ribeye area needed changes 1.2 sq. in. Example: Actual REA= 15.6 HCW= 725 15.6 – 12.5 = 3.1 (3.1 x.3)=.93 REA adjustment = -0.93

35. To estimate REA Live

36. Yield Grade Basics 1.Fat Thickness – 12 th Rib 2.Rib Eye Area to Hot Carcass Weight adj. 3.Kidney, Pelvic & Heart Fat

37. KPH Step 1. Estimate the KPH fat as a % of the Carcass. Do this by estimating the # of lbs. and dividing by HCW. Estimate lbs. of fat by estimating the # of softballs of fat are present. 1 softball weighs about 1 lb. Step 2. Minus the percentage from the base (3.5%) and then for every 0.5% change in KPH you adjust 0.1 to the Final Yield Grade. Example: HCW = 725Lbs. of KPH = 36.25 lbs 36.25/725= 5%5% - 3.5% (base)= 1.5 %1.5/.5 = 3 3 x.1 =.3 KPH adjustment + 0.3 to the Final Yield grade

38. KPH of Live Animal

39. Step 1. Fat thickness FT= 0.6 0.6/0.1 = 6 6 x 0.25 = 1.5 adjustment 2.0 + 1.5 = 3.5 PYG Step 2. Ribeye to HCW Actual REA= 15.6 HCW= 725 15.6 – 12.5 = 3.1 (3.1 x.3)=.93 REA adjustment = - 0.93 Step 3. KPH HCW = 725Lbs. of KPH = 36.25 lbs 36.25/725= 5%5% - 3.5% (base)= 1.5 % 1.5/.5 = 3 3 x.1 =.3 KPH adjustment = + 0.3 FINAL YIELD GRADE= 2.87 3 step method Summary Carcass

40. Step 1. ESTIMATE Fat thickness FT= 0.6 0.6/0.1 = 6 6 x 0.25 = 1.5 adjustment 2.0 + 1.5 = 3.5 PYG Step 2. Determine Muscling and Adjust accordingly. For heavier muscled animals subtract from the Yield Grade. For lighter muscled animals add to the yield grade. Step 3. KPH Usually an animal will have 2.0 -3.5 % the fatter the animal normally the more KPH. Adjust after a guess. Or use a standard of – 0.2 adjustment. 3 step method Summary LIVE

41. Adopted from: R.E. Taylor. Scientific Farm Animal Production. 4 th Ed. 1992. Yield Grade 2

42. Adopted from: R.E. Taylor. Scientific Farm Animal Production. 4 th Ed. 1992. Yield Grade 5

43. Yield Grade 2 Yield Grade 5

44. Yield Grade 2 Yield Grade 5

45. Yield Grade 2Yield Grade 5

46. Yield Grade 2 Yield Grade 5

47. Beef Carcass Terminology Muscling Ribeye Round Sirloin Rib Chuck Quality Marbling, color Texture, firmness Trimness Ribeye Round Sirloin Short loin Loin edge Rib Chuck KPH Cod/udder

49. Sample Questions on Beef Carcasses 1.Largest Ribeye? 2.Highest Marbling Score? 3.Trimmest over lower rib 4.Between __ & ___ displayed the most fat over the round? 5.Darkest Lean? 6.Plumpest Round? 7.Which carcass was displayed trimness, muscling and quality to the highest degree? 8.Between __& __ had the highest degree of marbling? 9.Which was the fattest opposite the ribeye? 10.Which carcass was the trimmest?

50. Beef Value Determination

51. Carcass Cost Basis Carcass cost basis is the price per cwt of carcass necessary to realize the same amount of money that was paid for the live animal. Carcass cost basis = (Live price per cwt / Dressing %) x 100

52. Example: Live Price = $83 / cwt Dressing Percentage = 62% ($83 / 62) x 100 = $133.87 / cwt carcass cost basis

53. Simple Carcass Cost Basis Rail Pricing Grid This method is used by plants when cattle are sold on the rail or by there carcass merit.

55. Maximum Price Basis The method used to determine how much should be paid for the live animal based on: 1)The potential revenue to be received for the carcass. 2)The potential revenue to be received for the by-products, and 3)The cost of converting the live animal into a carcass and by-products.

56. Example: Given USDA Choice Carcass = $105/cwt USDA Select Carcass = $100/cwt USDA By-product Value = $8.18/cwt Slaughter cost = $30 per head A 1250 pound steer that is estimated to grade USDA Choice and dress 63%.

57. 1250 x 0.63 = 787.5 lbs of carcass 787.5 x 105/cwt = $826.88 carcass revenue 1250 x 8.18/cwt = $102.25 by-product revenue

58. $826.88 estimate carcass revenue +$102.25 estimated by-product revenue -$30 slaughter cost $901.13 estimated income minus expenses $901.13 / 1250 lb. Live weight = $72.09/cwt Maximum Price Basis

59. Carcass Pricing Grid ($/cwt) for March : Yield Grade Prime Premium Choice ChoiceSelectNo-Roll 1.5+$27.73+$13.08+$11.35+$9.25+$8.60 2.5+$20.04+$6.31+$4.69+$2.72+$2.12 3.5+$14.28+$1.53$94.11 Base ($1.88)($2.45) 4($15.00) 5($20.00)

60. Terms Choice/ Select Spread Yield Grade Spread

61. By-product value = $ 7.73 / cwt Live Weight Kill Cost = $ 30.00 / head Fabrication Cost = $ 65.00 / head

62. Acceptable Carcass Weights = 550 to 950 lbs.

63. Determine the adjusted carcass and live values ($/cwt) for each of the following: 1)1100 lb., Dress = 64.0%, Choice- YG 2.5 Drop Credit = $7.73/cwt x (1100 lb./100) = $85.03 Carcass Weight = 1100 lb. X.64 = 704 lb. Carcass Price = $ 94.11 (Ch3.5) + $4.69 (Ch.2.5) = $98.80/cwt Adjusted Carcass Value = $98.80 x (704/100) + $85.03 (Drop) - $95.00 (Kill & Fab Cost) = $685.58 / (704/100) = $97.38/cwt Carcass Weight Adjusted Live Value = $685.58 / (1100/100) = $62.33 / cwt Live Weight

64. 2)1100 lb., Dress = 64.0%, Select YG 2.5 Drop Credit = $7.73/cwt x (1100 lb./100) = $85.03 Carcass Weight = 1100 lb. X.64 = 704 lb. Carcass Price = $94.11 (Ch.3.5) + $2.72 (Se2.5) = $96.83/cwt Adjusted Carcass Value = $96.83 x (704/100) + $ 85.03 (Drop) - $95.00 (Kill & Fab Cost) = $671.71 / (704/100) = $95.41/cwt Carcass Weight Adjusted Live Value = $671.91 / (1100/100) = $61.06 / cwt Live Weight

65. 3) 1200 lb., Dress = 64.5%, Prime YG 1.5 Drop Credit = $7.73/cwt x (1200 lb./100) = $92.76 Carcass Weight = 1200 lb. X.645 = 774 lb. Carcass Price = $94.11 (Ch3.5) + $27.73 (Pr1.5) = $121.84/cwt Adjusted Carcass Value = $121.84 x (774/100) + $92.76 (Drop) - $95.00 (Kill & Fab Cost) = $940.80 / (774/100) = $121.55/cwt Carcass Weight Adjusted Live Value = $940.80 / (1200/100) = $78.40 / cwt Live Weight