Beef Quality Grading, Yield Grading and Pricing

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

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

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

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

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

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)

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

Relationship between tenderness and USDA maturity scores

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

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

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

Determining Lean Maturity

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

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

USDA Quality Grades

Additional Factors that Affect Quality Grades Ideal Discounted

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%

Quality Grade Distribution in 1991 and 1995

Additional Factors that Affect Value

USDA Yield Grades

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

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

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

USDA Yield Grade USDA YG%BCTRC % or More % % % 45.4% or Less %BCTRC = – 5.784(Adj.Fat) – 0.462(KPH) (REA) – (HCW)

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

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 Example: FT= /0.1 = 6 6 x 0.25 = 1.5 adjustment = 3.5 PYG

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

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= ? = ? (diff. in REA x.3)= ??

HCWREAHCWREA Ribeye to HCW adjustments

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= – 12.5 = 3.1 (3.1 x.3)=.93 REA adjustment = -0.93

To estimate REA Live

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

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 = lbs 36.25/725= 5%5% - 3.5% (base)= 1.5 %1.5/.5 = 3 3 x.1 =.3 KPH adjustment to the Final Yield grade

KPH of Live Animal

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

Step 1. ESTIMATE Fat thickness FT= /0.1 = 6 6 x 0.25 = 1.5 adjustment = 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 % 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

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

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

Yield Grade 2 Yield Grade 5

Yield Grade 2 Yield Grade 5

Yield Grade 2Yield Grade 5

Yield Grade 2 Yield Grade 5

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

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?

Beef Value Determination

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

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

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.

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.

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%.

1250 x 0.63 = lbs of carcass x 105/cwt = $ carcass revenue 1250 x 8.18/cwt = $ by-product revenue

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

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

Terms Choice/ Select Spread Yield Grade Spread

By-product value = $ 7.73 / cwt Live Weight Kill Cost = $ / head Fabrication Cost = $ / head

Acceptable Carcass Weights = 550 to 950 lbs.

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 = $ (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) = $ / (704/100) = $97.38/cwt Carcass Weight Adjusted Live Value = $ / (1100/100) = $62.33 / cwt Live Weight

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) + $ (Drop) - $95.00 (Kill & Fab Cost) = $ / (704/100) = $95.41/cwt Carcass Weight Adjusted Live Value = $ / (1100/100) = $61.06 / cwt Live Weight

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 = $ x (774/100) + $92.76 (Drop) - $95.00 (Kill & Fab Cost) = $ / (774/100) = $121.55/cwt Carcass Weight Adjusted Live Value = $ / (1200/100) = $78.40 / cwt Live Weight