Beef Quality Grading, Yield Grading and Pricing

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Beef Quality Grading, Yield
Grading and Pricing
YG & QG
Dressing %
$66/cwt
$109/cwt
Slaughter
CH $161.32/cwt
SE $154.82/cwt
Fab/Processing
Credit Items:
Fat $8.50/cwt
Bone $5/cwt
By-Products ($/cwt)
Dressing Percentage:
Hot Carcass Weight, lb
Live Weight, lb
J. D. Tatum, 2000
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.
Graded
Not Graded
•Heifer
•Steer
•Cow
•Bullock
•Bull
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
Shear Force Values
Relationship between tenderness and
USDA maturity scores
A
B
C
Maturity
D
E
Physiological Maturity vs Chronological
Maturity
• The physiological maturity of the carcass is
an estimate of the actual chronological age of
the animal
USDA Maturity Score
A
B
C
D
E
Estimated chronological age
9 to 30 months
30 to 42 months
42 to 72 months
72 to 96 months
96 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 12th
13th rib interface
Skeletal Maturity
A
B
C
D
E
Sacral
Distinct
separation
Some
separation
Fused
Fused
Fused
Lumbar
No
Partial
ossification ossification
Mostly
ossified
Ossified
Ossified
35-70%
70-90%
90% +
Thoracic*
0-10%
10-35%
*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 C20
•Cannot move more than 100
degrees from skeletal
Marbling
Slight00
Small00
Modest00
Moderate00
Slightly Abundant00
Moderately Abundant00
USDA Quality Grades
Additional Factors that Affect Quality Grades
Ideal
Discounted
Odds of an Unpleasant Eating
Experience
USDA Quality
Grade
Odds of Having an % Steers/Heifers in
Unpleasant Eating
National Consist
Experience
(NBQA, 2000)
Prime
3% (1 in 33)
2%
Upper 2/3 Choice
10% (1 in 10)
17%
Low Choice
16% (1 in 6)
32%
Select
27% (1 in 4)
42%
Standard
50% (1 in 2)
7%
Quality Grade Distribution in
1991 and 1995
47
50
37
40
36 37
30
%
NBQA 1995
18
20
NBQA 1991
11
10
5 6
1
2
0
Standard
Select
Low
Choice
Upper 2/3
Choice
Prime
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
YG & QG
Dressing %
$66/cwt
$109/cwt
Slaughter
CH $161.32/cwt
SE $154.82/cwt
Fab/Processing
Credit Items:
Fat $8.50/cwt
Bone $5/cwt
By-Products ($/cwt)
Dressing Percentage:
Hot Carcass Weight, lb
Live Weight, lb
J. D. Tatum, 2000
X 100
USDA Yield Grades
Yield/Cutability estimates are
determined using four criteria
– Hot Carcass Weight, lbs
– Adjusted Fat Thickness, in.
– Ribeye Area, in2
– % KPH
USDA Yield Grade
%BCTRC =
51.34 – 5.784(Adj.Fat) – 0.462(KPH) + 0.740(REA) – 0.0093(HCW)
USDA YG
%BCTRC
1
52.3 % or More
2
52.3 - 50.0%
3
50.0 - 47.7%
4
47.7 - 45.4%
5
45.4% or Less
Yield Grade Basics
1. Fat Thickness – 12th Rib
2. Rib Eye Area to Hot
Carcass Weight adj.
3. Kidney, Pelvic & Heart
Fat
Step 1 Ft thickness 12th 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
Yield Grade Basics
1. Fat Thickness – 12th 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 12th and 13th 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)= ??
Ribeye to HCW adjustments
HCW
REA
HCW
REA
600
11.0
825
13.7
625
11.3
850
14.0
650
11.6
875
14.3
675
11.9
900
14.6
700
12.2
925
14.9
725
12.5
950
15.2
750
12.8
975
15.5
775
13.1
1000
15.8
800
13.4
HCW to REA
Step 1. Estimate the REA between the 12th and 13th 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
REA adjustment = -0.93
(3.1 x .3)= .93
To estimate REA Live
Yield Grade Basics
1. Fat Thickness – 12th
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 = 725
36.25/725= 5%
Lbs. of KPH = 36.25 lbs
5% - 3.5% (base)= 1.5 % 1.5/.5 = 3
3 x .1 = .3
KPH adjustment + 0.3 to the Final Yield grade
KPH of Live Animal
3 step method Summary Carcass
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 = 725
Lbs. 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 LIVE
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.
Yield Grade 2
Adopted from: R.E. Taylor. Scientific Farm Animal Production. 4th Ed.
Yield Grade 5
Adopted from: R.E. Taylor. Scientific Farm Animal Production. 4th Ed. 1992.
Yield Grade 2
Yield Grade 5
Yield Grade 2
Yield Grade 5
Yield Grade 2
Yield 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.
2.
3.
4.
Largest Ribeye?
Highest Marbling Score?
Trimmest over lower rib
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 = $133.87 / 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 = 787.5 lbs of carcass
787.5 x 105/cwt = $826.88 carcass
revenue
1250 x 8.18/cwt = $102.25 by-product
revenue
$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 =
$72.09/cwt Maximum Price Basis
Carcass Pricing Grid ($/cwt) for March :
Yield
Grade
Premium
Choice
Choice
Select
No-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)
Prime
4
($15.00) ($15.00) ($15.00) ($15.00) ($15.00)
5
($20.00) ($20.00) ($20.00) ($20.00) ($20.00)
Terms
• Choice/ Select Spread
• Yield Grade Spread
• By-product value = $ 7.73 / cwt Live
Weight
• Kill Cost = $ 30.00 / head
• Fabrication Cost = $ 65.00 / 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 = $ 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
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
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
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