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