Live Beef Evaluation

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Live Beef Evaluation Pricing

• Kelly Bruns, Ph.D.
• South Dakota State University
• SDSU Beef 2020

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History

• 1916 Standards for U.S. grades developed
• 1924 Market classes and grades of dressed beef
  developed
• 1927 Voluntary grading specifications
• 1941 Adopted Prime, Choice, Good Comm., Utility,
  Cutter, Canner
• 1956 Commercial spilt by age into Standard
  Commercial
• 1965 Adopted standards for cutability Yield
  Grades
• 1973 Changed Bull grade to Bullock
• 1975 Elimination of conformation Changed Good
  to be leaner
• 1980 10 minute minimum required after ribbing
• 1987 U.S. Good to Select
• 1989 Only Quality or Yield Grade assigned No
  Rolls
• 1997 Select Grade restricted to A maturity
• B maturity - Standard

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History

• 1916 Standards for U.S. grades developed
• 1924 Market classes and grades of dressed beef
  developed
• 1927 Voluntary grading specifications
• 1941 Adopted Prime, Choice, Good Comm., Utility,
  Cutter, Canner
• 1956 Commercial spilt by age into Standard
  Commercial
• 1965 Adopted standards for cutability Yield
  Grades
• 1973 Changed Bull grade to Bullock
• 1975 Elimination of conformation Changed Good
  to be leaner
• 1980 10 minute minimum required after ribbing
• 1987 U.S. Good to Select
• 1989 Only Quality or Yield Grade assigned No
  Rolls
• 1997 Select Grade restricted to A maturity
  B maturity - Standard

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History
1900s
1930s
1940s
1950s
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History
Early 1960s
Late 1960s
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History
Early 1960s
Late 1960s
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History
1970s
1980s
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History
1990s
2000
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History
1990s
2000
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National Beef Quality Audits
USDA NBQA NBQA NBQA 1974 1991 1995 2000
Carcass wt 679 760 748 787 Fat thickness,
in. .62 .59 .47 .49 REA, sq
in 11.8 12.9 12.8 13.1 USDA Yield Grade
3.4 3.2 2.8 3.0 Quality Grade Ch- Sel86
Sel79 Sel85 Prime Choice 75 55 48 51
YG 1 2s 30 44 58 49.2
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Market Animal Evaluation

• USDA Grading Service
• Livestock Grain Market News Branch
• Voluntary
• Paid for by the packer
• USDA Grades
• Yield grade measures the lean to fat ratio
• Quality measures the palatability of the meat

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Evaluation Factors

• Yield Dressing Percent
• Yield Yield Grade
• Palatability Quality Grade

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Dressing Percent
Dressing Percent Hot Carcass Weight
Live Weight
X 100
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Dressing Percent
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Dressing Percent

• Fill
• - Hide
• Mud

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Dressing Percent

• Fill
• Sex
• Fatness
• Muscle

• Fill
• - Hide
• Mud

Avg 62.5 1288 1000 - 1505
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Dressing Percent
Live Price Dressing Carcass Price 80.00
61 131.15 80.00 65
123.10
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Dressing Percent
Live Price Dressing Carcass Price 80.00
61 131.15 80.00 65
123.10
Carcass Price Dressing Live Price
127.00 61.0 77.47 127.00
65.0 82.55 127.00 62.5
79.40
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Market Cattle Evaluation

• USDA Yield Grade
• Measures cutability or the amount of lean to fat
• Classified from 1 (High Lean) to 5 (high fat)

Boneless Trimmed Yield Grade Retail
Cuts 1 53.5
2 51.2 3 48.9 4 46.6
5 44.3
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Yield Grade Factors

• HCW Weight
• 12th Rib back fat
• Ribeye area
• Internal fat kidney, pelvic, heart fat

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Yield Grade Factors

• HCW Weight
• 12th Rib back fat
• Ribeye area
• Internal fat kidney, pelvic, heart fat

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USDA Yield Grade

• Step 1
• Determine back fat starting point for
  determining Y.G.

12th rib depth inches Preliminary Y.G.
.0 2.0 Most desirable .2 2.5
.4 3.0 .6 3.5 .8 4.0 1.0 4.5
Least desirable
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USDA Yield Grade

• Step 1
• Determine back fat starting point for
  determining Y.G.

12th rib depth inches Preliminary Y.G.
.0 2.0 Most desirable .2 2.5
.4 3.0 .5 3.3 .6 3.5
.8 4.0 1.0 4.5 Least desirable
Avg .50 Currently Avg .4
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USDA Yield Grade

• Step 2
• Determine Muscling
• Average muscling 1.1 sq. inches of REA per 100
  lbs live wt.
• 1200lb steer should have 13.2 sq. in. REA
• Greater than 1.1 sq. in. then Lower the Y.G.
  (Desirable)
• Less than 1.1 sq in. then Increase the Y.G.
  (Undesirable)
• For every 1 difference .3 from PYG

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USDA Yield Grade

• Step 2
• Determine Muscling

HCW Required REA 600 11.0 700 12.2
800 13.4 900 14.4
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USDA Yield Grade

• Step 3
• Determine Internal Fat (K.P.H. fat)
• Most cattle have 2.5 internal fat.
• If cattle have less than 3.5 internal fat then
  lower Y.G. by .2 for every 1 decrease

KPH, Adjustment 4.0 .1 3.5
none 3.0 -.1 2.5 -.2
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Quality Grade Evaluation

• USDA Quality Grade
• Estimates the palatability (eating quality) of
  the meat
• Factors to consider when estimating Q.G.
• Maturity Young to Old 5 classifications
• Marbling 10 degrees of marbling

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USDAQuality Grades
Prime
Choice
Select
Standard
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30
96
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Age
72
2.5
3.5
6
8
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Practice Comparisons
Heifer 1365 lbs
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Practice Comparisons
Steer 1350 lbs
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Cattle Maturity

• Past
• Ossification of vertebrae
• Post-BSE
• Dentition to identify cattle 30 mo of age
• FSIS as set the following
• Cattle with a full set of the first incisors are
  24-30 mo
• Cattle with at least one of the second set of
  incisors are considered 30 mo of age or older

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2.5 years of age
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?
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788 lbs Select Y.G. 2.5
675 lbs Choice - Y.G. 3.5
838 lbs Select - Y.G.1.6
730 lbs Select - Y.G. 1.5
891 lbs Choice O Y.G. 4.0
750 lbs Choice- Y.G. 2.5
820 lbs Select - Y.G. 2.2
850 lbs Select Y.G. 2.3
960 lbs Prime Y.G. 4.0
620 lbs Prime - Y.G. 3.3
990 lbs Choice- Y.G. 3.0
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USDA Certified or Verified

• Certified - 52
• Specifications ie. CAB
• Company requests Government Issues
• Reviewing requirements www.ams.usda.gov
• Process Verified - 4 programs
• Process (origin, handling, carcass cuts, ect.)
• Simple - Nolan Ryans Tender Aged Beef

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Alliances/Branded Beef Programs

• 52 Programs Currently
• Four Categories
• Breed Associated
• Commercial Beef Carcasses
• Natural/Implant-Free
• Vertical Integrated Beef Cooperatives

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Breed Breed Associated

• Angus
• CAB
• Supreme Angus Beef
• Angus Alliance
• Hereford
• Limousin
• Lauras Lean
• Nebraska Lean Limousin

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Beef Breed Associated

• Dominated by British breeds
• of 52 programs 40 Angus based

Provided by USDA Marketing Regulatory Programs
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Commercial Beef

• Western Beef Alliance
• Montana Beef Network
• Fewer Specifications
• Pay fee for data

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Natural/Implant Free

• Lauras Lean 20-30,000
• Colman Natural Beef
• Maverick Ranch 30-40,000

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Vertical Integrated Alliance

• Northern Plains Premium Beef
• U.S. Premium Beef
• Share holders
• Future Beef
• Selected producers
• Ranchers Renaissance
• Share profit or loss

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Current Methods of Marketing

• Live Price Bids
• Carcass Price Bids In the Beef
• Grade Yield Grid Pricing
• Formula Pricing

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CERTIFIED ANGUS BEEF ProductSold by Program
Licensees
Fiscal Year (October 1 - September 30)
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The Big ThreesGrids

• IBP Real Time Market Value RTMV
• Monfort Cutability Quality
• Nebraska average for base - Adjusts to Choice Y3
• Excel - Many Breed specific
• Angus based on Quality no Premium for Sel Y1Y2
• Angus Gene Net, Angus Alliance etc.
• Sterling Silver, Iowa Quality Beef, Nebraska
  Corn Fed
• Ranchers Registry / Ranchers Renaissance

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Figure 1. Quality Premiums and Discounts
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I
II
III
IV
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Figure 2. Cutability Premiums and Discounts
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Figure 3. Carcass Weight Discounts
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Estimating Yield Grade

• Visually evaluate animal for differences in fat
  and muscle
• Shape

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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
x
x
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Visual Indicators of Finish
1100 lbs
1030 lbs
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
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Visual Indicators of Finish
BF 1.50 REA 10.6 YG 6.0
BF .70 REA 13.5 YG 3.3
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Visual Indicators of Finish
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Practice Comparisons
Heifer 1365 lbs
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Practice Comparisons
Steer 1350 lbs
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Practice Comparisons
Heifer 1365 lbs
DP - 60.6 HCW - 828 Back fat - .90 (PYG
4.3) RREA 13.7 AREA - 10.8 (add .9) KPH
fat 3.5 (no adjustment) Final Y.G. 5.2
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Practice Comparisons
Steer 1350 lbs
DP - 64.0 HCW - 864 Back fat - .30 (PYG
2.7) RREA 14.2 AREA 16.2 (subtract
.6) KPH fat 2.5 (subtract .2) Final Y.G. 1.9
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What is in a pen of cattle?
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How Much Variation Really Exists?
95 NBQA Mean STD HCW
759 94 Fat .6 .24 REA 12.9
1.6 YG 3.16 .91 Marb 525 106
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mean
1 SD 68, 2 SD 95 , 3 SD 99
From D. M. Marshall
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Frame Size
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How Much Variation Really Exists?
Blacks Colored Mean STD Mean
STD HCW 738 743 Fat .59 .59 REA
12.6 12.7 YG 3.2 3.3 Marb 560 539

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How Much Variation Really Exists?
Blacks Colored Mean STD Mean
STD HCW 738 66 743 68 Fat .59 .15 .59 .
14 REA 12.6 1.0 12.7 1.2 YG
3.2 .6 3.3 .6 Marb 560 87 539 78
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How Much Variation Really Exists?
Blacks Colored Mean STD Mean
STD HCW 738 66 743 68 Fat .59 .15 .59 .
14 REA 12.6 1.0 12.7 1.2 YG
3.2 .6 3.3 .6 Marb 560 87 539 78
Outliners No. No. - YG 4s 10 6.0
6 4.0 - Weight 0 0 2 1.3 Total
10 6.0 8 5.0
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Fitting Cattle to a Grid
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• Grid 1 Grid 2 P D
• Base 112 117 112
• Prime 11.00 3.00 5.5
• Premium Ch 10.00 - 2.58
• Choice - - -
• Select -7.00 -11.00 -8.25
• Standard -28.00 -30.00 -18.25
• YG 1 6.50 2.00 2.42
• YG 2 2.50 3.00 1.00
• YG 3 - - -
• YG 4 -12.00 -12.00 -15.67
• YG 4 -11.00 -12.00

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• Mean
• N 164
• Live 1203
• HCW 770
• BF .51
• REA 12.35
• YG 3.2
• Marb Sm40
• Choice 64
• YG 1,2s 37
• Outliers hd 1

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• Mean Breed A Breed B
• N 159 80 70
• Live 1203 1183a 1230b
• HCW 770 754a 790b
• BF .51 .54a .47b
• REA 12.35 12.0a 12.8b
• YG 3.2 3.3a 3.0b

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• Mean Breed A Breed B
• N 159 80 70
• Live 1203 1183 1230
• HCW 770 754 790
• BF .51 .54 .47
• REA 12.35 12.0 12.8
• YG 3.2 3.3 3.0
• Marb Sm40 Sm60 a Sm10 b
• Choice 64 82 41.4
• YG 1,2s 37 31.5 44.3
• Outliers hd 1 1 std 0

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• Grid 1 Grid 2 P D
• All 113.68 113.61 110.49

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• Grid 1 Grid 2 P D
• All 113.68 113.61 110.49
• Breed A 115.23 115.64 112.02
• Breed B 111.70 111.03 108.54

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Value - /hd Priced on the Same Grid

• HCW /cwt Value
• All 770 113.68 875.15
• Breed A 754 115.23 869.36
• Breed B 790 111.70 882.52

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Questions to Ask

• Do my cattle fit what the gridor program is
  asking for?
• What are the costs?
• How much useful data do I receive?

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The Future of Markets

• Advanced technology
• Grid Pricing, alliances, cooperatives will
  increase.
• Negotiation of cattle terms of trade will
  increase significantly.

Wayne Purcell, 1997
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The Future of Cattle Evaluation
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Ultrand Non-Conf Rail Non-Conf 16 65
145 145 157 211 211 229 229 271
279 279 349 377 6 hd 10 of
pop. 434 449 458 465 466 467 468 470 482
501 518 528 915 21 hd or 34 of pop.
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Cattle Marketing

• 65 participants
• 11 lots of cattle
• Bid on a lot you would like to purchase
• 6 highest bids will get cattle
• Market Plan
• Incorporate plan and marketing opportunities
• Included method of sale
• Carcass wt
• Packer Grid Further Discussion next week
• Alliance
• Base Price 82.00 breakeven

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Cattle Marketing

• Angus
• Angus
• Herefords
• Black Baldies
• Limousin x Angus calfhood implanted
• Red Angus
• Red Angus x Continental cross cows
• Simmental x Red Angus cross cows
• Charolais x Angus
• Limousin sired Non-implanted antibiotic free
• Crossbred 70 colored 30 blacks

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Marketing Methods

• Packer Grids (Tyson and Swift)
• Cutability based grid
• Quality (CAB type grid)
• Excel Angus America
• Black Angus
• Red Angus
• Certified Hereford Greater Omaha
• Lauras Lean

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Lot 1

• Angus
• Top carcass oriented AI bulls and sired cows
• History 85 choice 55 CAB, 10 YG4s
• Non implanted
• Med Large Frame

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Lot 2

• Angus
• Angus bulls some carcass EPDs
• No History
• No Implants
• Med Frame

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Lot 3

• Hereford
• Hereford x Hereford
• Carcass oriented bulls for the past 5 years
• No history
• Med Frame

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Lot 4

• Black Baldy
• Top Hereford bulls x Commercial Angus cows
• No history
• Med Frame

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Lot 5

• Blacks
• Limousin and Angus Bulls X Commercial Angus
• 65-75 choice
• Implanted

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Lot 6

• Red Angus
• Top Red Angus Genetics on selected cows
• History 85 choice
• Non Implanted

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Lot 7

• Red Angus sired
• No history

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Lot 8

• Red Cross Calves
• Simmental bulls X Red Angus cross cows
• Excellent growth and production data
• Little carcass data but positive
• Implanted

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Lot 9

• Char cross calves
• Charolais Bulls X Angus and CharxAngus cows
• Reputable purebred supplier
• No data
• Non implanted

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Lot 10

• Limousin
• Limousin bulls on Limousin x Angus cows
• No antibiotics or Implants
• Previously sold to Lauras Lean

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Lot 11

• 70 colored 30 blacks
• Charolais bulls on crossbred cows
• No History
• Implanted

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