Marketing Systems For Livestock and Poultry

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Marketing Systems For Livestock and Poultry

• Objective Define cutability, degree of lean,
  marbling, and quality features used to market
  beef and swine

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What is Cutability?

• The term cutability describes the proportion of
  an animal which is saleable meat.
• Dressing percentage
• Percentage of the live animal which forms its
  carcass
• Saleable meat yield or retail yield
• Percentage of the carcass which is saleable meat.

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What is Cutability?

• No two animals are the same
• Cutability varies widely between individual
  animals
• This variation affects financial returns to
  producers, wholesalers and retailers.

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High Cutability
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High Cutability

• Wide stance
• Convex shoulders and hindquarters
• Trim brisket
• Wide over the shoulders
• Convex rump

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Low Cutability

• Animals with low cutability do not look muscular,
  indicating a low ratio of muscle to bone.
• a narrow stance, especially through the lower
  hindquarters
• a prominent gut that is the widest point of the
  animal when it is viewed from behind
• flat forearms and shoulders
• narrow, poorly developed loins sloping down from
  the backbone.

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Low Cutability

• Animals that are overfat and have an uneven
  distribution of fat have
• lumpy deposits of fat in the brisket flank and
  tailhead
• a smooth appearance
• a level underline
• a deep body
• flatness over the top of the rump
• a smooth tail setting
• a soft, spongy feel

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Grading Meat

• Beef and Swine are graded using
• Quality Grades
• The worthiness of the meat produced
• Tenderness, juiciness, and flavor
• Yield Grades
• The amount of meat produced from a specific
  carcass

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Grading Meat

• 1. Quality Grades
• Determined by the class or kind of animal (steer,
  heifer, cow, bull), age or maturity, firmness and
  marbling of the carcass.

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Quality Grades

• Prime
• Choice
• Select
• Standard and Commercial
• Utility, Cutter, and Canner

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Grading Meat

• Prime grade
• Produced from young, well-fed beef cattle. It has
  abundant marbling and is generally sold in
  restaurants and hotels
• Choice grade
• High quality, but has less marbling than Prime

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Grading Meat

• Select grade
• Very uniform in quality and normally leaner than
  the higher grades
• Fairly tender, but, because it has less marbling,
  it may lack some of the juiciness and flavor of
  the higher grades

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Grading Meat

• Standard and Commercial grades
• Frequently are sold as non-graded or as "store
  brand" meat
• Utility, Cutter, and Canner grades
• Are seldom, if ever, sold at retail but are used
  instead to make ground beef and processed products

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Grading Meat

• 2. Yield grade
• Percentage of the carcass that is boneless,
  closely trimmed retail cuts from the round, loin
  rib, and chuck
• Grades 1, 2, 3, 4, 5

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Grading Meat

• 3. Marbling
• Intermingling of fat among the muscle fiber
• Measured in the ribeye between the 12th and 13th
  rib

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Grading Meat

• Swine
• 1. Quality grade is determined by quality of lean
  meat and yield.
• 2. Quality of lean is determined by firmness of
  lean, firmness of fat, and distribution of
  external finish (fat).
• 3. Yield is evaluated by thickness of backfat and
  degree of muscling.
• 4. Degrees of muscling are thick, average and
  thin.

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Grading Meat

• Swine (continued)
• 5. United States No. 1 hog must have at least
  average muscling.
• 6. Thick muscling helps offset backfat thickness.
• 7. Cutability is the yield of closely trimmed,
  boneless retail cuts that come from the major
  wholesale cuts of carcass.
• 8. United States No. 1 should yield 60.4 or
  higher.

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Pop Quiz

• 1) Name the two types of grading for cutability
• 2) What are the degrees of muscling in swine?
• 3) What places highest, Choice, Select, or
  Commercial?
• 4) Where is marbling assessed on each carcass?
• 5) How are quality grades determined?

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Cuts of Beef and Swine

• Objective
• Identify the wholesale and retail cuts of beef
  and swine

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Cuts of Beef

• Wholesale
• High value
• loin, rib, rump, round
• Low Value
• chuck, brisket, flank, plate or navel, shank

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Cuts of Beef
Draw a diagram in your notebook labeling the
wholesale cuts of beef

• loin
• rib
• rump
• round
• chuck

• brisket
• flank
• plate or navel
• shank

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Wholesale Cuts of Beef
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Cuts of Beef

• Retail
• High Value
• ribeye from the rib
• tenderloin from the loin
• sirloin from the loin
• rump from the rump
• T-bone form the loin

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T-Bone
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Ribeye
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Tenderloin
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Cuts of Beef
Ribeye
Tenderloin
Sirloin
T-Bone
Ground Beef
Stew Beef
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Cuts of Pork

• Wholesale
• High Value
• loin, ham, picnic shoulder, Boston shoulder or
  butt
• Low Value
• spareribs or belly, feet, jowl, backfat,
  spareribs or side, bacon

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Wholesale Cuts of Pork
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Cuts of Pork

• Retail
• High Value
• ham, loin, tenderloin, pork chops, Boston butt,
  picnic ham (shoulder)
• Low Value
• hocks, spareribs, belly, bacon, jowl, fatback

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Cuts of Pork
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Cuts of Pork
Pork Chops
Boston Butt
Picnic Shoulder
Country Ham
The Ham, Loin, Picnic Shoulder and Boston Butt
make up 75 of the retail value of the carcass
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Poultry Carcass Evaluation

• Objective Define terminology used in poultry
  carcass selection and evaluation

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Why Grade Poultry Carcasses?

• To insure quality before it is sold
• Prevent the selling of an unwholesome product

• Did you know?
• Grading is voluntary and paid for by the meat
  packer?

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Grading Poultry Carcasses

• USDA Grades indicate quality not sanitation
• Ready-to-cook means that certain parts have been
  removed
• head
• feet and feathers
• blood
• viscera (soft internal organs)

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What are the Grades?

• Poultry Carcass Grades
• Grade A
• Sold in stores
• Grade B
• Often not a grade sold in stores
• Grade C
• Usually used for processing into other food
  products

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Evaluation Factors
Poultry carcasses are graded on the following
factors

• confirmation
• fleshing
• fat covering
• exposed flesh
• discoloration

• disjointed and broken bones
• missing parts
• freezing defects

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Evaluation Factors

• Confirmations
• normal breastbone, back, leg and wings
• Fleshing
• well fleshed or muscled is ideal
• Fat covering
• well covered is ideal

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Evaluation Factors

• Exposed Flesh
• (2 pound to 6 pound birds)
• Grade A
• Breast and leg can not have over 1/4 inch
• Other parts can have a maximum of 1 and 1/2
  inches

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Evaluation Factors

• Exposed Flesh (continued)
• Grade B
• No more than 1/3 of the total flesh of each
  particular part can be exposed
• Meat yield cannot be affected (i.e. no cuts into
  the meat)
• Grade C
• No limit

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Evaluation Factors

• Disjointed and broken bones
• (2 pound to 6 pound birds)
• Grade A
• 1 disjointed and no broken
• Grade B
• 2 disjointed and no broken or 1 disjointed and 1
  broken non-protruding

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Evaluation Factors

• Disjointed and broken bones
• (continued)
• Grade C
• No limit
• Protruding bones automatic Grade C

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Evaluation Factors

• Missing Parts
• (2 pound to 6 pound birds)
• Grade A
• Wing tips and tail (removal of the preen gland
• Grade B
• Wing tips to the 2nd wing joint
• Back area not wider than base of tail and
  extending half way between the base of tail and
  hip joints

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Evaluation Factors

• Missing Parts
• (continued)
• Grade C
• Wing tips, wings and tail
• Back area not wider than the base of tail
  extending to area between the hip joints

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What Grade is this?
Grade A No Defects
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What Grade is this?
B Grade Back is cut out halfway between the base
of the tail and the hip joints
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What Grade is this?
C Grade. More than 1/3 of flesh exposed on breast
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What Grade is this?
B Grade. Parts of wing removed beyond the second
joint
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What Grade is this?
C Grade. Entire wing removed
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What Grade is this?
C Grade. Over 1/3 of the drumstick flesh is
exposed
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What Grade is this?
C Grade Trimmed more than halfway between base of
tail and hip joints
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What Grade is this?
C grade Protruding broken bone in wing tip
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Marketing Livestock and Poultry

• Objective Describe the methods used to market
  livestock and poultry

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Methods of Marketing

• Terminal Markets
• Central markets on public stockyards
• Livestock are consigned to a commission firm to
  bargain with buyers for a certain fee

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Methods of Marketing

• Auction Markets
• Public bidding
• Sell to the buyer that bids the highest

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Methods of Marketing

• Direct selling
• No middle person
• Producer sells straight to the buyer
• No commission or fees

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Methods of Marketing

• Electronic marketing
• auctioning on-line using computers
• Futures marketing and hedging
• legal document
• calls for the delivery in the future
• prices are locked in to a futures price

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Vertical Integration

• Definition
• Two or more steps of production, marketing and
  processing are linked together usually by a
  contract between the producer and feed
  manufactures or between producers and processors
  including all three

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Vertical Integration
Holly Farms, Case, Purdue
Poultry Farmer or producer
Grain producer
Hatchery
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Vertical Integration

• About 99 of all broilers and a very high
  percentage of turkeys, laying hens and swine are
  grown and marketed through vertical integration
  contracts

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Animal Welfare and Rights

• Objective Define animal welfare and rights issues

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Animal Welfare

• Humane treatment of animals
• Most animal producers and researchers believe in
  animal welfare
• support animal nutrition
• oppose cruel treatment

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Animal Welfare

• Scientific information should be the basis for
  decisions, laws, and regulations related to
  animal welfare
• It is difficult to assess animal comfort because
  they do not talk and there are no universally
  accepted measures to use

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Animal Rights

• Animal should not be used by humans
• The issues of animal welfare and animal rights
  date back thousands of years to the ancient Greeks

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Welfare vs Rights
Welfare
Rights

• No use whatsoever
• Radical activities including violence
• Usually vegetarians

• Involves good treatment of animals
• Less radical
• Supported by most animal producers and
  researchers