September 2009 Articles

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Changes in Quality Grading

Changes in Quality Grading Ross Pruitt and Jim Robb[1] Changes in production agriculture have been coming thick and fast the past few years with rising input costs, regulatory changes, and tighter margins to name a few things livestock producers are facing. Lack of demand has put a temporary ceiling on cattle prices as consumers adjust their spending habits during the current economic challenges this country is facing. As a result, the Choice-Select spread has been very narrow the past few weeks to the point of being inverted. Select cuts of meat have retained their value more readily than Choice due to consumers eating out less frequently. Supplies of Choice beef have also been increasing, due in part to favorable winter feeding conditions in the High Plains (Texas Panhandle to Nebraska Panhandle) and feeding cattle to heavier slaughter weights. Starting last year, the percentage of carcasses that were graded Choice started to increase. The objective quality grading system has not been fully implemented in plants yet, but this new technology has already resulted in an increase in the percentage of carcasses graded Choice. Improvements made to grading system as a result of education, research, and evaluation has equipped graders to more effectively identify Choice carcasses. A similar result was observed when objective yield grading was being developed a few years ago. The Livestock Marketing Information Center feels that the change in percentage of carcasses grading Choice is permanent, just like what happened for yield grades. Consumers have repeatedly expressed their desire for a consistent dining experience with regards to beef. Choice beef is typically served at restaurants and the improvement of the quality grading system will hopefully be one step to a more consistent dining experience for consumers. Consumer concerns about nutrition and their budget will affect consumption patterns, but the improved quality grading system may increase the value for beef. Any additional value that may result from these changes will be passed up the supply chain to those entities that add the value to the animal. With Permission LSU AgCenter, 1 Mr. Robb is the Director of the Livestock Marketing Information Center