AN ANALYSIS OF THE USE OF GRADES AND HOUSEBRAND LABELS IN THE RETAIL BEEF MARKET

The congruence of beef consumersÂ’ purchases with their stated preferences regarding internal fat content are examined. The role of U.S. Department of Agriculture (USDA) grades and housebrand labeling of beef in providing information to consumers is studied in the theoretical framework of search theory. The empirical results indicate that the current system of USDA grades and housebrand labels is not disseminating information regarding internal fat content effectively to consumers. Suggestions are made for providing consumers with better information and education necessary to increase congruence of expressed preferences regarding internal fat content and actual beef purchases.Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

Predicting Beef Palatability

The search for factors influencing the palatability of beef continues. The relative importance of variables in the USDA quality grading system that currently predicts acceptability and palatability has been questioned. The effect of marbling on palatability is one of the more controversial aspects. Marbling is one of the prime factors in determining the quality grade of a beef carcass and researchers have shown that other variables may play an equal or more important role influencing the eating quality of beef. The purpose of this study was to evaluate the accuracy of commonly-used predictors of palatability and to consider the possible influence of other carcass measures as predictors of palatability. Palatability, as defined in this study, was measured by the subjective taste panel scores for flavor, juiciness and tenderness. Tenderness mas measured objectively with the Warner-Bratzler shear instrument

VALUE OF ULTRASOUND-BASED PREDICTIONS OF CARCASS QUALITY GRADE

This paper addresses the quality and value of data derived from ultrasound technology. It attempts to determine whether or not ultrasound is a strong enough predictor of beef carcass quality grade to be an economical tool used to improve the current state of the beef industry.Marketing,

CONSUMER VALUATION OF BEEF RIBEYE STEAK ATTRIBUTES

A choice experiment (conjoint analysis) was used to investigate consumer demand for several beef ribeye steak attributes. Respondents indicated that they would prefer a "hormone free" ribeye steak priced up to $6.68/lb. more than a "non-hormone" free ribeye steak. Tenderness was also identified as an important attribute in the consumer purchasing decision as a one-unit increase in the tenderness of a steak (on a scale of one to 10) was associated with a$1.13/lb. premium. Steak marbling and whether the animal was fed genetically modified corn were of less importance to consumers.Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

MEASUREMENT OF GRADING ERROR COSTS IN THE BEEF INDUSTRY

This paper models the market for beef products when quality production is stochastic and quality information is asymmetric between producers and consumers. Independent sorters act as intermediaries to enhance market efficiency by guaranteeing minimum quality levels. Market shares, effort levels, prices, and quality standards are obtained for general market equilibrium.Marketing,

BEEF QUALITY: WILL CONSUMERS PAY FOR LESS FAT?

A nationwide retail survey is used to estimate hedonic prices of fat characteristics in beef table cuts. Results show that consumers consistently place a negative value on external fat for all table cuts and on seam fat in chuck and round cuts, but do not consistently value intramuscular fat. These consumer preferences are not transmitted to cattle feeders through price signals, even though the current beef grading system can distinguish carcasses with undesirable fat characteristics.Consumer/Household Economics,

Application of imaging and ultrasound to the quality grading of beef

The results of a study conducted to assist the Department of Agriculture in the task of considering innovative methods for the grading of carcass beef for human consumption is presented. The processing of photographic, television and ultrasound images of the longissimus dorsi muscle at the 12/13th rib cut was undertaken. The results showed that a correlation could be developed between the quality grade of the carcass as determined by a professional grader, and the fat to area ratio of the muscle as determined by image processing techniques. In addition, the use of ultrasound shows the potential for grading of an unsliced carcass or a live animal

ASSESSING THE COST OF BEEF QUALITY

The number of U.S. fed cattle marketed through a value based or grid marketing system is increasing dramatically. Most grids reward Choice or better quality grades and some pay premiums for red meat yield. The Choice-Select (C-S) price spread increased 55 percent, over $3/cwt between 1989-91 and 1999-01. However, there is a cost associated with pursuing these carcass premiums. This paper examines these tradeoffs both in the feedlot and in a retained ownership scenario. Correlations between carcass and performance traits resulted in economic tradeoffs that change across input costs and quality grade premiums and discounts. Feedlot profitability was largely determined by marbling, carcass weight, and feed efficiency. Carcass weight was most important at a low C-S spread. However, at average C-S spread and higher, marbling became the largest determinate of feedlot profits, and its importance increased with the C-S spread. Carcass weight and feed efficiency influence on feedlot profitability declined at higher C-S spreads. Rib-eye area was the fourth most important variable and declined in importance as marbling increased in importance. There is some indication that cows with lower feed costs also produce the most profitable calf for the feedlot, and vice-versa. The data suggests that cow size and marbling score are negatively correlated. The current trend toward wider C-S spreads and rewarding higher quality grading cattle places greater emphasis on marbling ability of calves. These correlations and results suggest that higher marbling is associated with lower cost cows to maintain.Livestock Production/Industries, Marketing,

RETURNS TO SORTING AND MARKET TIMING OF ANIMALS WITHIN PENS OF FED CATTLE

This research examines returns to cattle feeding operations that sort animals prior to marketing using ultrasound technology. The returns to sorting are between $11 and$25 per head depending on the number of groups the pens into which cattle can be sorted. Sorting faces declining returns. These returns can also be viewed as the costs imposed by institutional constraints that limit co-mingling of cattle. Through sorting, cattle feeding operations are able to reduce meat quality discounts, increase meat quality premiums, increase beef carcass quality characteristics, more efficiently use feed resources, and increase profits.Livestock Production/Industries,

RELATIONSHIP BETWEEN ATTRIBUTES OF BEEF CATTLE RAISED USING ULTRASOUND TECHNOLOGY AND PRICES RECEIVED AT THE PACKERS: A HEDONIC PRICE ANALYSIS

Sluggish growth in per capita consumption and a downward pressure on beef price at the farm level has required producers to raise cattle that precisely target the meat attributes desired by consumers. Ultrasound technology can help farmers to produce a carcass with an optimal mix of marbling and muscling, and external fat. The results of this study show a high level of accuracy of ultrasound technology in predicting carcass attributes. An estimated hedonic regression model shows that the carcass attributes are reflected on the implicit beef price. Ultrasound technology helps producers to produce carcass with the desired attributes, thus obtain a higher price.Demand and Price Analysis,