8
—Lancaster Farming, Saturday, Dec. 28, 1974
Beef Grades
(Continued on Page 7]
PRESENT AND '
PROPOSED
STANDARDS
The proposed changes can
be discussed in three
categories: (1) Marbling and
maturity, (2) conformation,
and (3) yield grade.
Figure 1 displays the
current and proposed
standards for the relation
ship among marbling,
maturity, and quality. Hie
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present marbling
requirements are indicated
by the light lines and the
proposed standards by the
heavier lines. The sections
marked with parallel lines
indicate a change to the next
higher grade. The
crosshatched area indicates
a change from Good to
Standard. A further change
not indicated by Figure 1
reduces the maximum
maturity allowable in the
mmmm
Good and Standard grades to
that of Choice and Prime.
The youngest cattle
qualifying as beef are of “A”
maturity (approximately 9
to 30 months of age). Under
the proposal no increased
marbling is required for
increasing maturity within
the “A” maturity range.
With “B” maturity, in
creasing marbling is
required with the same slope
as in the current standards.
Under the proposal,
conformation would be
eliminated from the factors
used in determining the
quality grade.
Currently, carcasses may
be either quality graded or
yield graded or both. Under
the proposed standards,
carcasses, if graded must be
identified for both.
In order to analyze the
effects or judge the wisdom
of a proposed grade change,
some thought should be
given to the function of
grades. Grading can be
defined as a method of
classifying or grouping units
of a commodity such that the
variation or change in
quality is smaller within the
group than over the whole
range of the commodity.
Industry objectives for
grades have differed.
Traders were first interested
in having an unambiguous
and consistent language for
market news reporting and
maintaining consistent
supplies of goods. Early
support for beet grading
among farmers and their
representatives was
producer-oriented with a
view toward the promotion
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of purebred cattle, although
there was an agreement that
grades should have meaning
to consumers. Consumers
were not a strong force in
formulating grades,
although their support has
been important in preser
ving them. Most would agree
that grades are helpful to
consumers if they allow
more informed shopping.
Whether grades should at
tempt to indicate rank or
dering of palatability,
nutritional content, or only
categorize according to
“relevent criteria” is a
personal judgment. Unless
all consumers agree on
which quality group is best,
grades should probably be
descriptive.
Diverse objectives or
functions ascribed to grades
and grading by economists
piay be summarized and
abbreviated by directing
production towards those
items most demanded by
consumers. Grades are
beneficial if they (1) help
consumers to gain
maximum satisfaction from
their dollars and (2) assist
producers and marketing
firms in allocating resources
efficiently and equitably.
IMPLICATIONS
Are the grade changes
consistent with economic
objectives? How might
separate industry segments
be affected? What
reallocation of resources
might be expected due to the
adoption of the proposed
grade change?
Economic Objectives
Conformation: Con-
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formation as presently
identified is not a good
criterion for carcass
grading. It has served to
change the quality group or
grade assigned to a carcass.
Therefore, it has added
variability within quality
classes.
Its elimination, especially
with the availability of the
yield grade, which does a
better job of measuring the
effects of differences in
cutability, is consistent with
increasing homogeneity
within a quality class,
without affecting the number
or width of grades.
Yield grade; Variation in
cutability exists within
quality grades (under both
the current or proposed
standards). The yield grade
explains an important part
of this variability. Yield
grade, therefore, identifies
the variation in cutability
within quality grades and
has the potential for im
proving pricing accuracy.
Marbling and maturity are
a part of the grade standards
solely to classify "beef for
eating quality. The proposed
change is merely a
definitional one. If it results
in more homogeneous
grouping of real and
valuable attributes within
grades, then the change is
desirable. The direction of
the change is consistent with
recent palatability research.
Effect on
Industry Segments
Consumers: The part of
the change of direct concern
to consumers is the marbling
and maturity relationship.
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This change is small and
probably undetectable to
consumers for beef in the
Prime and Choice grades
The variation within the
Good grade should be
reduced to an extent
noticeable to consumers
having access to meat
graded Good. The consumer
could be indicrectly affected
by lower relative prices of
Choice if the supply of Choice
should increase
dramatically due to the
change, and by lower prices
in general if efficiency of the
industry is improved.
Retailers: Many retailers
have found it profitable to
carry only one grade of beef,
often Choice or a branded
product consisting of Good
as well as other grades. If
the demand for Good in
creases, they may find it
profitable to carry both Good
and Choice.
Retailers who have suc
cessfully specialized in
merchandising “top Good”
beef under a brand name
may find some of their
supply gone to the Choice
grade. These retailers would
have to adjust to a different
grade level for branding or
adjust their merchandising
practices in some other way.
Retailers who normally have
carried the Choice (or
Prime) grade would also be
affected by an increase in
the supply of Choice relative
to Good.
Pakcers: Packers may
find it necessary to adjust
buying practices to account
more closely for cutability
I Continued on Page 9]
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