Factors Contributing to Increased Quality Grade of U.S. Fed Cattle

The quality grade (QG) trend in the U.S. is marked by functional shifts in grading methods as well as economically driven cattle marketing and management enhancements. As recently as 2005, the beef industry faced concerns related to inadequate marbling with only 52.9% of carcasses grading choice. From 2007 to 2015 fed cattle QG steadily increased to 69.1% choice and 5.1% prime. While these data may seem low compared to 1970’s and 1980’s QG one must recognize only carcasses expected to grade choice or greater were presented for grading during that period. Today nearly all cattle are quality graded, suggesting significant QG improvement. Implementation of instrument grading has enhanced QG accuracy and consistency. The transition toward value-based marketing on a carcass basis began in 2005 when 40% of cattle were sold on cash and carcass basis, whereas today carcass formula agreements exceed 60% of trade while cash declined to 20% of transactions. As cattle feeders began capturing the value of carcass merit in addition to weight, QG improved due to increased days on feed, heavier carcass weights and favorable value and cost of gain relationships. Feeding cattle to heavier endpoints improved QG, supplemented low beef supplies and increased the percentage of yield grade 4 and 5 carcasses. The seedstock and commercial cow-calf segments recognized market signals communicating increasing value for cattle with greater genetic potential for QG. The genetic trend for marbling EPD of Angus, Red Angus, Hereford, Simmental and Charolais increased from 2005 to 2015. Survey data suggest these breeds make up over 95% of service sires marketed, with Angus or Angus-influenced sires representing the majority. Breed improvement for marbling coupled with drought induced culling of older, less productive cows and their replacement with heifers bred to Angus bulls also contributed to QG improvement. As the beef cattle inventory declined, the percentage of fed cattle comprised of Holstein increased to nearly 20% by 2015, this increased percentage coupled with greater marbling potential than native beef cattle contributed to additional QG improvement. Technology’s role in QG improvement likely occurred through expanded end-point management options. Delayed-release growth implants and beta-agonists provided cattle feeders opportunities to feed cattle to heavier weights while managing potential yield grade discounts. Quality grade is the highest in modern history and this supply has been met with growing demand for prime and premium choice beef. The challenge, to continue demand growth while expanding the goal beyond grading choice.