Principles of Marketing Ppt by lxc20899

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									Principles of Marketing
 and Evaluating Beef
            Beef Industry

• Beef is one of the most productive
  meat industries in the United States
    • In 2009 the retail industry sold $73
      billion dollars in beef products
    • US consumers consumed nearly 27
      billion pounds of beef in 2009
             Beef Cattle Use

• Beef cattle are first given a
  designation to determine their use
  – Slaughter
    • To be killed and sold as meat
  – Feeder
    • To be fed to heavier weights
      before slaughter
          Beef Cattle Age

• Beef cattle are then given a
  designated class according to their
  age to help determine use
  – Age classes are used when marketing
    cattle for sale/production/slaughter
            Beef Cattle Age
• Calves
  – Less than one year of age
    • Veal calves
       – Less than three months old
    • Slaughter calves
       – 3 months to one year old
    • Feeder calves
       – 6 months to one year old
• Cattle
  – One year or older
           Beef Cattle Sex

• Sex class helps determine the quality
  of the live cattle carcass
  – The sex class of the cattle becomes a
    factor when evaluating the beef carcass
    grade as well
            Beef Cattle Sex
• Bull                 • Steer
  – A mature             – A castrated
    uncastrated male       young male
• Bullock              • Cow
  – A young              – A mature female
    uncastrated or     • Heifer
    castrated male
                         – An immature
         Beef Cattle Grades
• Live beef cattle are given grades to
  help determine what quality carcass
  they will produce
  – This is helpful to producers and
    processors because it estimates the
    value of the cattle being processed
  – Feeder cattle and slaughter cattle are
    given grades based on different factors
          Determining Beef
           Cattle Grades
• Feeder Cattle Grades
  – Frame size
  – Muscle thickness
  – Thriftiness
• Slaughter Cattle Grades
  – Quality
  – Yield
        Feeder Cattle Grades
• Frame Size
  – Indicates the size of the animal’s skeleton
    (height and body length)
• Muscle Thickness
  – Indicates the development of the muscle
    system in relation to the size of the skeleton
• Thriftiness
  – Indicates the apparent health of the animal
    and its ability to grow and fatten
        Feeder Cattle Grades
            Frame Size
• Large Frame
  – Tall and long bodies
    • Steers 1200+ lbs
    • Heifers 1000+ lbs

• Medium Frame
  – Slightly tall and slightly long bodies
    • Steers 1000-1200 lbs
    • Heifers 850-1000 lbs
       Feeder Cattle Grades
           Frame Size

• Small Frame
  – Small frame and shorter bodies
    • Steers less than 1000 lbs
    • Heifers less than 850 lbs
         Feeder Cattle Grades
          Muscle Thickness
• No 1
  – Thick muscling
  – Thin covering of fat
• No 2
  – Slightly thick muscling
  – Slightly thin covering of fat
• No 3
  – Thin muscling
  – Thick or thin covering of fat
       Feeder Cattle Grades

• Once the cattle are evaluated and
  determined to be thrifty the grades
  are combined.
  – The cattle are only given one grade for
    each category
    • Frame Size
    • Muscle Thickness
       – Example: Large Frame No. 1
           Slaughter Cattle
• Quality Grade
  – Is determined by the sex class, age or
    maturity and marbling of the carcass
• Yield Grade
  – Is determined by the percentage of the
    carcass that is boneless, closely
    trimmed retail cuts from the round, loin
    rib and chuck
         Slaughter Cattle
       Grades-Quality Grade
• 8 Quality Grades
  – Prime
  – Choice
  – Select           High Quality
  – Standard
  – Commercial
  – Utility          Low Quality
  – Cutter
  – Canner
         Slaughter Cattle
       Grades-Quality Grade
• Carcasses are only given 1 of the 8 quality
  – About 80% of grain fed cattle receive a choice
• Sex classes that influence quality grade
  – Cows are not allowed Prime grades
  – Bulls are not allowed Prime or Choice grades
  – Bullocks are limited to Prime, Choice, Select
    and Standard grades
  – Steers and heifers are allowed all grades
         Slaughter Cattle
       Grades-Quality Grade
• Age/Maturity influences on quality grade
  – Prime, Choice and Standard grades must be
    under 42 months
  – Select grades must be under 30 months
• Marbling influences on quality grade
  – Prime must have slightly abundant marbling
  – Select must have slight marbling
          Slaughter Cattle
        Grades-Quality Grade
• Marbling
  – Marbling is the dispersal or intermingling of fat
    among the muscle fiber in the ribeye between
    the twelfth and thirteenth rib

                   Moderate           Slightly
  Slaughter Cattle
Grades-Quality Grade
          Slaughter Cattle
         Grades-Yield Grade
• 5 Yield Grades
  – Yield 1
  – Yield 2     High Yield of Lean
  – Yield 3           Cuts
  – Yield 4      Low Yield of Lean
  – Yield 5            Cuts
• Carcasses only receive 1 of the 5 yield
           Slaughter Cattle

• Once the cattle carcasses are
  evaluated the grades are combined.
  – The cattle are only given one grade for
    each category
    • Quality
    • Yield
       – Example: Prime Grade Yield 1
      Beef Cattle Wholesale
            Meat Cuts

• After slaughter the beef carcass is
  divided into wholesale meat cuts that
  are sold to butchers and grocery
  – High Value
    • Loin, Rib, Round and Rump
  – Low Value
    • Chuck, Brisket, Flank, Plate and Shank
            Beef Cattle Wholesale
                  Meat Cuts

         Chuck                                    Rump
                         Rib            Loin


         Brisket         Plate          Flank


80% of the value of the retail carcass comes from these wholesale cuts:
                        Chuck, Round, Loin and Rib
        Beef Cattle Retail Meat
• The wholesale cuts are then cut into retail
  cuts that are sold to consumers
  – High Value
     • Rib
        – Ribeye and Rib Roast
     • Loin
        – Tenderloin, Sirloin and T-bone
     • Rump
        – Rump Roast
     • Round
        – Top Round Roast
     Beef Cattle Retail Meat
– Low Value
  • Chuck
     – Stew Beef, Ground Beef and Cubed Steak
  • Brisket
     – Corned Beef Brisket
  • Flank
     – Flank Steak and Ground Beef
  • Plate
     – Skirt Steak and Ground Beef
  • Shank
     – Cross Cuts
        Beef Cattle Retail Meat

  Ground Beef
  Cubed Steak                   Sirloin     Rump
                              Tenderloin    Roast
   Stew Beef    Rib Roast      T-Bone
                                                Top Round
  Corned Beef                 Flank Steak         Roast
                Skirt Steak
                Ground Beef   Ground Beef

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