Industry At A Glance: Yield Grade Trend Over TimeIndustry At A Glance: Yield Grade Trend Over Time

Whatever the cause, there’s clearly been an increased percentage of cattle crossing over into the upper threshold of yield grades since around 2000.

Nevil Speer

September 26, 2013

2 Min Read
Industry At A Glance: Yield Grade Trend Over Time

One of the key questions that occurred during a panel discussion at this summer’s Beef Improvement Federation (BIF) annual meeting surrounded the change in USDA Yield Grade (YG) within the slaughter mix over time. Specifically, there’s been a marked increase in YG 4s and 5s that began roughly around the year 2000. The trend suggests some questions about the beef industry’s relative efficiency.

Some of the BIF discussion on the topic focused on the economic incentives that currently exist within the marketing system. Most notable is that the discount for YG 4s and 5s remains relatively muted.

That fact, coupled with relatively limited discounts for heavyweight cattle, indirectly incentivize cattle feeders to feed cattle to heavier weights. In an environment of limited supply, that’s a favorable scenario; longer feeding periods mean slower turnover and reduces the pressure to find and purchase replacements.
 

USDA Yield Grade Percentages

Whatever the cause, there’s clearly been an increased percentage of cattle crossing over into the upper threshold of yield grades.

Amidst that discussion, two key questions arise. One, what factors will change the economic incentives that currently exist driving this trend? And, two, what implications does the trend have upon the industry’s competitiveness with pork and poultry; in other words, is the industry chasing weight in lieu of efficiency?

How do you perceive the YG trend within the industry and subsequent implications? Will the trend significantly reverse in the near future or is this a new normal? Leave your thoughts below.

 

You might also like:

50 Top BEEF Industry Leaders

70+ Photos Showcase Ranching As A Family Affair

Timeline: 50 Years Of BEEF Magazine Coverage

When To Castrate Calves

Beef Cow Production Will Continue To Shift Out Of The Corn Belt

 

About the Author

Nevil Speer

Nevil Speer works as an industry consultant based in Bowling Green, Kentucky.   He has experience in both academia and private industry.  His career includes working with several start-ups along with various service and consultation projects spanning a wide variety of topics.  

Dr. Speer holds a PhD in Animal Sciences from Colorado State University and an MBA from Western Kentucky University.

You can contact him at [email protected] 

Subscribe to Our Newsletters
BEEF Magazine is the source for beef production, management and market news.

You May Also Like