Beef Pricing Grid
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This document summarizes key information about beef pricing, including dressing percentages, quality grades, yield grades, carcass value per hundredweight (cwt), gross carcass value, live value, days on feed and feed costs, total feed costs, and calculating profits. It provides an example calculation for three steers, finding that Steer 3 was the most profitable, having the highest carcass value/cwt, and that more days on feed can result in more profit.
Beef Pricing Grid
- 2. Dressing PercentagesCarcass Weight ÷ Live Weight = Dressing Percentage#1: 803 ÷ 1275 = .629To make that a percentageMultiply .629 x 100 = 62.9% This can be rounded up to 63%
- 3. Quality GradeQuality Grade: how much fat is in the meat
- 4. Quality GradePrime = PUpper Choice = C+Choice = CSelect = SeStandard = StThis information is given to you – you will never have to figure this out, it is information you will use!
- 5. Yield GradeThis is a measurement of many areas but mostly backfat – This is a measurement of fat outside the muscleYield Grade 1 = LeanYield Grade 5 = Fat
- 6. Carcass Value/CWTCarcass value/CWTCWT = per 100 lbsIn the scenario we are given base price of $145/cwtAnimals #1145 + 3 =148 Carcass value/cwt
- 7. Carcass value/CWTCWT = per 100 lbsIn the scenario we are given base price of $145/cwt Carcass weight deduction:950-1050# -12Over 1051# -35Animals #3145 +10 =158 Carcass value/cwt With deductions since the carcass is above 950158 – 12 = 143
- 8. Gross Carcass value803 ÷ 100 = 8.03 CWT/animal8.03 x 148 = $1188.44 $/animal
- 9. Live ValueLive value is Gross carcass value X Dressing Percentage1188 x .63 = 749
- 10. Day on feed & Feed cost/DayDay on feed is a number that is always given to you along with feed cost per day
- 11. Total Feed CostTo find the total feed cost:Days on feed x Feed cost/day = Total feed cost200 x .79 = 158
- 12. ProfitsGross carcass value – feed cost – health management cost – original calf cost = net profit
- 13. 749 (line value) – 158 (feed) = 591
- 14. 591 – 24 (Health cost) = 567
- 15. All animal were purchased at 600 lb for 90 cwt
- 16. 600 ÷ 100 = 6 >>> 6 x 90 = 540
- 17. 567 – 540 (calf) = $27 profitWhich Steer was most profitable?
- 18. 3
- 19. Was the Steer with the lowest quality grade the least profitable?
- 20. 1=yes
- 21. Did more days on feed result in more profit?
- 22. 1=yes
- 23. Did the steer with the poorest yield grade have the lowest carcass value/cwt?
- 24. 2=no
- 25. Does it appear that the dressing percent is higher for fatter steers?
- 26. 1=yes