Abstract:
Animal Production in Australia MARKETING SLAUGHTER CATTLE ON BEEF YIELD D.D. CHARLES* SUMMARY It is proposed that slaughter cattle be marketed on yield of carcass beef 80/20 estimated from a measurement of fat in the carcass and with the liveweight price adjusted accordingly. It is suggested this system will eliminate anomalies in relative market prices among slaughter cattle and be a positive incentive to supply markets with suitable livestock. It will also allow the beef cattle producer to more effectively evaluate his animals and his management practices. INTRODUCTION The price of slaughter cattle is determined from an estimation of the value of the marketable beef that will be obtained from the carcass. However, in practice, the prices for live animals are not always a true reflection of their marketable beef value. In some markets, cattle with only marginal superiority in beef yield, realize disproportionately higher prices than cattle of slightly inferior yield. In other market situations, high beef yield cattle realize little more than low beef yield animals. The tendency of markets to average prices means that some cattle realize prices in excess of their value for beef and this is balanced by others attracting prices below their true value. Where the price differential among slaughter cattle is not in accordance with differences between them in yield of marketable beef, there is inadequate incentive for producers to meet market requirements and confused and inefficient production practices. The livestock markets for slaughter cattle should give a positive and clear incentive to producers to supply stock which yield beef of satisfactory quality with a minimum of waste that adds unnecessarily to the costs of processing and to the marketing of consumer beef. Clear-cut market guidelines and financial reward would enable producers to make effective management and marketing decisions. MARKETABLE BEEF Where beef is of consistent composition almost all of the difference in the beef percentage of carcasses is due to differences in fatness. The major component of beef is muscle and the muscle percentage of the carcass decreases by 2/3 of one per cent for each increase of one per cent in carcass fat (Charles 1974). Therefore, although fat is an essential component of marketable beef, any carcass fat in excess of requirements means a decrease in the carcass yield of beef. Over-fat carcasses also represent wasteful beef production because fat generally does not become excessive until after the growth of muscle is nearing completion. In addition, excess carcass fat adds to the costs of processing and this is particularly so in the labour intensive preparation of retail cuts. The pricing of slaughter cattle on yield of marketable beef would encourage efficient beef production and would reduce abattoir and the beef trade costs. * Department of Animal Production, University of Queensland, St. Lucia, Qld 4067. 385 Animal Production in Australia Obviously, for beef yield to be a useful basis for pricing cattle, it would be essential for the yield to have a composition of muscle and fat of fixed and known proportions. There would be no point in pricing cattle on the basis of their yield of a product of unknown and variable composition. BEEF YIELD A reliable and accurate estimate of the carcass yield of muscle and fat in known proportions is readily obtained from the thickness of fat covering m. longissimus at the 12th rib (Charles 1977). Such an estimate is possible because of the well established relationship between carcass fat thickness and the carcass percentages of muscle and fat. As the carcass yield of beef will include all of the muscle in the carcass, the yield of beef with muscle and fat in fixed proportions is simply the amount of carcass muscle present plus the requisite amount of fat. Muscle and fat in fixed proportions of 4 to 1 (80% muscle, 20% fat) and described as carcass beef 80/20, is considered the most suitable composition for general marketing purposes. The most effective use of carcass beef 80/20 in marketing slaughter cattle would require that the sale price or rate be on the basis of the carcass having a prescribed minimum estimated yield of carcass beef 80/20 with adjustments to the sale price for yields less than the prescribed minimum. A carcass beef 80/20 yield of not less than 76% is recommended as corresponds with a carcass fatness of 25% and a carcass fat thickness of This is slightly more fat than required by many markets and is therefore reasonable and practical limit to fatness in cattle for them to attract highest market rates. it 7 mm. a the Table 1 shows the estimated yields of carcass beef 80/20 from carcasses of fat thickness measurements between 1 and 15 mm and the necessary adjustments to liveweight price to achieve an almost uniform price per kg of carcass beef 80/20. Table 1 Estimated carcass beef 80/20 yields for carcass fat thickness l-15 mm and percentages of liveweight price corrected for yield 386 Animal Production in Australia A further adjustment of 3% is required to be made to the liveweight market price for each mm of fat thickness in excess of 15. The highest yield occurs at 3 mm fat thickness when fat in the carcass is one fourth the weight and percentage of muscle. The decrease in yields results from increasing fat and decreasing muscle percentages. The table shows that although carcasses with fat thicknesses less than 3 mm do not yield carcass beef 80/20 there is no price adjustment for underfinished cattle. These animals are automatically at a weight and therefore, price disadvantage. IMPLEMEhiNTATION The adjustment in price for yield should include the added costs to the trade in the processing of over-fat cattle and carcasses. The adjusted percentages of liveweight price shown in the table, include an average loading of 0.6%. Although this is quite inadequate, there is a positive disincentive to over-fatten cattle to increase carcass weights, because this will result in reduced yields and therefore a greater adjustment to the liveweight price. It would be necessary to have a time limit between sale and slaughter to ensure an early finalization of the sale. However, it should be realised that delayed slaughter will not be to the advantage of the buyer in price, because an adjustment to the market price is made only for over-fatness. Similarly, procedures of slaughterand carcass dressing cannot cause an adjustment to the liveweight price. As it would be necessary that any price adjustment be seen to be fair, the measurement of carcass fat thickness and the verification of estimated yields of of less than 76% could be a responsibility of the meat inspection service. The forces and factors that determine prices for slaughter cattle would be unchanged except that buyers would not need to consider the effects of fatness on yield of marketable beef. Producers would know that any adjustment to the selling price could arise only if yield were reduced by over-fatness and that the adjustment would be,correct and fair according to the yield of beef. The measurement of carcass relationship with beef yield and It is the beef yield that has a and as such is a realistic basis ials for slaughter cattle. fat thickness is of value only because of its should not be used directly for price adjustment. common importance to all sections of the industry for the determination of market value different- The advantages of liveweight selling would be preserved by marketing on carcass beef 80/20 percentage, and where weight and grade selling is preferred, carcass beef 80/20 weight would be used. The introduction of this marketing system could follow a familiarisation period in which details of caracss beef 80/20 yields of less than 76% were forwarded to buyers and sellers of slaughter cattle. There should be no disadvantage to either producers or traders in this system and their representatives could co-operate in monitoring its application and in making any necessary modifications. CONCLUSION The marketing of slaughter cattle on yield of carcass beef 80/20 should have the following results: 387 Animal Production in Australia 1. 2. 3. 4. Slaughter cattle prices consistent with the market value of their beef Producer incentive to market cattle at levels of fatness most suitable for beef market outlets An increase in the capability of butchers to prepare beef cuts of satisfactory composition to consumers A sound basis for producers to evaluate beef cattle, management practices and husbandry procedures REFERENCES CHARLES, D.D. (1974). Res. Vet. Sci. 16:89-94. CHARLES, D.D. (1977). Aust. J. Agric. Res. 28:1133-g. T 388