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.

1. Beef Pricing Grid

2. Dressing Percentages Carcass Weight ÷ Live Weight = Dressing Percentage #1: 803 ÷ 1275 = .629 To make that a percentage Multiply .629 x 100 = 62.9% This can be rounded up to 63%

3. Quality Grade Quality Grade: how much fat is in the meat

4. Quality Grade Prime = P Upper Choice = C+ Choice = C Select = Se Standard = St This information is given to you – you will never have to figure this out, it is information you will use!

5. Yield Grade This is a measurement of many areas but mostly backfat – This is a measurement of fat outside the muscle Yield Grade 1 = Lean Yield Grade 5 = Fat

6. Carcass Value/CWT Carcass value/CWT CWT = per 100 lbs In the scenario we are given base price of $145/cwt Animals #1 145 + 3 =148 Carcass value/cwt

7. Carcass value/CWT CWT = per 100 lbs In the scenario we are given base price of $145/cwt Carcass weight deduction: 950-1050# -12 Over 1051# -35 Animals #3 145 +10 =158 Carcass value/cwt With deductions since the carcass is above 950 158 – 12 = 143

8. Gross Carcass value 803 ÷ 100 = 8.03 CWT/animal 8.03 x 148 = $1188.44 $/animal

9. Live Value Live value is Gross carcass value X Dressing Percentage 1188 x .63 = 749

10. Day on feed & Feed cost/Day Day on feed is a number that is always given to you along with feed cost per day

11. Total Feed Cost To find the total feed cost: Days on feed x Feed cost/day = Total feed cost 200 x .79 = 158

12. Profits Gross carcass value – feed cost – health management cost – original calf cost = net profit

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

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