For more than six decades, the beef industry has relied on the USDA yield grading system to estimate the amount of saleable product from a carcass. But as genetics, weights and production technologies have evolved, many in the industry believe it may be time to revisit that equation. Funded by the Beef Checkoff, the National Cattlemen’s Beef Association (NCBA) has established the NCBA Red Meat Yield Working Group to develop a new grading system that better reflects the reality of today’s carcass value and red meat yield.

The research effort involves a collaboration of universities, processors, producers, and branded beef programs, such as Certified Angus Beef, to study the impact of yield grading across the supply chain. While still in the research phase, industry leaders say the goal is straightforward: provide more accurate information about carcass composition and deliver clearer economic signals throughout the beef supply chain.

Why Reconsider Yield Grading?

The current USDA yield grade system estimates cutability using a formula based on ribeye area, fat thickness, hot carcass weight, and kidney, pelvic and heart fat. Those measurements are used to estimate the percentage of boneless, closely trimmed retail cuts from the round, loin, rib and chuck. That system worked well for decades, but today’s cattle and markets present new challenges.

“The original equation was built using cattle from the late 1950s,” said Ty Lawrence, professor of animal science and director of the beef carcass research center at West Texas A&M University. “Those cattle were smaller, lighter and genetically different than the cattle we have today.”

At the time, Herefords dominated the industry. Today, the U.S. herd is far more diverse, with Angus genetics more widespread and many commercial herds producing crossbred cattle. Carcass size has also increased dramatically. “The animals used to develop the original system most likely weighed about 1,000 pounds,” Lawrence said. “Now the carcass weighs around 1,000 pounds. The live animal easily weighs 1,500-1,600 [pounds] or more.”

Changes in management and technology have further altered the composition of cattle. Growth-promoting implants, beta agonists and other technologies influence muscle development in ways that were not common when the yield grade formula was created. Meanwhile, consumer expectations have also shifted. Retail beef cuts today are trimmed much leaner than they were decades ago, meaning more external fat is removed during processing. Together, those changes have made experts question if the current yield grading equation accurately reflects the value of today’s carcasses.

Moving Toward Red Meat Yield

One key difference in the research effort is the focus on measuring the entire carcass rather than only select primal cuts. The traditional yield grade system estimates retail yield primarily from the round, loin, rib and chuck. But the industry now wants to understand the value of the whole carcass.

“A focus on red meat yield is really about using muscle, fat and bone composition to predict the value of the entire carcass,” John Stika, president of Certified Angus Beef and co-chair of the NCBA Red Meat Yield Working Group. That includes products often excluded from traditional calculations, such as ground beef trim, and thin meats like brisket, flank and skirt.

Researchers believe a broader understanding of carcass composition could better reflect how beef is actually marketed and consumed today.

New Technology Driving the Research

To gather more detailed data on carcass composition, researchers are employing advanced imaging technology. One of the tools used in the research effort is CT scanning — technology more commonly associated with medical imaging.

“Carcasses are put through a CT scan, and then we match that imagery with the actual red meat yield when the carcass is physically cut apart,” Lawrence said. Because of their size, carcasses are scanned in sections and then compared with results from traditional knife fabrication. By pairing the imaging data with actual cutout measurements, researchers can analyze how muscle, fat and bone are distributed throughout the carcass.

That approach allows scientists to study far more information than the single rib measurement used in the current grading system. Researchers hope the expanded dataset will lead to a grading approach that more accurately predicts saleable yield. Today’s yield grade equation accounts for only about 40% of the variation in red meat yield, Stika said — leaving considerable room for improvement.

Signals for Economic Efficiency

Over the past several decades, producers have responded strongly to market incentives that encourage higher-quality beef. As a result, the industry now produces record levels of Prime and Premium Choice carcasses. “We’ve got the highest quality inventory we’ve ever had,” Stika said. But at the same time, carcass weights have increased and cattle are often finished with higher levels of fat.

A more precise measurement of saleable yield could help balance those trends by rewarding cattle that combine quality with efficient carcass composition. “The ones that will be worth the most are the cattle that produce the most pounds of high-quality edible product,” Stika said.

From the packer’s perspective, improved yield information could also help optimize plant fabrication decisions. “It should allow the beef processor to sort cattle into more meaningful groups,” Lawrence said. With better knowledge of carcass composition, processors could potentially adjust fabrication strategies to maximize value from each carcass.

If adopted, a new red meat yield metric would likely be incorporated into grid marketing systems used between packers and cattle feeders. Grid pricing already rewards cattle for desirable carcass traits, such as quality grade and weight, while applying discounts for undesirable traits, such as excessive fat. A more accurate measurement of saleable yield could refine those price signals.

“I think of it more as a refinement in value-based marketing,” Stika said. Rather than fundamentally changing how cattle are priced, the new system would provide a clearer measure of carcass value — helping align payments more closely with what processors actually receive from each animal. Lawrence agrees that improved measurement could benefit both sides of the transaction. “It should be a better metric of animal value between the cattle feeder and the beef processor,” he said.

Change Coming?

One important point researchers emphasize is that the goal is not to shift the industry away from quality. Beef demand remains strongly tied to eating satisfaction, and the industry has worked for decades to improve marbling and flavor.

“We cannot lose quality,” Lawrence said. “Quality and flavor are what the industry hangs its hat on.” At the same time, excessive external fat represents lost value. When a carcass is purchased at a premium price, but large portions are trimmed away and rendered into lower-value products like tallow, that represents inefficiency in the system.

Lawrence noted that a significant portion of the average carcass today consists of fat that must be trimmed away during processing. “Today, when an animal walks into a slaughterhouse, the average animal is about one-third fat,” he said.

The industry’s challenge is finding the balance between maintaining marbling and minimizing excess trim. And despite the industry’s interest in refining yield measurement, both researchers emphasize that the work is still in its early stages.

“We don’t have a system yet,” Lawrence said. “We’ve started data collection, but we’re not there yet.” Data collection could take several years, followed by additional analysis and technology development, before a new system could be implemented. For now, producers do not need to change management practices in response to the research, but continue to choose cattle that are structurally sound, fit their environment and produce a high-quality product.

Though a new yield grading approach could influence genetic selection and breeding decisions, the answers are not yet clear on what traits breeders and breed registries should begin measuring. “I’ve had a dozen breed associations call and ask what they should focus on,” Lawrence said. “The answer right now is we don’t know.”

If a new system provides better feedback on carcass composition, it could help producers select cattle that deliver both high-quality grades and efficient red meat yield. That information would benefit every segment of the industry, from seedstock producers to cow-calf operators, to feeders and packers.

For producers, the message is clear: the industry is exploring ways to better measure carcass value, but the fundamentals of profitable cattle production remain the same. Quality still matters. Efficiency still matters. And in the years ahead, improved tools may help producers capture more value from both.

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