Marketing Livestock and Poultry

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Marketing Livestock and Poultry

• Objective Describe the methods used to market
  livestock and poultry

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Marketing

• Marketing is an important aspect of any livestock
  system.
• Definition producers exchange livestock and
  products for cash.

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Types of Markets

• Terminal Markets
• Central markets on public stockyards
• Livestock are consigned to a commission firm to
  bargain with buyers for a certain fee

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Methods of Marketing

• Auction Markets
• Public bidding
• Sell to the buyer that bids the highest

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Cattle Auction
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Methods of Marketing

• Direct selling
• No middle person
• Producer sells straight to the buyer
• No commission or fees

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Methods of Marketing

• Electronic marketing
• auctioning on-line using computers
• Futures marketing and hedging
• legal document
• calls for the delivery in the future, locking in
  a future delivery price

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Vertical Integration

• Definition
• Two or more steps of production, marketing and
  processing are linked together usually by a
  contract between the producer and feed
  manufactures or between producers and processors
  including all three

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Vertical Integration
Holly Farms, Case, Purdue
Poultry Farmer or producer
Grain producer
Hatchery
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Vertical Integration

• About 99 of all broilers and a very high
  percentage of turkeys, laying hens and swine are
  grown and marketed through vertical integration
  contracts

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• Which is the best car?

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66 Corvette
66 Mustang
Which is the best car?
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Which is the hottest guy? WHY????
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Grading Systems and Terminology for Cattle
Swine
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Beef Cattle

• Age Classes

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Calves- Less than one year of age.
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Cattle- One year or older
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Veal calves- Less than 3 months old.Usually
weigh less than 200 lbs.
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Slaughter calves- 3 months to 1 year.
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Feeder calves- 6 months to 1 year
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Terminology

• Steer
• Heifer
• Cow
• Bull
• Stag

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Terminology

• Steer male castrated before reaching sexual
  maturity
• Heifer female that has not had a calf or
  matured as a cow
• Cow female that has had a calf

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Terminology

• Bull uncastrated (intact) male
• Stag made castrated after reaching sexual
  maturity

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Marketing Systems For Livestock and Poultry

• Objective Define cutability, degree of lean,
  marbling, and quality features used to market
  beef and swine

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• Economically important traits for beef cattle
  evaluation are
• Live weight
• Dressing percent
• Muscling
• Fat thickness
• Yield grade
• Quality grade.

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• Live Weight
• Beef Cattle have a wider range of market weights
  than other species due to differences in
  type/breed and maturity.
• Normal Range  950- 1500 lb. Average   1150 lb.

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What is Cutability?

• The term cutability describes the proportion of
  an animal which is saleable meat.
• Dressing percentage
• Percentage of the live animal which forms its
  carcass
• Saleable meat yield or retail yield
• Percentage of the carcass which is saleable meat.

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What is Cutability?

• No two animals are the same
• Cutability varies widely between individual
  animals

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High Cutability
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High Cutability

• Wide stance
• Convex shoulders and hindquarters
• Trim brisket
• Wide over the shoulders

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Low Cutability

• Animals with low cutability do not look muscular,
  indicating a low ratio of muscle to bone.
• a narrow stance, especially through the lower
  hindquarters
• flat forearms and shoulders
• narrow, poorly developed

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Low Cutability

• Animals that are overfat and have an uneven
  distribution of fat have
• lumpy deposits of fat in the brisket flank and
  tailhead
• a soft, spongy feel

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Grading Meat

• Beef and Swine are graded using
• Quality Grades
• The worthiness of the meat produced
• Tenderness, juiciness, and flavor
• Yield Grades
• The amount of meat produced from a specific
  carcass

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Grading Meat

• 1. Quality Grades
• Determined by the class or kind of animal (steer,
  heifer, cow, bull), age or maturity, firmness and
  marbling of the carcass.

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Quality Grades

• Prime
• Choice
• Select
• Standard and Commercial
• Utility, Cutter, and Canner

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Grading Meat

• Prime grade
• Produced from young, well-fed beef cattle. It has
  abundant marbling and is generally sold in
  restaurants and hotels
• Choice grade
• High quality, but has less marbling than Prime

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Grading Meat

• Select grade
• Very uniform in quality and normally leaner than
  the higher grades
• Fairly tender, but, because it has less marbling,
  it may lack some of the juiciness and flavor of
  the higher grades

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Grading Meat

• Standard and Commercial grades
• Frequently are sold as non-graded or as "store
  brand" meat
• Utility, Cutter, and Canner grades
• Are seldom, if ever, sold at retail but are used
  instead to make ground beef and processed products

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Maturity

• A - 9 to 30 Months
• B - 30 to 42 Months
• C - 42 to 72 Months
• D - 72 to 96 Months
• E - More Than 96 Months

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Grading Meat

• 2. Yield grade
• Percentage of the carcass that is boneless,
  closely trimmed retail cuts from the round, loin
  rib, and chuck
• Grades 1, 2, 3, 4, 5

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Which will yield more meat?
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Notice steer is still carrying muscle, but is
beginning to show a small amount of fat
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Notice steer has more fat and less muscle than
the top grades.
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Notice lack of muscle definition and evidence of
fat cover.
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Notice how full the brisket looks, thats full of
fat, and the rest of the body is carrying a lot
of fat.
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Grading Meat

• 3. Marbling
• Intermingling of fat among the muscle fiber
• Measured in the ribeye between the 12th and 13th
  rib

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• The degree of marbling is measured when a carcass
  is ribbed or split between the 12th and 13th ribs

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• 9 degrees of marbling, they are listed from the
  least amount to the highest.
• Practically Devoid (lowest degree)
• Traces
• Slight
• Small
• Modest
• Moderate
• Slightly abundant
• Moderately abundant
• Abundant (highest degree)

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Slight
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Modest
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Moderate
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Slightly abundant
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Muscling A good indication of total carcass
muscle is the ribeye.     
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Feeder Cattle Grades Feeder cattle grades are
affected by frame size, muscle thickness and
thriftiness

• Large Medium Small
• Framed Framed Framed

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Grading Meat

• Swine
• Quality grade is determined by quality of lean
  meat and yield.
• Yield is evaluated by thickness of backfat and
  degree of muscling.
• Degrees of muscling are thick, average and thin.

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Backfat
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Pop Quiz

• 1) Name the two types of grading for cutability
• 2) What are the degrees of muscling in swine?
• 3) What places highest, Choice, Select, or
  Commercial?
• 4) Where is marbling assessed on each carcass?
• 5) How are quality grades determined?

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Cuts of Beef and Swine

• Objective
• Identify the wholesale and retail cuts of beef
  and swine

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Cuts of Beef

• Wholesale
• High value
• loin, rib, rump, round
• Low Value
• chuck, brisket, flank, plate or shank

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Wholesale Cuts of Beef
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Cuts of Beef

• Retail
• High Value
• ribeye from the rib
• tenderloin from the loin
• sirloin from the loin
• rump from the rump
• T-bone form the loin

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T-Bone
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Ribeye
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Tenderloin
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Cuts of Beef
Ribeye
Tenderloin
Sirloin
T-Bone
Ground Beef
Stew Beef
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Cuts of Pork

• Wholesale
• High Value
• loin, ham, picnic shoulder, Boston shoulder or
  butt
• Low Value
• spareribs or belly, feet, jowl, backfat,
  spareribs or side, bacon

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Wholesale Cuts of Pork
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Cuts of Pork

• Retail
• High Value
• ham, loin, tenderloin, pork chops, Boston butt,
  picnic ham (shoulder)
• Low Value
• hocks, spareribs, belly, bacon, jowl, fatback

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Cuts of Pork
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Cuts of Pork
Pork Chops
Boston Butt
Picnic Shoulder
Country Ham
The Ham, Loin, Picnic Shoulder and Boston Butt
make up 75 of the retail value of the carcass
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Poultry Carcass Evaluation

• Objective Define terminology used in poultry
  carcass selection and evaluation

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Why Grade Poultry Carcasses?

• To insure quality before it is sold
• Prevent the selling of an unwholesome product

• Did you know?
• Grading is voluntary and paid for by the meat
  packer?

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Grading Poultry Carcasses

• USDA Grades indicate quality not sanitation
• Ready-to-cook means that certain parts have been
  removed
• head
• feet and feathers
• blood
• viscera (soft internal organs)

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What are the Grades?

• Poultry Carcass Grades
• Grade A
• Sold in stores
• Grade B
• Often not a grade sold in stores
• Grade C
• Usually used for processing into other food
  products

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Evaluation Factors
Poultry carcasses are graded on the following
factors

• conformation
• fleshing
• fat covering
• exposed flesh
• discoloration

• disjointed and broken bones
• missing parts
• freezing defects

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What Grade is this?
Grade A No Defects
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What Grade is this?
B Grade Back is cut out halfway between the base
of the tail and the hip joints
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What Grade is this?
C Grade. More than 1/3 of flesh exposed on breast
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What Grade is this?
B Grade. Parts of wing removed beyond the second
joint
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What Grade is this?
C Grade. Entire wing removed
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What Grade is this?
C Grade. Over 1/3 of the drumstick flesh is
exposed
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What Grade is this?
C Grade Trimmed more than halfway between base of
tail and hip joints
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Animal Welfare and Rights

• Objective Define animal welfare and rights issues

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Animal Welfare

• Humane treatment of animals
• Most animal producers and researchers believe in
  animal welfare
• support animal nutrition
• oppose cruel treatment

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Animal Welfare

• Scientific information should be the basis for
  decisions, laws, and regulations related to
  animal welfare
• It is difficult to assess animal comfort because
  they do not talk and there are no universally
  accepted measures to use

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Animal Rights

• Animal should not be used by humans
• The issues of animal welfare and animal rights
  date back thousands of years to the ancient Greeks

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Welfare vs Rights
Welfare
Rights

• No use whatsoever
• Radical activities including violence
• Usually vegetarians

• Involves good treatment of animals
• Less radical
• Supported by most animal producers and
  researchers