Understanding Carcass EPDs and Influence on Carcass Prices - by Ryan Boldt

Understanding traits and how they affect carcass prices is an important consideration for all commercial producers. Traditionally, approximately 20-25% of females are retained as replacements, so much of each calf crop enters a terminal system. It’s no surprise that a common goal is to continually improve end product merit to allow for a more marketable calf crop.

However, it’s sometimes fuzzy on what each carcass EPD predicts and how that factors into the ultimate price received when cattle are hanging on the rail. The results you will see are determined by multiple factors. These include the animal’s genetics, as well as the environment the animal experiences. What this boils down to is that to receive a favorable result, both factors need to work together to achieve results that are worthy of bragging about.

Carcass Weight One factor that determines price is carcass weight. The more pounds that are produced, the higher the return. However, it’s important to remember that plants and grids impose penalties for carcasses that are heavy or light. Based on USDA data, carcasses greater than 1,000 pounds will receive discounts and carcasses more than 1,050 pounds will receive steep discounts. So, the goal for carcass weights is to target a weight that fits into the parameters where discounts can be avoided for extreme carcasses.

Carcass Yield A second factor that determines carcass price is carcass yield. This is determined via the USDA yield grade equation. This equation contains components related to back fat, kidney, pelvic and heart fat thickness, carcass weight

and rib eye area. These components are combined using a mathematical formula to calculate the yield grade for the carcass. For this component, a Yield Grade of 3 serves as the base. Animals that fall into a Yield Grade 3 will not receive any premiums or discounts. From there, animals that receive Yield Grades of 1 and 2 are given premiums while animals that receive Yield Grades of 4 and 5 receive discounts.

Quality Grade Another major factor that determines carcass value is the animal’s quality grade. The quality grade represents the amount of marbling present in the rib eye when it is harvested. For this parameter, a quality grade of Choice with a marbling score of Small serves as the base for the comparisons. From there are two other subcategories of Choice which include Modest and Moderate. Some grids pay significant premiums for animals that receive these marbling grades. Three marbling grades fall into Prime: Slightly Abundant, Moderately Abundant and Abundant. Below Choice, there are two categories which are known as Select and Standard which have marbling scores or Slight, Traces and Practically Devoid. These categories receive discounts compared to the base.

EPD Significance Now that some of the factors that determine differences in carcass pricing have been identified, how can EPDs help? An EPD helps to move the average performance of a calf crop in a desired direction. RAAA currently publishes five EPDs that help identify genetic differences in genetic merit for carcass traits. These EPDs include Marbling (MARB), Yield Grade (YG), Carcass Weight (CW), Rib Eye Area (REA) and Back Fat (BF). Each of these EPDs can help move the next generation in a more favorable direction for the desired traits.

Assume that your last calf crop was harvested on a grid, and you received data back that determined the average quality grade of the group was at the base or Choice with a Small marbling score. You are interested in improving this trait so that your next calf crop can gain more premiums for the higher quality grade categories. For this situation, the Marbling EPD will be useful because it will move that trait. However, an EPD will not tell you what result you will get. A particular EPD does not correspond to a specific Marbling Score outcome. The only way for this to be useful is that EPD needs to be compared to another EPD.

One method to do this would be to take the average of your current bull battery and as you pick your next group of bulls, you identify animals that will improve the average of the bulls for that trait. This EPD is expressed in terms of the numerical marbling score associated with each of the different quality grade categories. Comparing these differences can provide insights into what the change of the average marbling score would be if a bull with a higher marbling score was used given equivalent environments.

It should be mentioned that single trait selection, like this example, is never the ideal approach to genetic improvement. Among traits, genetic relationships exist. Selecting solely for a single trait may lead to unintended consequences in other traits. A better approach is to use selection indexes to identify animals that excel in numerous traits and then identify animals that fit your particular breeding objective. •

Rib eye area affects both quality and yield grade scores.

Carcass ultrasound data contributes to the accuracy of EPDs.

Quality grade represents the amount of marbling in the rib eye.

The more carcass weight, the higher the return as long as the carcass doesn’t exceed 1,000 pounds.