96-1816. Standards for Grades of Slaughter Cattle and Standards for Grades of Carcass Beef  

  • [Federal Register Volume 61, Number 20 (Tuesday, January 30, 1996)]
    [Rules and Regulations]
    [Pages 2891-2898]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-1816]
    
    
    
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    Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / 
    Rules and Regulations
    
    [[Page 2891]]
    
    
    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Parts 53 and 54
    
    [No. LS-94-009]
    
    
    Standards for Grades of Slaughter Cattle and Standards for Grades 
    of Carcass Beef
    
    AGENCY: Agricultural Marketing Service (AMS), USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule revises the official U.S. standards for grades 
    of carcass beef and the related standards for grades of slaughter 
    cattle. The changes eliminate ``B'' maturity (approximately 30-42 
    months of age) carcasses with small or slight marbling degrees from the 
    Choice and Select grades and include them in the Standard grade. This 
    action is being taken because carcasses with these characteristics have 
    been shown to be both quite variable and often unacceptable in 
    palatability, which contributes significantly to inconsistent 
    palatability of Choice and Select grade beef. The standards for grades 
    of slaughter cattle, which are based on the beef carcass grades, are 
    revised to parallel the changes in the beef carcass grade standards. 
    This change should serve to strengthen the competitive position of beef 
    products through increased quality and consistency, and thus be in the 
    best interests of the beef industry. Also, it should provide the 
    consumer with an improved product through greater consistency and 
    predictability in the eating quality of Choice and Select grade beef. 
    The changes should provide the industry with long-term benefits because 
    pricing systems will be improved, quality inconsistencies will be 
    reduced, demand for beef will be improved, and the market share beef 
    commands should increase. These revisions are the same as those 
    proposed in the January 19, 1995, Federal Register (60 FR 3982).
    
    EFFECTIVE DATE: July 1, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Herbert C. Abraham, Chief, Livestock 
    and Meat Standardization Branch, Livestock and Seed Division, 
    Agricultural Marketing Service, U.S. Department of Agriculture, P.O. 
    Box 96456, Washington, D.C. 20090-6456, 202/720-4486.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        The Department of Agriculture is issuing this rule in conformance 
    with Executive Order 12866.
    
    Executive Order 12778
    
        This rule has been reviewed under Executive Order 12778, Civil 
    Justice Reform. This action is not intended to have retroactive effect. 
    This rule would not preempt any State or local laws, regulations, or 
    policies, unless they present an irreconcilable conflict with this 
    rule. There are no administrative procedures which must be exhausted 
    prior to any judicial challenge to the provisions of this rule.
    
    Regulatory Flexibility Act
    
        The Administrator, Agricultural Marketing Service (AMS), has 
    certified that this action will not have a significant economic impact 
    on a substantial number of small entities, as defined in the Regulatory 
    Flexibility Act, P.L. 96-345 (5 U.S.C. 601). The use of the beef 
    carcass and slaughter cattle grade standards is voluntary, and they are 
    applied equally to all size entities covered by these regulations. 
    Further, this action does not impose any new requirements or costs, it 
    only modifies the grade requirements to reflect modern production 
    practices. All entities can make needed management changes in response 
    to market signals. The action is expected to benefit the industry by 
    improving consumer satisfaction with beef products, and there should be 
    a positive impact on overall industry returns.
    
    Background
    
        Federal beef grading is a voluntary fee for service program, 
    provided under the Agricultural Marketing Act of 1946, as amended (7 
    U.S.C. 1621 et seq.). A primary purpose of the grades is to divide the 
    population of cattle and beef into uniform groups (of similar quality, 
    yield, value, etc.), in order to facilitate marketing. Grades provide a 
    simple, effective means of describing a product that is easily 
    understood by both buyers and sellers. By identifying separate and 
    distinct segments of a commodity, grades enable buyers to obtain that 
    particular portion of the entire range of a commodity which meets their 
    individual needs. At the same time, grades are important in 
    transmitting information to cattle producers so that more informed 
    production decisions can be made. For example, the market preference 
    for a particular grade of beef can be communicated to cattle producers 
    so they can adjust their production accordingly.
        When beef is voluntarily graded, the official grade consists of a 
    quality grade and/or a yield grade. The quality grades are intended to 
    identify differences in the palatability (eating satisfaction) of 
    cooked beef primarily through the combined characteristics of marbling 
    and maturity. The principal official USDA quality grades for young 
    (maturity groups A and B) cattle and carcasses are Prime, Choice, 
    Select, and Standard.
        In developing the grades, the Department has followed the 
    philosophy that, to be effective, beef grades should sort the supply of 
    beef carcasses into homogeneous groups having a sufficiently narrow 
    range of grade-determining factors so that carcasses within a given 
    grade are essentially interchangeable. Another major objective is to 
    provide as uniform and consistent product as possible within a given 
    grade.
    
    National Cattlemen's Association Petition
    
        In June 1994, the National Cattlemen's Association (NCA) petitioned 
    USDA to modify the beef quality grade standards by removing B-maturity 
    carcasses with small and slight marbling scores from the Choice and 
    Select grades and include such carcasses in the Standard grade. This 
    action was recommended by a NCA Carcass Quality Task Force which worked 
    for approximately 1\1/2\ years to develop specific recommendations for 
    the beef industry to win the ``war on fat,'' while enhancing beef 
    quality and consistency. The task force had broad representation 
    
    [[Page 2892]]
    from the cattle production and feeding sectors, as well as packers, 
    purveyors, and retailers. Several actions were recommended, but only 
    this particular recommendation related directly to the beef grade 
    standards.
        The NCA petition stated the modern beef animal today is typically 
    marketed at 12 to 15 months of age when fed as calves and 18 to 24 
    months of age when fed as yearlings. These modern animals are the 
    result of progressive breeders and feeders who produce faster growing, 
    more efficient cattle. If these animals receive proper care and 
    nutrition, they should have no difficulty producing carcasses in the A-
    maturity group. Carcasses of B-maturity are typically from cattle which 
    are 30 to 42 months of age when marketed.
        Research conducted for the Department by Texas A&M University 
    (Smith et al., 1984, Journal of Food Quality), using trained taste 
    panels, indicates that nearly 50 percent of the loin steaks from B-
    maturity carcasses with slight marbling, and over 30 percent of the 
    loin steaks from B-maturity carcasses with small marbling, are less 
    than satisfactory. These B-maturity carcasses significantly contribute 
    to the variability of palatability within the Select and Choice grades 
    and they do not epitomize the ``modern beef carcass.'' Permitting B-
    maturity carcasses with a small and slight degree of marbling to be 
    graded Choice and Select when they have been proven to be considerably 
    more variable in palatability than A-maturity carcasses with slight and 
    small marbling provides no incentives for the beef industry to decrease 
    production and marketing of cattle which do not conform to consumer 
    demand for quality and consistency.
        Although these cattle make up only a small percentage of the U.S. 
    fed beef supply, their variability in palatability can significantly 
    affect overall consumer satisfaction with beef. According to a national 
    beef quality audit conducted in 1991, B-maturity carcasses with slight 
    and small marbling made up about 4.8 percent of the fed-beef supply. 
    The beef industry processes approximately 26 million fed beef carcasses 
    annually. The estimated 4.8 percent of fed-beef affected by the 
    proposed grade change would represent approximately 1.3 million 
    carcasses. It is estimated that 42 percent of these carcasses would 
    have less than desirable palatability. This means over 500,000 
    carcasses with less than desirable palatability could be removed from 
    the Choice and Select grades, which should have a very positive effect 
    on consumer satisfaction with beef. The NCA believes producers can and 
    will respond quickly to the market signals that these ``older'' cattle 
    should be marketed at an age at which they can produce A-maturity 
    carcasses and thus produce beef that is more acceptable to consumers. 
    Such a shift in management could effectively eliminate most B-maturity 
    carcasses from the beef supply without negatively affecting overall 
    economic returns to the industry.
        The proposed change was seen as having a positive effect on the 
    marketing of Select grade beef. It would not only make the palatability 
    more consistent, but it would also make the nutritional profile more 
    consistent by removing from the Select grade, B-maturity carcasses 
    which have higher amounts of fat due to the higher marbling level 
    (small in B-maturity compared to slight in A-maturity) required for 
    these carcasses to qualify for Select. This makes the Select grade more 
    uniform in both fat content and consistency of palatability and enhance 
    its acceptance by consumers who desire leaner beef. Since the U.S. Good 
    name was changed to U.S. Select in 1987 (52 FR 35679), the percentage 
    of Select graded beef has steadily increased, and in FY 93, 33.6 
    percent of graded steer and heifer beef was Select.
        The NCA recommendation stated it was submitted to aid the beef 
    industry in producing a higher quality, more consistent beef product 
    under the Choice and Select grades. Eliminating B-maturity carcasses 
    will allow market forces to further discourage the production of cattle 
    which do not conform to consumers desire for tender, tasty beef 
    products. The modern beef animal raised using modern breeding and 
    feeding technology should have no trouble producing a carcass of A-
    maturity. The small proposed modification to the standards will 
    strengthen consumer confidence in using grades to identify quality and 
    consistency when purchasing beef.
    
    Proposed Standards
    
        The Department carefully evaluated the recommendation and concurred 
    that the suggested changes should improve consumer satisfaction with 
    the Choice and Select grades and thus strengthen the competitive 
    position of beef in the marketplace while aiding the beef industry in 
    its objective of providing more palatable, consistent beef to 
    consumers.
        Therefore, it was proposed that the beef carcass standards be 
    revised to eliminate B-maturity (approximately 30-42 months of age) 
    carcasses with small or slight marbling degrees from the Choice and 
    Select grades and reduce their grade to Standard.
        It was also proposed that the standards for grades of slaughter 
    cattle, which are based on the beef carcass grade standards, be revised 
    to reflect the changes proposed for the beef carcass grade standards. 
    Grades of slaughter cattle are intended to be directly related to the 
    grades of the carcasses they produce.
    
    Comments
    
        A 90-day comment period, which closed on April 19, 1995, was 
    provided for submission of comments. The official number of comments 
    submitted prior to the close of the comment period was 403. In 
    addition, approximately 65 comments were received which were submitted 
    after the close of the comment period. These 65 comments expressed 
    essentially the same views as the 403 comments submitted in a timely 
    manner. All submitted comments are part of the public record on the 
    proposed change and are available for public review. The comments were 
    divided into several groups (sectors) representing segments of the 
    production and consumption chain with similar interests. The comments 
    were also classified as being submitted by an individual or an 
    organization. The distribution of comments by these categories is shown 
    in Table 1.
        The percentage support/opposition for the proposed change by source 
    and classification (i.e., individual or organization) is shown in Table 
    2. Over 70 percent of the comments from both individuals and 
    organizations supported the proposed change. The proposed change was 
    strongly supported by the purveyor and processor, retail and 
    restaurant, consumer, government, and academia sectors. Of the comments 
    from these sectors, only two individual comments were opposed to the 
    proposed changes. The strongest opposition to the proposed changes was 
    from the cattle feeding, cattle marketing, and the packer sectors. All 
    comments from packers, all but one comment from the cattle marketing 
    sector, and a majority of cattle feeders were opposed to the proposed 
    changes. While the majority of cattle feeding and marketing sector 
    comments were opposed, if they are combined with the comments from the 
    cattle production sector, a large majority of comments from both 
    organizations (71.4%) and individuals (63.0%) representing cattle 
    interests (production, feeding, and marketing) supported the proposed 
    change.
    
    [[Page 2893]]
    
    
                        Table 1--Distribution of Comments                   
    ------------------------------------------------------------------------
                Source              Organizations\1\  Individuals\2\   Total
    ------------------------------------------------------------------------
    Cattle production.............            27              171        198
    Cattle Feeding................             4               96        100
    Cattle Marketing..............             3                8         11
    Packer........................             2                4          6
    Purveyor and processor........             2               17         19
    Retail and Restaurant.........             1                6          7
    Consumer......................             0               34         34
    Government....................             0                5          5
    Academia......................             0               15         15
    Other.........................             0                8          8
                                   -----------------------------------------
          Total...................            39              364       403 
    ------------------------------------------------------------------------
    \1\Includes comments of state, regional, and national organizations.    
    \2\Includes comments of individuals, comments with multiple signers, and
      businesses.                                                           
    
    
                   Table 2.--Comments in Favor of or Opposed To Adoption of USDA Proposed Changes.\1\               
    ----------------------------------------------------------------------------------------------------------------
                                                                     Favor                  Oppose                  
                             Source                         ----------------------------------------------   Total  
                                                               Number     Percent     Number     Percent            
    ----------------------------------------------------------------------------------------------------------------
    Cattle Production:                                                                                              
      Individuals\2\.......................................        131        77.1         39        22.9        170
      Organizations........................................         25        92.6          2         7.4         27
    Cattle Feeding:                                                                                                 
      Individuals\2\.......................................         40        42.1         55        57.9         95
      Organizations........................................          0         0            4       100.0          4
    Cattle Marketing:                                                                                               
      Individuals..........................................          1        12.5          7        87.5          8
      Organizations........................................          0         0            3       100.0          3
    Packer:                                                                                                         
      Individuals..........................................          0         0            4       100.0          4
      Organizations........................................          0         0            2       100.0          2
    Purveyor and Processor:                                                                                         
      Individuals..........................................         16        94.1          1         5.9         17
      Organizations........................................          2       100.0          0         0            2
    Retail and Restaurant:                                                                                          
      Individuals..........................................          6       100.0          0         0            6
      Organizations........................................          1       100.0          0         0            1
    Consumer:                                                                                                       
      Individuals\2\.......................................         32        97.0          1         3.0         33
      Organizations........................................          0        --            0        --            0
    Government:                                                                                                     
      Individuals..........................................          5       100.0          0         0            5
      Organizations........................................          0        --            0        --            0
    Academia:                                                                                                       
      Individuals\2\.......................................         14       100.0          0         0           14
      Organizations........................................          0        --            0        --            0
    Other:                                                                                                          
      Individuals..........................................          7       100.0          0         0            7
      Organizations........................................          0        --            0        --            0
                                                            --------------------------------------------------------
          Total............................................        280        70.2        119        29.8        399
            Individuals....................................        252        70.0        108        30.0        360
            Organizations..................................         28        71.2         11        28.2        39 
    ----------------------------------------------------------------------------------------------------------------
    \1\Includes all written comments except 4 which were nonresponsive or noncommittal regarding the proposed       
      changes.                                                                                                      
    \2\One comment from this source was nonresponsive or noncommittal regarding the proposed changes.               
    
        Comments in favor of the change strongly supported the removal of 
    B-maturity carcasses with small and slight marbling from the Choice and 
    Select grades. The proposed change was seen by many commenters as an 
    opportunity to improve the overall quality of beef from these grades by 
    removing a group of carcasses which only comprise a small percentage of 
    the fed-beef supply, but contribute significantly to beef with less 
    than desirable eating satisfaction for consumers. These commenters 
    indicated that removal of a group of carcasses of which up to 
    approximately 50 percent may produce an inconsistent, variable product 
    which provides consumers with a less than desirable eating experience 
    was a first step toward restoring consumer confidence and market share 
    which has been eroding over the last several years. These comments 
    expressed the view that any group of carcasses with this degree of 
    variability should not be allowed in the Choice and Select grades if 
    the industry is serious in its desire to be consumer driven.
        Many supporters of the proposed change, including several from the 
    academic sector, stated the scientific evidence strongly supports the 
    proposed changes. These comments supported the conclusions of the NCA 
    task force which concluded the scientific evidence supported the 
    proposed changes. These studies indicated variability and inconsistency 
    of palatability of beef with small and slight marbling in B-maturity 
    was much greater than comparable levels of marbling in A-maturity, even 
    though some data did not indicate significant differences in overall 
    palatability. The high degree of inconsistency was cited by many 
    
    [[Page 2894]]
    comments from the cattle production and feeding sectors as a situation 
    which must be corrected. Consumption sectors (consumer, purveyor and 
    processor, retail and restaurant) were also very concerned over product 
    which failed to meet consumer desires. Supporters of the proposed 
    changes postulated that few successful businesses would choose to do 
    nothing if they found a product line with up to 50 percent customer 
    dissatisfaction.
        Many comments from cattle sectors and academia expressed the belief 
    that a large majority of B-maturity carcasses are the result of 
    management decisions that can be modified by the industry. Further, 
    these comments stated that by sending a strong market signal that these 
    cattle will not be included in the Choice and Select grades, management 
    decisions can be made that will eliminate a large number of them from 
    the fed-beef supply. Many supporters as well as opponents of the 
    proposed changes indicated many B-maturity carcasses are from older 
    ``Mexican feeders'' or first or second-calf heifers. Supporters 
    strongly believed these management practices could be modified and were 
    against allowing these types of cattle to be included in the same 
    grades as properly managed, A-maturity cattle. Several cattle producers 
    and/or feeders indicated they had taken advantage of the system that 
    allowed these types of cattle to be included in the Choice and Select 
    grades, but feel it is now time to take a positive step with long-term 
    benefits in mind to improve the quality and consistency of beef.
        Comments from cattle feeders, producers, and marketers which 
    opposed the changes often stated the belief that there would be a 
    significant negative economic impact. Estimates of over $100 million 
    annually in lost revenue were predicted by some of these commenters. 
    Similarly, comments from the packer sector indicated a projected 
    reductions of $20 million to $78 million in revenue annually. These 
    estimates were generally based solely on projected losses in value due 
    to decreasing the grade of the affected B-maturity carcasses from 
    Choice and Select to Standard. Some feeders and producers were 
    concerned that the changes would simply be used by packers as an 
    opportunity to further discount cattle, who would then pass the beef 
    through the system as ``no-roll'' product that would not be discounted 
    appropriately, thus providing an economic windfall for packers. These 
    commenters also believed the beef targeted by the change would not be 
    eliminated from the beef supply, but would simply be marketed in a 
    different manner.
        Several of the comments opposed to the changes expressed the 
    concern that the changes ``unfairly penalized'' the approximately 50 
    percent of the affected B-maturity carcasses which are considered to 
    produce ``desirable'' product. As discussed previously, supporters of 
    the proposal believed any dissatisfaction level of this magnitude was 
    extremely detrimental to consumer acceptance of beef. Several of the 
    comments from cattle producers and feeders also expressed concern that 
    the proposed changes would unfairly penalize operations that grazed 
    older yearling cattle or fed ``older Mexican'' cattle or 1st or 2nd-
    calf heifers. These comments suggested that these cattle would be 
    severely discounted in the market and would severely affect their 
    production and marketing.
        Some comments from the packing and cattle feeding sectors 
    questioned the interpretation of the research considered in developing 
    the proposal which indicated higher variability in palatability of B-
    maturity carcasses. A few of these comments indicated some studies 
    showed beef of B-maturity to be similar to A-maturity beef in overall 
    palatability. Two studies (National Consumer Retail Beef Study-1986 and 
    Beef Customer Satisfaction-1994) were cited by a few commenters as 
    showing consumers do not regard fed-beef as having palatability 
    problems.
    
    Evaluation of Comments
    
        Supporters of the changes indicated the approximately 50 percent of 
    B-maturity carcasses with less than desirable palatability have a 
    significant negative impact on consumer satisfaction with beef. Many 
    opponents of the changes did not disagree with the evidence of 
    palatability problems in up to 50 percent of B-maturity carcasses. 
    However, these commenters believed the remaining 50 percent of B-
    maturity carcasses would be ``unfairly discounted'' under the proposal. 
    Even though it would be preferable to not exclude the approximately 50 
    percent of carcasses in B-maturity which have desirable eating 
    satisfaction from the Choice and Select grades, no method for 
    distinguishing these carcasses from those with undesirable eating 
    satisfaction is currently available. Although these B-maturity 
    carcasses with less than desirable palatability represent a relatively 
    small portion of the fed-beef supply, AMS recognizes that the negative 
    impact they can have on consumer satisfaction with Choice and Select 
    beef supports their exclusion from these grades. AMS also has carefully 
    reevaluated the supporting scientific evidence which compares the 
    palatability of A and B-maturity beef and concludes there is strong 
    evidence of greater variability of eating quality in B-maturity beef 
    than in A-maturity beef. While some opponents of the proposed changes 
    questioned some of the evidence, most of the comments (including 
    several from opponents of the changes) supported the evidence. The two 
    studies (National Consumer Retail Beef Study-1986 and Beef Customer 
    Satisfaction-1994) cited by some opponents as evidence that the changes 
    should not be made evaluated only A-maturity carcasses, B-maturity 
    carcasses were not included in these studies. In addition to the 
    scientific evidence, the very strong support for the proposed changes 
    from the consumption sectors (purveyor, processor, retail, restaurant, 
    and consumer) indicates that consumers desire a more consistent, less 
    variable eating experience from beef products. The need for improved 
    consumer satisfaction is evident, and this action should provide the 
    industry with an opportunity to eliminate a source of beef from the 
    Choice and Select grades that has been shown to be much more variable 
    in palatability than A-maturity beef.
        Commenters who both supported and opposed the proposed changes 
    indicated several management practices which contribute to the 
    production of B-maturity carcasses. These include feeding of ``older 
    Mexican'' cattle and 1st and 2nd-calf heifers. While these types of 
    cattle are not the only source of B-maturity carcasses, they 
    potentially are a significant source. AMS believes these comments 
    support the ability of the industry to identify many sources of B-
    maturity carcasses and either alter management practices to prevent 
    their production as fed-beef or to merchandize them according to their 
    value in the marketing system. Beef produced from such management 
    systems cannot be properly marketed with beef produced from young, fed-
    cattle under 30 months of age because of the variability they introduce 
    into the Choice and Select grades.
        A few comments from ``stocker'' operators were concerned the 
    changes would cause their cattle which are grazed up until about 20 
    months of age and leave the feedlot at about 23-24 months to be 
    discounted because they would produce B-maturity carcasses. There is no 
    evidence to indicate these cattle when properly managed and marketed 
    would not produce A-maturity carcasses (approximately 30 months of 
    age). 
    
    [[Page 2895]]
    
        Supporters of the grade change generally indicated a belief that 
    the proposed changes would have a beneficial long-term impact on the 
    industry, but provided no monetary figures. Much of the opposition to 
    the proposed changes was due to potential negative economic impact. 
    Some opponents of the changes provided estimates of negative economic 
    impact on the industry from $20 million to over $100 million annually. 
    Because of the wide variation in the type and magnitude of the 
    predicted impacts expressed by commenters, AMS concluded an independent 
    economic study would better enable AMS to most effectively evaluate the 
    proposed changes. AMS contracted with Dr. Wayne Purcell, Director, 
    Research Institute on Livestock Pricing, Virginia Tech University, to 
    conduct an independent economic analysis. Dr. Purcell is widely 
    accepted by the industry as an authority on livestock marketing. His 
    analysis has been made part of the public record on the proposed 
    changes.
        The economic impact study found if management strategies are not 
    changed and the same number of B-maturity carcasses continue to be 
    produced, a short-run negative impact on the industry of -$21 million 
    could be projected. These immediate costs come from the reduced prices 
    of B-maturity carcasses that are in the pipeline and from the price 
    depressing influence of an increase in ungraded and processing beef as 
    these carcasses are marketed. However, if management strategies are 
    improved to eliminate even 25 percent of these B-maturity carcasses, a 
    positive impact of $86 million would occur, and if 50 percent are 
    eliminated due to management, a positive impact of $194 million would 
    occur over an adjustment period of about 18 months. If credit is given 
    to longer term benefits coming from improved demand as some of the 
    quality inconsistency is eliminated, the benefits to the industry could 
    easily exceed $1.0 billion across the next 10 years. This study 
    concluded the benefits to the whole industry far outweigh short-run 
    adjustments. Longer term, it concluded the entire industry would 
    benefit because of improved pricing systems, reduction of quality 
    inconsistencies, improved demand for beef, and a larger market share 
    for beef.
        AMS concludes that the industry can utilize improved management 
    strategies to eliminate a portion of B-maturity carcasses from the fed-
    beef supply. AMS also concludes the economic impact study provides the 
    most reliable indication of potential economic impacts from the 
    changes. The projected negative impacts provided by some commentors 
    generally only accounted for the decrease in value of the B-maturity 
    carcasses which would not grade Choice or Select after the grade 
    change. The commentors did not account for price-related benefits, 
    improved consumer demand, or changes in the supply/demand price 
    relationship for Choice and Select beef after removal of B-maturity 
    carcasses. Many comments indicated producers and feeders have the 
    ability to identify and manage differently cattle types which 
    contribute significantly to production of B-maturity carcasses. What 
    percentage of B-maturity carcasses will be eliminated and over what 
    time period is difficult to predict. However, based on the comments and 
    other information, it is reasonable to assume that improved management 
    strategies will enable the industry to achieve a 25 percent reduction 
    in the number of B-maturity carcasses in the first or second year of 
    the change, if an adjustment period is provided prior to implementation 
    of the change. A 25 percent reduction would enable the industry to 
    realize the net benefits projected by the economic study of $86 million 
    over the eighteen months following implementation of the change by 
    removing an identifiable source of inconsistent quality from the Choice 
    and Select grades and the fed-beef supply.
        In consideration of the public comments submitted in response to 
    the proposed rule of January 19, 1995 (60 FR 3982-3986), and all other 
    available information, USDA adopts the proposed rule to revise the 
    official U.S. standards for grades of carcass beef and the related 
    standards for grades of slaughter cattle by eliminating ``B'' maturity 
    (approximately 30-42 months of age) carcasses with small or slight 
    marbling degrees from the Choice and Select grades and including them 
    in the Standard grade. However, in order to allow the industry time to 
    adjust its production and marketing practices and to market beef 
    currently in the pipeline, implementation will be delayed until July 1, 
    1996.
    
    List of Subjects
    
    7 CFR Part 53
    
        Cattle, Hogs, Livestock, Sheep.
    
    7 CFR Part 54
    
        Food grades and standards, Food labeling, Meat and meat products.
    
        For the reasons set forth in the preamble, 7 CFR Part 53 and 7 CFR 
    Part 54 are amended as follows:
    
    PART 53--LIVESTOCK (GRADING, CERTIFICATION, AND STANDARDS)
    
        1. The authority citation for Parts 53 and 54 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1621-1627.
    
        2. In Sec. 53.203, paragraph (b) (3) is revised to read as follows:
    
    
    Sec. 53.203  Application of standards for grades of slaughter cattle.
    
    * * * * *
        (b) * * *
        (3) The approximate maximum age limitation for the Prime, Choice, 
    and Standard grades of steers, heifers, and cows is 42 months. The 
    maximum age limitation for the Select grade for steers, heifers, and 
    cows is approximately 30 months. The Commercial grade for steers, 
    heifers, and cows includes only cattle over approximately 42 months. 
    There are no age limitations for the Utility, Cutter, and Canner grades 
    of steers, heifers, and cows. The maximum age limitation for all grades 
    of bullocks is approximately 24 months.\1\
    
        \1\Maximum maturity limits for bullock carcasses are the same as 
    those described in the beef carcass grade standards for steers, 
    heifers, and cows at about 30 months of age. However, bullocks 
    develop carcass indicators of maturity at younger chronological ages 
    than steers. Therefore, the approximate age at which bullocks 
    develop carcass indicators of maximum maturity is shown herein as 24 
    months rather than 30 months.
    ---------------------------------------------------------------------------
    
    * * * * *
        3. In Sec. 53.204, paragraph (c) (1) is revised to read as follows:
    
    
    Sec. 53.204  Specifications for official U.S. standards for grades of 
    slaughter steers, heifers, and cows (quality).
    
    * * * * *
        (c) Select. (1) The Select grade is limited to steers, heifers, and 
    cows with a maximum age limitation of approximately 30 months. 
    Slaughter cattle possessing the minimum qualifications for Select have 
    a thin fat covering which is largely restricted to the back and loin. 
    The brisket, flanks, twist, and cod or udder are slightly full and the 
    muscling is slightly firm.
    * * * * *
    
    PART 54--MEATS, PREPARED MEATS, AND MEAT PRODUCTS (GRADING, 
    CERTIFICATION, AND STANDARDS)
    
        4. Section 54.104 is revised by removing the word ``Select'' in 
    paragraph (n), revising the third and fifth sentences in paragraph (o) 
    and revising Figure 1 in paragraph (o) to read as follows:
    
    
    Sec. 54.104  Application of standards for grades of carcass beef.
    
    * * * * * 
    
    [[Page 2896]]
    
        (o) * * * The Prime, Choice, Select, and Standard grades are 
    restricted to beef from young cattle; the Commercial grade is 
    restricted to beef from cattle too mature for Prime, Choice, and 
    Standard; and the Utility, Cutter, and Canner grades may include beef 
    from animals of all ages. * * * Except for the youngest maturity group 
    and the Choice grade in the second maturity group, within any specified 
    grade, the requirements for marbling increase progressively with 
    evidences of advancing maturity. * * *
    
    BILLING CODE 3410-02-P
          
    
    [[Page 2897]]
        [GRAPHIC][TIFF OMITTED]TR30JA96.006
        
    
    
    BILLING CODE 3410-02-C
    
    [[Page 2898]]
    
    * * * * *
        5. Section 54.106 is amended by revising the third sentence in 
    paragraph (b) (3), revising paragraphs (c) (1) and (c) (2) and removing 
    paragraph (c) (3) as follows:
    
    
    Sec. 54.106  Specifications for official United States standards for 
    grades of carcass beef (quality-steer, heifer, cow).
    
    * * * * *
        (b) * * *
        (3) * * * In carcasses throughout the range of maturity included in 
    this group, a minimum modest amount of marbling is required (see Figure 
    1) and the ribeye muscle is slightly firm.
        (c) Select (1) For carcasses throughout the range of maturity 
    permitted in the Select grade, the minimum degree of marbling required 
    is a minimum slight amount (see Figure 1) and the ribeye may be 
    moderately soft.
        (2) Carcasses in the maturity group permitted range from the 
    youngest that are eligible for the beef class to those at the juncture 
    of the two youngest maturity groups, which have slightly red and 
    slightly soft chine bones and cartilages on the ends of the thoracic 
    vertebrae that have some evidence of ossification. In addition, the 
    sacral vertebrae are completely fused and the cartilages on the ends of 
    the lumbar vertebrae are nearly completely ossified. The rib bones are 
    slightly wide and slightly flat and the ribeye muscle is slightly light 
    red in color and is fine in texture.
    * * * * *
        Dated: January 25, 1996.
    Kenneth C. Clayton,
    Acting Administrator.
    [FR Doc. 96-1816 Filed 1-26-96; 11:27 am]
    BILLING CODE 3410-02-P
    
    

Document Information

Effective Date:
7/1/1996
Published:
01/30/1996
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-1816
Dates:
July 1, 1996.
Pages:
2891-2898 (8 pages)
Docket Numbers:
No. LS-94-009
PDF File:
96-1816.pdf
CFR: (4)
7 CFR 53.203
7 CFR 53.204
7 CFR 54.104
7 CFR 54.106