End Meat Value Rises
Chuck edges out rib for total CAB value add.
As we discuss the additive nature of carcass value in terms of the entire carcass, it’s important to realize that the quality spreads — Choice-Select, Certified Angus Beef ® (CAB®) brand-Choice, etc. — are not equal across the primals and subprimals. The middle meats capture all of the glory as ribs, strips and tenderloins are the focus of the typically higher-priced cuts. However, after the market assigns values to each of the subprimal cuts, the contribution to total carcass value may be surprising.
One of our objectives at CAB is to add value to the whole carcass, not just the middle meats.
One of our objectives at CAB is to add value to the whole carcass, not just the middle meats. That has been achieved to the degree that CAB branded product carries a premium on many end-meat subprimals where Choice and Select are priced the same.
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Some may be surprised to learn that the CAB premium on a chuck primal contributes more to the total carcass value than does the CAB rib premium. On a price-per-hundredweight (cwt.) basis, it’s no contest. The CAB rib is $14.08 per cwt. pricier than the Choice rib, whereas the CAB chuck carries just a $5.71-per-cwt. premium to Choice. The chuck is the heaviest of the carcass primals, representing 29.6% of total carcass weight, while the rib is just 11.4% of the carcass.
The bottom line is that weight matters when it comes to total carcass value. The resulting total CAB premium above Choice from the CAB chuck so far in 2019 has been $15.21 per head (assuming a 900-pound carcass) vs. the CAB rib premium contribution of $14.45 per head.
Editor’s note: Paul Dykstra is a beef cattle specialist with CAB. Read more of Dykstra’s biweekly comments in the CAB Insider at http://bit.ly/CABInsider814.
