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Beef Grading and Imperfect Competition

  • V. James Rhodes
Extract

In September 1974, the U.S. Department of Agriculture announced that it planned to make major changes in its grading of beef. The changes would redefine criteria for eating quality, particularly requiring less marbling for each grade.

The announcement was strategically timely: consumers had been restive over what they regarded as high prices for beef, while the poor 1974 corn crop made it economical to produce less fat in the beef carcass. Moreover, meat, packers and many cattle feeders had been demanding a grade revision which would permit shorter feeding, less waste fat and lower prodduction costs.

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[1] Alsmeyer, R.H., et.al. “The Relative Significance of Factors Influencing and/or Associated with Beef Tenderness,” Proceedings, 11th Research Conference, American Meat Institute Foundation.
[2] Butler, O.D.Type and Quality in Live Animal and in the Carcass”, Paper given at National Beef Industry Conference, Purdue, 1959.
[3] Calf News, Monthly trade journal published in Tarzana, California, September, 1974.
[4] Calf News, January 1974.
[5] Calf News, August 1974.
[6] Cramer, Charles L. et.al. An Analysis of Retail Yield of Beef Carcasses, Missouri Agricultural Experiment Station Research Bulletin No. 858, April 1964.
[7] Juillerat, M.E., et.al. Consumer Preference for Beef as Associated with Selected Characteristics of the Meat, Virginia Polytechnic Institute Research Division Bulletin 72, 1972.
[8] Parrish, F.C. Jr.Relationship of Marbling to Meat Tenderness,” Iowa State Journal Paper No. J-7869, Proceedings of the Meat Industry Research Conference, 1974.
[9] Peterson, Robert. “The Price-Perceived Quality Relationship: Empirical Evidence,” Journal of Marketing Research, Nov. 1970, pp. 525-28.
[10] Pierce, John C.Federal Beef Grade Standards,” Statement before the House Agriculture Subcommittee on Livestock and Grains, July 25, 1974.
[11] Pierce, J.C., et.al. “Some Factors Influencing Yields of Wholesale and Retail Cuts from Beef Carcasses,” Paper given at American Society of Animal Production, 1956.
[12] Purcell, Wayne D.Pressures for Change in the Beef Grades,” Calf News, August 1973.
[13] Rhodes, V. James. “How the Marking of Beef Grades Was Obtained,” Journal of Farm Economics, Feb. 1960, pp. 133-49.
[14] Rhodes, V. James. “Acceptance and Yield of Choice and Good Beef: Research Results and Implications,” Journal of Farm Economics, May 1961, pp. 181196.
[15] Rhodes, V. James, et.al. Variations in Consumer Acceptability of Loins from Market Lots of Cattle, Missouri Agricultural Experiment Station Research Bulletin No. 848, Feb. 1964.
[16] Scitovsky, Tibor. Welfare and Competition, Rev. Ed., Homewood, Illinois: R.D. Irwin, 1971, Ch. 23.
[17] Supermarket News. “ Kroger Launching Low-End Beef Plan”, September 23, 1974.
[19] USDA-AMS. Notice of Proposal to Change Standards for Beef Grades (7 CFR Part 53), September 10, 1974.
[20] USDA- AMS. Official United States Standards for Grades of Carcass Beef.
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Journal of Agricultural and Applied Economics
  • ISSN: 1074-0708
  • EISSN: 2056-7405
  • URL: /core/journals/journal-of-agricultural-and-applied-economics
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