This summary of the history of beef grading in the US was done by members of the Animal Science department at Texas A&M University, showing it goes back a long way.
EARLY DAYS
After suggestions for grading going back to 1902, Congress appropriated funds for the USDA to study agricultural marketing and to establish the Office of Markets and Rural Organization in 1914. The result was a 1916 law establishing the National Livestock Market News Service, which needed a classification system for accurate market reporting.
Daily beef market reports began in 1917 using the first grading standards, which were improved and published in June 1923 to facilitate grading for the US Shipping Board and Veterans Bureau Hospitals. The 1924 US Agricultural Products Inspection and Grading Act followed, authorizing federal grading of livestock and meat.
Revised standards came in 1926 after public comment, followed by standards for classes and grades of slaughter cattle in 1928. These grades were a free, voluntary service for a one-year trial beginning in May 1927. Some packers implemented their own standards, but the USDA grading service eventually continued on a voluntary, fee basis.
WWII federal price controls made beef grading mandatory, and the practice was resumed in the Korean Conflict, and the standards were authorized by Congress in 1946.
CHANGES
In 1929, slaughter cattle grades changed lower cutter to canner. Beef grades were changed to give a single standard for steer, heifer and cow beef and changed medium, common and lower cutter to commercial, utility and canner.
In 1949, reference to fat color was eliminated, and in 1950, carcass beef standards were amended to lower quality requirements by one grade. Choice was moved into prime, good was moved into choice, and commercial was divided into two grades with the top half becoming good. Commercial was divided again in 1956 based on maturity, with the top half becoming standard.
Cutability grades came on a trial basis in 1962 and were adopted in 1965. Also in 1965, beef carcass quality grades were changed to place less emphasis on maturity in prime, choice, good and standard grades and to specify that all carcasses be ribbed prior to grading.
1975 brought changes in carcass grade standards.
–Maturity was eliminated for bullock, steer, heifer and cow beef in the youngest maturity group.
–Marbling requirements were increased for good grade in A maturity.
–Maximum maturity was reduced for steer, heifer and cow beef in good and standard grades to the same as that permitted in prime and choice grades.
–Conformation was eliminated from quality grade standards, and dual grading of graded beef was required, although these changes didn’t go into effect until 1976.
In 1987, the name of good was changed to select.
In 1989, yield grades and quality grades were uncoupled, allowing excess external fat to be removed and still be graded for quality.
Finally, in 1996, grades were changed so that B maturity carcasses with slight or small marbling could grade standard.
CATTLE, BEEF RECAP
Cash cattle traded in the Plains this week at $112 to $113 per cwt on a live basis, down $6 to $7 from last week. Dressed-basis trade took place last week at mostly $190, up $5 to $10.
The USDA choice cutout Wednesday was down $7.98 per cwt at $235.17, while select was down $3.18 at $225.13. The choice/select spread narrowed to $10.04 from $14.19 with 84 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Tuesday was $129.82 per cwt, down $1.28. This compares with Wednesday’s Apr contract settlement of $117.42, down $4.50.