How to Sell Feeder Cattle on a Grid

When feeder cattle are sold on a grid, packing plants are the purchaser and pricing is based on carcass value. United States Department of Agriculture (USDA) yield and quality grades are used to assess carcass value. USDA yield grade is determined by fat thickness at the 12th rib; the weight of kidney, pelvic and heart fat; the carcass weight; and the ribeye area. The degree of marbling and an animal's maturity determine USDA quality grade.

Instructions

    • 1

      Assemble uniform (same type, same age) "load lots" of cattle and contract with a feedlot for custom feeding. Load lots are enough cattle to fill a semi-truck trailer, which is normally 45,000 to 50,000 pounds of cattle or about 80 feeder calves. If your operation is not large enough to produce 80 calves at one time, form a co-op with neighbors and other ranchers in the area to raise the same type of calves and pool them into a load lot.

    • 2

      Select breeding stock that will produce calves of near equal size, color and conformation and calves with good feed-conversion capabilities. Calves uniform in appearance are valued higher than calves of assorted types. Animals that have the ability to efficiently convert feed to pounds of beef do well in the feedlot.

    • 3

      Scan breeding stock with ultrasound equipment to determine the carcass traits they will pass to their offspring. Carcass traits measured by ultrasound are 12th-rib fat thickness, rump fat thickness, ribeye area and intramuscular fat percentage or marbling. Cull cattle that don't possess desired carcass traits.