Grid pricing boosts quality benefits in cattle industry

By Scout Nelson

Grid pricing, a method that considers factors like meat grade, weight, and special labels, has improved cattle pricing. This pricing model is often bundled with marketing deals with packers, which set a starting price and then add bonuses or deductions based on the cattle's final evaluation.

Why the change? Schroeder points out it's all about meeting people's preference for top-notch beef, connecting what people like with what producers grow. And it's working! The numbers show that cattle producers are getting stronger signals about what's valuable, leading to major shifts in the industry.

Katy Doumit, a student working with Schroeder, shares some impressive facts. In the last two decades, there's been a big jump in the amount of high-grade beef, from 55% to over 80%. That's good news for everyone – people shopping for beef and the folks raising cattle.

But it's not just about following a trend. Schroeder advises producers to really get to know the different pricing grids and see what fits best with their way of raising cattle. It's about knowing what you're good at and finding a grid that matches your strengths. That way, you're not just reaching for the stars but also working with what you have, which could mean more money in your pocket.

The new pricing system for cattle is improving the situation for all parties involved, including producers, and it may be time to start searching for the perfect grid match.

Photo Credit: gettyimages-pamwalker68