Effects of USDA feeder cattle frame and muscle grades on stocker and feeder cattle performance and profitability

A total of 395 calves (180 ± 25 kg) were purchased from sale barns in Oklahoma and Texas in the fall of 3 consecutive years to measure the effect of USDA feeder cattle frame and muscle grades on performance and profitability. Individual purchase weight and price were recorded, and steers were assigned USDA feeder cattle grades of Large (LG), Medium (MED), or Small (SM) frame size and Number 1 or Number 2 muscle thickness by the same official USDA market graders. Steers were grazed on rye pasture and were then valued by commercial order buyers in frame and muscle grade groups. Muscle grade did not affect (P > 0.60) animal performance or profitability during the grazing phase. Grazing ADG increased linearly (P < 0.001) as frame grade increased, but purchase price was lower (P < 0.001) for SM steers than for MED and LG frame steers, respectively, resulting in greater (P < 0.001) grazing-phase net returns for SM steers. Following finishing on a high-concentrate diet, the lesser total weight gain during finishing of SM steers (P < 0.001) resulted in lesser per animal revenue. Feed and interest costs were also less (P < 0.001) and marbling score greater (P < 0.001) for SM steers, resulting in greater finishing net returns and carcass price. In a post hoc analysis in which frame and muscle grades were reassigned to cattle based on HCW and LM area, only 44% of the cattle remained in their original grade.