LUBBOCK, TEXAS (RFD NEWS) — More beef is grading Prime, changing price spreads and quality signals for cattle producers. Texas A&M economist Dr. David Anderson says Prime beef has more than doubled its share of Select grades during the past two months.
More than 17 percent of graded beef reached Prime in five of the last six weeks. Select averaged 8.2 percent over the same period. Last year, Prime averaged 13 percent, and Select averaged 12 percent.
Anderson says value-based marketing, longer days on feed, heavier finished weights, and strong demand for higher quality beef have encouraged more Prime production. Choice remains mostly steady at about 71.7 percent of graded beef.
As Prime supplies grow, premiums have narrowed. The Prime-Choice boxed beef spread averaged $13.16 per hundredweight over the last six weeks, down from $21.97 last year.
Even with lower total beef production, Prime pounds can still exceed year-earlier levels. In March, Prime beef availability was up 20.5 percent from last year.
