Proposed New U.S Grade System
The USDA has proposed a new pork grade system, where new categorises are proposed: Prime, Chioce and Select. An article on the Food Marketing Institute (FMI) Website by Rick Stein, Vice President of Fresh Foods FMI captures the essence of retailer’s desire to see a new grade system that identifies Pork taste and flavor attributes.
Can Consistent Quality Drive Repeat Pork Sales?
Rick Stein, Vice President of Fresh Foods FMI
Imagine being able to sort fresh pork loin cuts the same way you currently handle beef – through a grading classification of prime, choice and select. USDA is proposing these grades for pork loins, based on a color score and percent of marbling. And while USDA will be grading the loin, the grade can apply to the entire carcass if the associated cuts are traceable through fabrication and labeling. The color of pork is a proxy for pH, affecting tenderness and water-holding capacity, and the marbling in the meat affects tenderness and flavor.
The USDA states that the 30-plus-year-old standards “no longer accurately reflect value differences in today’s pork products.” In the past two decades, many researchers have defined the business case to create a consistent eating experience, acknowledging the role grading plays. Highlights of three of these studies include:
• Consumer taste and preference study – In brief, this study found consumers understand the indicators of quality (i.e., fat and marbling, color and appearance) and prefer darker color pork chops.
• Surveys of fresh pork in the retail meat case – A 2015 Objective Color Distribution study found that 80–to-90 percent of fresh pork in the retail meat case scored from 1 to 2 (on a six-point scale) for color. In terms of marbling, the 2015 Subjective Marbling Distribution study found that 60-to-70 percent of pork loin chops at retail scored in the 1 to 2 range for marbling (on a 10-point scale).
• Consumer willingness to pay – This study found consumers trust the USDA to be the judge of defining “pork quality.” Additionally, some consumers seek out paler, thinner cuts of meat, while others seek out redder, more highly marbled cuts. In either case, a motivated consumer will pay more if they can consistently get the quality they prefer. These proposed changes to the voluntary standards would enable consumers to identify and purchase a consistent quality of product. When provided options, some consumers are willing to trade up.
We know consumers prefer a unified standard because it offers a consistent eating experience. A grading update at this time allows a once-in-a-generation opportunity to produce, buy, process, and deliver consistency to consumers, which will improve pork quality in the long term.
Today, as we look individually at each of these studies and how they correlate to increasing value, one can conclude that the pork supply chain is leaving money on the table. According to a conservative analysis by economists at Steiner Consulting, if comparing pork grades to the current quality grading of the beef industry, the average pig would deliver an additional $2 to the supply chain, resulting in more than $200 million in annual profit for the industry.
There is a tremendous amount of information and education that will need to be provided to consumers; however, like beef, the grading of pork loin will benefit consumers and retailers.
The USDA proposal is accepting comments until December 22, 2017. I look forward to seeing the final version early next year”
– source: www.fmi.org –
Genetics – Pork Quality
We understand there is some push back from some Swine Genetic Companies regarding the new proposed grade system. They are saying, that to produce Prime or Choice Pork will increase cost of swine production. We totally disagree.
At Genesus, because of 20 years of intensive meat quality research focus, all our cut-out work test’s shows that our full genetic program will achieve over 90% in the Prime-Choice category. We have grown to be one of the major global swine genetic companies, because we have a prolific female, fast growth and high livability results. Little of our sale growth can e attributed to our meat superior taste an flavored.
The reason why some of our genetic competitors are against the new grade system is that they have been caught flat footed. They have focused on lean, lean and leaner; no taste and flavor. They are afraid that the new grade system will destroy the marketplace as the premiums flip to paying for more marbled and darker pork. They are against the new grade system, not for their customers or industry interests, but fear that they will lose market share.
They need to be scared, the pendulum is swinging.
Only People who have no vision, don’t see that Bellies, Ribs and Shoulders cuts with marbling and taste, lead the Pork-Cut procuring. Loins and Hams lag tremendously in value. Producers profitability would increase significantly if we can increase the value of Loins and Hams.
The other item that might be some concern about is that a quality grading program will lead to discounts. While we can’t say for sure how a packer will implement a program of quality, we do know that premiums and discounts were applied in the 1990’s, when we went to lean carcass grading, and the industry changed… and (a very important point) given the chronically depressed price of loins and hams, which lowers the overall cut value, we are already effectively having our hogs discounted as the results of the poor prices for loins and hams.
If we have the window to improve our Pork Quality, we will drive repeat purchases with better eating experiences (its startling to realize that the average consumer only purchases fresh pork 7 times a year) and this rising tide should lift all boats.
“People don’t resist change, they resist being changed” – Peter Serge, Scientist (1947)
This post was written by Genesus