Beef’s $409 Million Defect

The overall condemnation of beef livers due to abscesses and the severity of those abscesses costs the U.S. beef industry $409 million annually. It’s a problem that must be addressed.

Beef on dairy
Beef on dairy
(Wyatt Bechtel)

Most Americans wouldn’t take a package of beef liver if you gave it to them. Indeed, the 15-lb. liver from a beef animal has a wholesale value of about $8. Although the value of liver is vastly greater as an export product, the condemnation of a liver on a harvest floor, by itself, is not significant.

But the overall condemnation of livers due to abscesses and the severity of those abscesses costs the U.S. beef industry $409 million annually.

That’s according to data gathered by the Beef Carcass Research Center at West Texas A&M, Canyon, Texas. On the harvest floor, liver abscesses receive one of five designations of severity. Those condemned with an “A” or “A-” by a USDA-FSIS inspector result in the loss of the liver for the packer.

“If that was the worst thing packers dealt with, this wouldn’t be an issue, and you and I wouldn’t be talking,” West Texas A&M professor and director of the BCRC, Ty Lawrence told me. “Reality is industry losses to liver abscesses go far beyond liver condemnations at the packing plant.”

Over a 12-month period, BCRC evaluated 271,436 carcasses, finding liver abscesses in 26% of beef steers, 21% of beef heifers, 20% of Mexican cattle, 29% of Holsteins and an eye-popping 68% of carcasses from beef-on-dairy crossbreds.

Extrapolating those observations over last year’s harvest of 27.3 million steers and heifers suggests an industry average of 27% liver condemnation.

Liver abscesses are due to infection, which causes adverse effects beyond the condemned liver. Lawrence says an A+ designation on a liver results in the loss of the liver, but also a 18-lb. decrease in hot carcass weight because the animal was fighting the infection. Lawrence values losses from A+ cattle at $49 per occurrence ($8 for the liver and $41 for reduced weight).

The next designation, A+ adhesion, results in a $107 loss per occurrence ($8 for the liver, $75 for 33 lb. of reduced hot carcass weight, and $24 for the loss of the skirt steaks). Skirt steaks are valuable as fajita meat in the U.S. and as export products.

The fifth designation, A+ open, is an open abscess that causes the entire viscera to be condemned. That amounts to a $50 loss for the liver and viscera and $99 for a 44-lb. decline in hot carcass weight for a $149 loss for each occurrence.

Losses to liver condemnations appear to be a growing problem, and, as Lawrence says, is an issue that “we as an industry have got to fix.”

Drovers_Logo_No-Tagline (1632x461)
Drovers_Logo_No-Tagline (1632x461)
Read Next
The June Farm Journal Ag Economists’ Monthly Monitor reveals a majority of ag economists support reopening the Mexican border and rank weather and input costs as more immediate threats to the U.S. cattle herd.
Get News Daily
Get Market Alert
Get News & Markets App