What The…?: One of the industry talking heads recently declared that camera grading:
“…is the biggest farce in the industry right now…but it’s the kind of thing that nobody’s going to complain about because the packers love it, the cattle feeders love it and the consumers don’t know the difference so we’ll continue to take advantage of them. In the long run it’s going to hurt demand for beef because the people are not getting what they’re paid for…”
That’s a lot to unwind. But for now, let’s just tackle the core issue.
Camera Grading: The technology was approved for use in the packing plants beginning September, 2009 and now functional in most plants. Cameras are calibrated prior to each shift and operated by trained employees with oversight from USDA graders (who also have authority to override the camera).
As such, camera grading hasn’t altered the essence of the process. The only difference being utilization of an objective measuring device (think tape measure or load cell) thereby adding accuracy to, and reducing variation between, each-and-every grade call.
Proof Positive: Weekly USDA grading percentages - categorized by state - provide some interesting lessons about the benefits of camera grading. Several graphs follow.
- One: the data counters any claim the camera “adds grade”. The substantive improvement in quality grade corresponded with the rebuilding of 2015 – NOT implementation of camera technology (see Rebuilding The Cowherd: Past Is Prologue).
- Two: the graph details the weekly percentage of Prime for Nebraska, Kansas and Texas, respectively between 2001-and-2009. Note specifically the negative correlation between Nebraska and Texas. That is, as Nebraska’s weekly percentages would ebb-and-flow seasonally, the grading lines in Texas had tendency (albeit weak) to oppose that trend (and vice-versa).
That’s hard to explain given what we know about grading seasonality – regardless of the baseline potential in the state’s respective slaughter mix.
- Three: same data for 2011-thru-2023 (2010 intentionally omitted – it represents the transition year). The correlations are consistently more solid among the state pairings. (Just a reminder, higher correlations don’t mean higher grades – it just means weekly differences across the states are more likely to move together – as expected per seasonality). (You can find a table of grade-by-state correlations in the table at the end of the column.)
Veteran Perspective: Here’s how three knowledgeable and respected industry veterans describe the benefits of technology:
- Dr. Glen Dolezal: “Camera technology has significantly improved the accuracy and consistency of grade application and certification of brands with numerous criteria. This is readily apparent between plants, between shifts, within shifts and across graders daily.”
- Dr. John Stika: “Instrument grading advancements and adoption levels to date have improved the accuracy, precision and consistency with which beef carcass grades and brand certifications are applied within and across packing plants, only strengthening confidence in the grading system.”
- Mr. Jerry Wulf : “What we have witnessed after instruments were incorporated, is much more consistency in grading from plant to plant and from lot to lot of cattle, regardless of where they were harvested.”
Box Of Chocolates: The pre-vs-post camera data introduces some important questions about how the psychology of decision-making (anchoring bias and measurement drift) influenced grade calls by USDA graders. Maybe pre-camera carcass grading wasn’t as reliable as we once believed (more like a box of chocolates)?
Camera grading, though, removes those influences and makes evaluation more consistent and repeatable (across time, regions and grade). Nothing farcical about that.
As such, the only farce here is the claim itself. Camera grading precision has substantially benefitted the industry. Most importantly, it leads to better consumer confidence in the beef products they purchase. But that’s another column for another day.
Load the rail - the grading stand is open for business.
Nevil Speer is an independent consultant based in Bowling Green, KY. The views and opinions expressed herein do not reflect, nor are associated with in any manner, any client or business relationship. He can be reached at nevil.speer@turkeytrack.biz.
