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Animal Products. Red Meat Products. Red Meat Products. Sources Swine Sheep Horses Poultry is often called white meat. Red Meats. Cattle Beef is from cattle greater than 1 yr of age Veal is from calves less than 3 months of age Grey color tint Swine Pork Sheep
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Animal Products Red Meat Products
Red Meat Products • Sources • Swine • Sheep • Horses Poultry is often called white meat
Red Meats • Cattle • Beef is from cattle greater than 1 yr of age • Veal is from calves less than 3 months of age • Grey color tint • Swine • Pork • Sheep • Lamb is from young sheep less than 1 year of age • Goats
World Ranking for red meat supply • 1. • 2. United States • Red meat ranking • 1. • 2.
Slaughter • Animals transported to packing plant alive • Animal made unconscious • Electricity • Jugular and/or carotid artery severed to drain blood from animal • Hide is removed • Hogs are scalded to remove hair • Skin is usually left on • Viscera, head, and other by-products are removed • Often referred to as offal
Dressing Percentage • Average Dressing Percentages • Hogs – 70-75% • Cattle – 60-65% • Sheep – • Goats – 45-50% • Primary factors affecting dressing percentage: • Fill (digestive tract fill) • Weight of wool • Muscle
Slaughter Continued • Following offal removal • Carcasses are split, washed, and chilled • Pork and beef • Aging • Improves tenderness of meat • Not common in large packing plants • Many plants process carcasses into wholesale cuts or retail cuts • Boxed beef; boxed pork; boxed lamb • Shipped from packing plant as a retail cut
Breakdown of a Carcass • Wholesale Cuts
Primal Cuts • Beef- • Round, Loin, Rib, Chuck • Lamb- • Pork- • Boston Butt, Picnic Shoulder, Loin, Belly, Ham
Red Meat Composition • Physical – visual observations • Lean • Fat • Intermuscular • Bone • Connective tissue • Tendons attach muscle to bone • Other connective tissue holds muscle together
Red Meat Composition • Chemical – determined by chemical analyses • Chemical composition of lean meat determines nutritional value • 65-75% water • 15-20% protein • 2-12% fat • 1% minerals • As animals age fat percentage increases while water and protein percentages decrease • Fat soluble vitamins • Contained in fat • A, D, E, and K • Water soluble vitamins • Abundant in muscle • B – vitamins • Carbohydrates • Less than 1% • Glycogen • “Dark cutters”
Markets • Terminal Markets • Direct Packer Buying • Public Auctions (sale barns; “ebay”) • Auctioneer sells animals to highest bidder • Open to public • Seller pays commission to sale barn • Typical feeder livestock and cull breeding stock
Marketing • Traditionally animals were purchased on live weight basis • Buyer estimates the value of the carcass and makes offer • Now, an increased number of animals are sold on a carcass merit basis • Seller is paid based on what is actually determined to present in the carcass
Ways to Market Livestock • Carcass merit index
Livestock Marketing Terminology • Shrink • ADG
Futures Market Terminolgy • Short • Hedge • How can the futures market be utilized as a risk management tool?
Food Service Industry • Rapidly growing • Capture high market share • McDonald’s • Quality assurance