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Exploring The Existence Of Grader Bias In Beef Grading

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Listed:
  • Jang, Ju Won
  • Ishdorj, Ariun
  • Anderson, David P.
  • Purevjav, Tsengeg
  • Dahlke, Garland

Abstract

The United States Department of Agriculture (USDA) beef grading system plays an important role in marketing and promoting of beef. USDA graders inspect beef carcasses and determine quality grade within a few seconds. Although the graders are well-trained, the nature of this grading process may lead to grading errors. In this paper we examine whether systematic grader bias exists in calling quality grade. Using data from a large-scale packing plant in Midwest we find that seasonality of beef demand and macroeconomic events influence the grading behavior of USDA graders. Producers gain financially from grade called by USDA graders rather than measured by camera.

Suggested Citation

  • Jang, Ju Won & Ishdorj, Ariun & Anderson, David P. & Purevjav, Tsengeg & Dahlke, Garland, 2015. "Exploring The Existence Of Grader Bias In Beef Grading," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196872, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea15:196872
    DOI: 10.22004/ag.econ.196872
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    References listed on IDEAS

    as
    1. George Leckie & Harvey Goldstein, 2011. "Understanding Uncertainty in School League Tables," Fiscal Studies, Institute for Fiscal Studies, vol. 32(2), pages 207-224, June.
    2. Philippe Marcoul & John Lawrence, 2007. "Grader Bias in Cattle Markets? Evidence from Iowa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 890-903.
    3. Lusk, Jayson L. & Marsh, Thomas L. & Schroeder, Ted C. & Fox, John A., 2001. "Wholesale Demand For Usda Quality Graded Boxed Beef And Effects Of Seasonality," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-16, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Agricultural and Food Policy; Livestock Production/Industries; Marketing;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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