Fall 2020 Webinar – Part IV

December 15, 2020
CME Carcass 

Deliveries

Joe Barksdale

USDA Agricultural Marketing Service

Livestock & Poultry Program, Quality Assessment Division

Joseph.Barksdale@usda.gov
Carcass Delivery

The Long elects to delivery on a carcass 

basis.

The Short will be notified for carcass 

grading on the third business day prior to 

the day of delivery.

The Short will indicate if the delivery will 

be a “Large Lot Delivery”.

The Long will provide:

The plant selected for delivery.

Slaughter date, selected by the Long and 

plant representative.

If the long consents to a “Large Lot 

Delivery”, if elected by the Short.
Carcass Delivery Requirements

• Lots must be either steers or heifers, they 

can not be mixed. 

• Delivery points must be less than 225 road 

miles from the originating feed lot.

• Upon arrival at the plant, cattle must be 

allowed access to water.

• Seller can deliver in large lots (10 loads). 
USDA Grader Coordinates with Receiving 

Plant

• USDA Grader is unbiased third party.

• USDA Grader reviews plant’s SOP for CME 

deliveries. 

• USDA Grader ensures open communication with 

plant personnel running the deliveries prior to the 

delivery date. 

• The USDA Grader is trained in all steps involved: 

• Unloading

• Harvest Floor

• Cooler/Transfer

• Application of USDA Standards
CME Carcass Delivery 

– Unloading at Plant

• Delivery from 6:00AM to 6:00PM

• USDA Graders inspect cattle for physical 

characteristics.

• No lump, bumps or bruises.

• No predominance of dairy breeding or 

prominent humps.

• Lot consist of all the same gender. 

• USDA Grader are NOT allowed in the pens.

Quantity Deviations – Live Weight

• Each unit must weight between 38,000 -

42,000 pounds.

• Large Lot Delivery Units

o May not exceed a size of ten contracts.

o Units shall be 40,000-pound times the number of 

contracts. With a 5% variance.

o Seller is relieved of requirement for lots being sorted into 

units weighing between 38,000-42,000 pounds prior to 

arriving to harvest plant.
USDA Requirements –

Documentation

Weighing performed promptly upon arrival.

USDA Graders ensure all loads meet the required 

weights.

USDA Grader supervise the weighing by plant 

employee.

USDA Grader Record:

Total Net weight

Number of head

Lot Number and/or pen number

Date weighed
Under/Overweight Lots

Cattle can be added/removed from a load to 

meet the 38,000-42,000-pound weight.

Seller may have extra cattle, to replace cattle 

not meeting CME contract requirements to 

meet the weight requirement.
Other 

Deviations

• If one or more carcasses is condemned or 

is unacceptable, carcass shall not be 

considered.

• If removed, total carcass weight will reflect 

only carcasses acceptable for delivery.

• Total delivered live-weight shall be 

reduced by average live weight times the 

number of carcasses removed.
Other 

Deviations 

(cont.)

• If total live weight falls below the 5% 

tolerance, amount equal to the par value 

of an animal at the average live weight or 

average dollar value of remaining carcass, 

which is greater, shall be credited to the 

buyer.

• Excess trimming due to injection sites or 

other carcass defects will be reduce the 

total delivered carcass weight, and the 

resulting hot yield.

• Liver condemnation in excess of 20% are 

the liability of the seller.
Procedures & Standards for 

Grading – Yield and Weighing

• After completion of weighing and visual 

inspection, cattle are placed in a holding 

pen.

• Identity shall be maintained in a manner 

satisfactory to the USDA Grader.

• Including sealing the holding pen with a 

numbered seal.

• Recording of seal number and plant-assigned 

sequential lot ID of the delivery unit.
Extra Cattle 

• The plant may segregate and buy the 

extra cattle, eliminating the need to 

“backhaul” to the feed lot.

• After all trucks are unloaded for 

each contract and required weights 

are obtained, the USDA Grader 

notifies CME.
Kill Floor 

Requirements

• Each carcass is stamped with a CME 

stamp.

• The first and last head in the lot each have 

an identifier to maintain lot 

identity/integrity.

• Cattle are USDA graded within three days 

of harvest. Results are then submitted to 

CME.
Carcass Weights Requirements

• Carcass should weight between 600-900 pound. 

o Any carcasses below or above these weights are noted by the USDA grader and 

reported to CME.

• Condemned livers >20% are noted. These are the liability of the seller.

• CME Contracts commencing prior to February 2021:

o Yield Grade 3, 65% Choice, 35% Select 

• CME Contracts commencing February 2021 and beyond: 

o Yield Grade 3, 70% Choice, 30% Select

• Yield Grades 1, 2, 4, or 5 receive a per pound adjustment (10103.A.)
Recording Carcass 

Deliveries

If carcasses are over +30 months 

of age determined by dentition on 

the harvest floor, the USDA 

Grader will record the weight and 

ID only in the “Over 30 Mon” box.

Any carcass with skeletal factors 

older than “D 0” and does not 

grade Prime, Choice, or Select will 

also be noted and reported to 

CME.
Recording Carcass Deliveries – Dressing Percent

The Total Dressed Weight is automatically calculated as the dressed weight 

for each carcass is entered. 

The Dressing Percentage is automatically calculated based off the Total Live 

Weight and Total Carcass Weight.

Dressing % must have an actual average hot yield of 63% or higher.
Final Steps

• After USDA Quality and Yield grades have been applied to each animal 

within a lot:

o USDA Grader will submit documentation to CME.

o Records will be retained for future questions or inquiries.

o CME Clearing will release ownership to the Long.
Who determines if a contract will be delivered on a 

carcass basis?

A The Long

B The Short

C USDA

D CME
Who determines if the delivery will be a small or 

large lot?

A The Long

B The Short

C USDA

D CME
This carcass is unacceptable 

for a carcass delivery.

A True

B False
Would this carcass be 

accepted on a carcass 

delivery unit?

A Yes

B No
Thank you for Participating

For more information on this webinar series and the 

USDA Cattle and Carcass Training Centers, visit: 

www.ams.usda.gov/grades-standards/beef/cattle-carcass-training- centers

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