The packer passes this information to the feedlot through the price that he is willing to pay. Animal traits that are perceived to have significant value are paid a premium. Traits that are not in demand are discounted. Today this premium and discount process is frequently developed and related to the producer through a grid . A Yield based grid would reward cattle that graded ones and twos and heavily discount fours and fives.
Grids also discount cattle that weigh over or under a set carcass weight range.
Cattle sold on the head are also evaluated on the bases of quality and yield grades. The carcass-based approach can see the results and it isn't an estimate. This mandatory price reporting process is for fed cattle. The buyers of Carolina calves don't work in a vacuum. They are aware of the prices being paid for all types of cattle that posses certain traits.