[Federal Register Volume 61, Number 85 (Wednesday, May 1, 1996)]
[Rules and Regulations]
[Page 19155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10712]



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  Federal Register / Vol. 61, No. 85 / Wednesday, May 1, 1996 / Rules 
and Regulations  

[[Page 19155]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 53 and 54

[No. LS-94-009]


Standards for Grades of Slaughter Cattle and Standards for Grades 
of Carcass Beef

AGENCY: Agricultural Marketing Service (AMS), USDA.

ACTION: Final rule, postponement of effective date.

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SUMMARY: This document postpones the effective date of the final rule 
(61 FR 2891-2898) to revise the official U.S. standards for grades of 
carcass beef and the related standards for grades of slaughter cattle 
from July 1, 1996, until January 31, 1997. Upon the effective date, the 
changes eliminate ``B'' maturity (approximately 30-42 months of age) 
carcasses with small or slight marbling degrees from the Choice and 
Select grades and include them in the Standard grade. This action is 
being taken because carcasses with these characteristics have been 
shown to be both variable and often unacceptable in palatability, which 
contributes significantly to inconsistent palatability of Choice and 
Select grade beef. The standards for grades of slaughter cattle, which 
are based on the beef carcass grades, are revised to parallel the 
changes in the beef carcass grade standards. The extension of the 
effective date is in response to several requests asking for additional 
time to make needed adjustments to management strategies in order to 
respond to the grade change.

EFFECTIVE DATE: The effective date of the final rule is postponed from 
July 1, 1996, to January 31, 1997.

FOR FURTHER INFORMATION CONTACT: Herbert C. Abraham, Chief, Livestock 
and Meat Standardization Branch, Livestock and Seed Division, 
Agricultural Marketing Service, U.S. Department of Agriculture, P.O. 
Box 96456, Washington, D.C. 20090-6456, 202/720-4486.

SUPPLEMENTARY INFORMATION: On January 19, 1995, the Agricultural 
Marketing Service (AMS), U.S. Department of Agriculture, under 
authority of the Agricultural Marketing Act of 1946, as amended (7 
U.S.C. 1621-1627), published a proposed rule (60 FR 3982-3986) to 
revise the official U.S. standards for grades of carcass beef and the 
related slaughter cattle standards by eliminating ``B'' maturity 
(approximately 30-42 months of age) carcasses with small or slight 
marbling degrees from the Choice and Select grades and including them 
in the Standard grade. In consideration of the over 400 written 
comments received on the proposal, and all other available information, 
the proposed rule was adopted and a final rule was published on January 
30, 1996, (61 FR 2891-2898). To allow the industry time to adjust its 
production and marketing practices and to market beef currently in the 
pipeline, implementation was scheduled for July 1, 1996.
    Since the publication of the final rule, AMS has received several 
requests from several State cattle associations, a national packer 
organization, and several members of Congress to delay the effective 
date. The requests for a delay primarily focused on the belief that it 
is in the industry's best interest to provide a ``full'' adjustment 
period of 18 months prior to implementation, which they indicated was 
provided for in the AMS economic analysis. They stated this would allow 
the industry to better adjust management strategies to conform to the 
new revised standards. In the published final rule, the Department did 
not conclude that an 18-month adjustment period was necessary prior to 
implementation of the changes. The reference to an 18-month period in 
the final rule was one of the periods of time after implementation used 
to calculate the economic impact of the changes rather than a period of 
time for delaying implementation. It was concluded that during the 18-
month period following implementation, there would be a net positive 
impact of $86-million if only 25 percent of the B-maturity carcasses 
were eliminated through improved management practices. Greater benefits 
would accrue if more than 25 percent of the B-maturity carcasses were 
eliminated. A 5-month period prior to implementation was provided so 
many of the cattle now in feedlots could be marketed before the changes 
became effective. Although an 18-month adjustment period was never 
intended, AMS recognizes there may be some confusion about 
establishment of the implementation date, and that implementation of 
the changes at a time of large beef supplies and high grain prices may 
not be in the best economic interest of the industry. Consequently, AMS 
has decided to delay implementation of the beef grade changes. Although 
the sooner that changes in production and management practices are 
implemented, the greater the total benefits to the entire beef 
industry, AMS recognizes that there are some situations where short-
term economic losses might occur and this additional delay should allow 
market forces to adjust by the implementation date. The delay in no way 
prevents cattle producers and feeders from adopting new management 
strategies at this time to minimize the production of B-maturity 
carcasses.
    Therefore, the effective date of the final rule that was published 
at 61 FR 2891-2898 on January 30, 1996, is postponed until January 31, 
1997.

    Authority: 7 U.S.C. 1621-1627.

    Dated: April 24, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-10712 Filed 4-30-96; 8:45 am]
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