Is fresh lamb graded?

Yes. Lamb intended for retail distribution is graded (voluntarily) as prime, choice, or good. Lower grades--utility and cull--are typically ground or used in processed meat products. Because prime lamb has more fat marbling, it is more tender and flavorful than choice or good lamb.  However, prime lamb also is higher in fat content. Most graded lamb sold in supermarkets is choice or good. The protein, vitamin, and mineral content of lamb are similar in all grades.
USDA Fact Sheet "Lamb From Farm to Table"


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