How is meat graded?

According to its fat content, commonly called marbling. Marbling refers to white streaks of fat within the  muscle. The greater the amount of marbling, the higher the grade because marbling makes beef more tender, flavorful, and juicy. USDA Prime beef has more marbling and is graded as such. Most graded beef sold in supermarkets is USDA Choice or USDA Select. USDA does not  require that beef be graded. (If the processor wants his beef graded, he pays the USDA to do it).
 
Source(s):
USDA Fact Sheet "Beef...From Farm to Table"

 
 

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