Dallas City Packing, Inc. v. Butz

411 F. Supp. 1338
CourtDistrict Court, N.D. Texas
DecidedFebruary 22, 1976
DocketCiv. A. No. 3-75-0578-G
StatusPublished
Cited by1 cases

This text of 411 F. Supp. 1338 (Dallas City Packing, Inc. v. Butz) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dallas City Packing, Inc. v. Butz, 411 F. Supp. 1338 (N.D. Tex. 1976).

Opinion

MEMORANDUM OPINION

PATRICK E. HIGGINBOTHAM, District Judge.

I.

1. The Parties and the Dispute.

On February 23, 1976, the United States Department of Agriculture (USDA) will implement new standards for the grading of meat. The power to establish standards for meat grading is granted to the Secretary of Agriculture by the Agricultural Marketing Act of 1946, 7 U.S.C. § 1622, as amended. Seventeen meat packers whose businesses are principally in the southwest portion of the United States and whose main product is “baby beef” seek to enjoin the proposed regulations and have them declared invalid.

The proposed regulations have proceeded through the usual process of informal rulemaking.1 On September 11, 1974, the proposed rules were published in the Federal Register (39 F.R. 32734). See, 7 C.F.R. 53.100-53.105. During the September 11 to December 10, 1974, “notice” period, 4,000 separate written comments were received, together with various research studies.

[1341]*1341On November 27, 1974, President Gerald Ford issued Executive Order No. 11821 (Ex. Order) requiring government agencies to consider the inflationary impact of any new agency rules. On March 12, 1975, the USDA published the statement that:

The inflationary impact of these revisions of the guide standards has been evaluated. 40 F.R. 11547.

While the general history of meat grading has been set out in other court opinions2 a brief review is essential to provide an environment conducive to understanding this dispute. While beef grading did not officially begin until May, 1927, with the Secretary of Agriculture publishing standards in June, 1927, tentative standards have been formulated as early as 1916. These standards for the grading of meat were amended from time to time in response to changing production techniques and greater experience in grading. Seven changes in the classification of meat have been made to date (1939, 1941, 1949, 1950, 1956, 1965, 1973). The USDA description of the 1965 change illustrates these changes and is otherwise pertinent here:

“The official standards for grades of steer, heifer, and cow beef were revised in June 1965 to place less emphasis on changes in maturity in the Prime, Choice, Good, and Standard grades. This change was made to reflect the latest research information available regarding the effect of maturity on beef palatability. The minimum marbling permitted in these grades was not changed for the very youngest beef. However, the rate of increase in required marbling to offset increasing maturity was changed, and the minimum marbling permitted was reduced for more mature carcasses by as much as lVfe degrees in Prime, 1 degree in Choice, and % of a degree in Good and Standard. In addition, the revision eliminated consideration of the two degrees of marbling in excess of that described as abundant. The manner of evaluating conformation also was clarified by providing that carcasses may meet the conformation requirements for a grade either through a specified development of muscling or a specified development of muscling and fat combined. This revision also included a requirement that all carcasses be ribbed prior to grading and made other minor changes to clarify the intent of the standards and simplify their application. An added provision established standards for cut-ability grades of carcasses and certain wholesale cuts of all classes of beef. A dual grading system for beef carcasses, involving separate identification of differences in quality and in cutability, had been proposed by the Department in April 1962 and made available for use on a trial basis for one-year period beginning July 1, 1962. The cutability standards adopted in 1965 were similar to those included as a part of the dual grading system, but modified on the basis of comments from industry and experience gained during the trial period of the dual grading system.” Reprint, Off. U. S. Standards For Grades of Carcass Beef, Sec. 53.100-53.105 C.F.R.

In 1946 Congress enacted the Agricultural Marketing Act, 7 U.S.C. Sec. 1621, et seq., authorizing the Secretary of Agriculture to “inspect, certify, and identify the class, quality, quantity, and condition of agricultural products under such rules and regulations as (he) may prescribe . . . ” The Act also authorized the Secretary to issue regulations:

“ . . .to the end that agricultural products may be marketed to the best advantage, that trading may be facilitated, and that consumers may be able to obtain the quality product which they desire, except that no person shall be required to use (this) service . . .”7 U.S.C. Sec. 1622(h).

There are two general but separate evaluations involved under the present system of grading beef. First, “cutability” or percentage from a carcass of [1342]*1342trimmed boneless cuts to be sold at retail, or the “yield” of a carcass. Second, palatability indicating characteristics or the “quality” of a carcass. Marbling (dispersion of fat) and maturity3 (the age) of the slaughtered animals are the yardsticks of quality. It is one aspect of quality grading that is here in issue. While it was generally believed by USDA4 that to retain palatability, marbling must increase with maturity, the relationship between the two is the subject of some disagreement and has been the focus of considerable research.

For example, one study of beef of A (9 to 30 months), B (30 to 48 months) and E (the most mature beef), maturities reported:

“Although samples from the most youthful carcasses were more tender than those from the more mature carcasses, differences in tenderness between samples in either selection classes in the A and B maturity groups were of small magnitude and not linearly related to advancing maturity.” Berry, J. Animal Sci. 38:507.

The quality standards are applied to classify meat by the designations: Prime, Choice, Good, Standard, Commercial, Utilty, Cutter and Canner.

The plaintiffs all slaughter, dress and sell substantial quantities of beef of the “A” category (less than 30 months) referred to as baby beef. A substantial portion of baby beef is now graded as “Good” but would be graded as Standard under the proposed rule. The “Standard” grades are not now sold through the usual retail stores because they usually confine their purchases to “Choice” and “Good” grades. The drop in grade class from Good to Standard would be caused by an increase in the marbling requirement of beef of “A” maturity.

The proposed regulations would make five basic changes:

(1) Conformation5 would be eliminated as a factor in determining the quality grade.
(2) When officially graded, all beef carcasses (except bull carcasses) would be identified for both quality grade and yield grade.

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Related

In Re Estate of Indyk
413 A.2d 371 (Supreme Court of Pennsylvania, 1979)

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Bluebook (online)
411 F. Supp. 1338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dallas-city-packing-inc-v-butz-txnd-1976.