By Dr. Andrew Griffith
I was asked this week how the beef cutout price was calculated?
The boxed beef cutout value is a value USDA calculates to represent the gross value of a beef carcass based on prices paid for individual beef items derived from the carcass. Thus, USDA estimates what percentage of the carcass eat cut comprises and then uses actual prices paid for those cuts to make a weighted average price which is the boxed beef cutout price.
Source : osu.edu