USDA Grading is Voluntary
It is important to note at this point, that today, as it was at its inception, the grading of beef is a voluntary service. In fact, over the entire history of the U.S. beef grading program there have been only two brief periods, during the Second World War and the Korean War, that beef grading was compulsory to the U.S. beef industry.
Producers, packers, or retailers who do not wish to have their products graded may simply not request the service, or they can remove the USDA grade shield from graded products. However, most retailers and restaurateurs require their product be USDA graded, and use the USDA grades in their marketing. Therefore, it has been in the best interest of the packing companies to request and pay for grading services from USDA to gain access to all markets and receive premiums for their graded product. In fact, it is commonplace in the market for packers to grade all beef qualifying for Prime, Choice, and Select and for other product that does not meet these requirements to not be graded, and sold on a "no roll" basis.
Grading services are provided to the industry on a "cost-recovery" basis. These costs include graders salaries, as well as costs of supervision and management of the system. On average, grading services cost the beef industry approximately 1/20 of a cent per pound, or about 38 cents per carcass. This rate appears very affordable, especially when the marketing benefits of the U.S. Prime, U.S. Choice and U.S. Select grades are considered.
http://www.ams.usda.gov/LSG/mgc/beefrole.htm#Purpose
It is important to note at this point, that today, as it was at its inception, the grading of beef is a voluntary service. In fact, over the entire history of the U.S. beef grading program there have been only two brief periods, during the Second World War and the Korean War, that beef grading was compulsory to the U.S. beef industry.
Producers, packers, or retailers who do not wish to have their products graded may simply not request the service, or they can remove the USDA grade shield from graded products. However, most retailers and restaurateurs require their product be USDA graded, and use the USDA grades in their marketing. Therefore, it has been in the best interest of the packing companies to request and pay for grading services from USDA to gain access to all markets and receive premiums for their graded product. In fact, it is commonplace in the market for packers to grade all beef qualifying for Prime, Choice, and Select and for other product that does not meet these requirements to not be graded, and sold on a "no roll" basis.
Grading services are provided to the industry on a "cost-recovery" basis. These costs include graders salaries, as well as costs of supervision and management of the system. On average, grading services cost the beef industry approximately 1/20 of a cent per pound, or about 38 cents per carcass. This rate appears very affordable, especially when the marketing benefits of the U.S. Prime, U.S. Choice and U.S. Select grades are considered.
http://www.ams.usda.gov/LSG/mgc/beefrole.htm#Purpose