Cattle prices

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Little Joe said:
That will depend on where you are and how big your cattle are. My custom exempt processor gets $0.70/lb x hcw, local USDA facility gets $1.10. My customers like 600-750lb hcw, those sizes keep your steaks a reasonable size and a quarter somewhat affordable. I've had them hang around 850 before, I had to just set a ceiling on the quarter price because no one would buy them by the pound hcw because it was too expensive.
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I've tried the custom except guys, but in my experience, it's not the same. i.e. barely 50% rail to box/packing issues/bone fragments in the burger/etc. Sounds like you have a great deal with your CE guy.
 
Ridgefarmer63 said:
I've tried the custom except guys, but in my experience, it's not the same. i.e. barely 50% rail to box/packing issues/bone fragments in the burger/etc. Sounds like you have a great deal with your CE guy.
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Little Joe said:
That will depend on where you are and how big your cattle are. My custom exempt processor gets $0.70/lb x hcw, local USDA facility gets $1.10. My customers like 600-750lb hcw, those sizes keep your steaks a reasonable size and a quarter somewhat affordable. I've had them hang around 850 before, I had to just set a ceiling on the quarter price because no one would buy them by the pound hcw because it was too expensive.
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I hear you on the weight issue too. I tell my customers I shoot for a 600 pound hanging weight. They do understand there will be variations since it is by the pound. If I have a side weighing more than 350ish, I reach out to the customer and warn them about sticker shock and tell them I can skim it down if they'd like. I've never in 20ish years had a customer say "skim it down" they always want the big boy.
 
Ridgefarmer63 said:
I don't understand how someone buying a 440 pound steer for 2662 bucks can make any money. I'd say it would take at least 6 more months to get him to 1100 on the hoof. Add in 1100 bucks to process a 600 pound hanging weight. That's 3700 bucks spent not including the 6 months of input you have in him. I'd have to charge 8 bucks/pound hanging to make any decent profit. Someone please enlighten me.
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It is a numbers game. You most likely don't have the numbers that they play with. A 440 lb steer they will put on 1,000 lb making it 1,440 lb. Fat steers were reported at $2.56 this week. That is $3,686. Minus the $2662 is $1,024 to add 1,000 lbs. It cost them about $0.80 per lb for the gain. Strictly on the cost of gain they are $224 to the good. A 440 lb steer is likely going to some cheap grass to put on 300 lbs or so.
Also what you consider a decent profit. $100 a head is probably not worth your time. But for those running 10,000 head a $100 a head profit works out to be a million dollars.
 
Dave said:
It is a numbers game. You most likely don't have the numbers that they play with. A 440 lb steer they will put on 1,000 lb making it 1,440 lb. Fat steers were reported at $2.56 this week. That is $3,686. Minus the $2662 is $1,024 to add 1,000 lbs. It cost them about $0.80 per lb for the gain. Strictly on the cost of gain they are $224 to the good. A 440 lb steer is likely going to some cheap grass to put on 300 lbs or so.
Also what you consider a decent profit. $100 a head is probably not worth your time. But for those running 10,000 head a $100 a head profit works out to be a million dollars.
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As for profit, in my small op, I gotta make 1000 bucks a head. Otherwise, start making square's for horse people. I know I'd miss my cows though.
 
We do both, make squares for horse customers, and raise the cattle... the squares help pay all the haying costs..
But we have several leased places that might not be available to you @Ridgefarmer63 . We have cut way back on the custom meat side because it just does not make the money selling the stockers/feeder calves does now.
 
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My butcher charges $1.00 a pound hanging weight to cut and wrap. Farm kill was $80. They charge $20 for disposal of waste at both the kill and cutting. At the kill I save the $20 by having them throw the head, hide, legs, and guts into the bucket of the tractor. Coyotes need to eat too.
 

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