Butcher Calf

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CSimmons

CSimmons

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Joined
Dec 22, 2020
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8
City & State/Province
East Texas
A friend of mine is looking at purchasing a calf from us for slaughter. He is essentially wanting to pay someone to raise it for him until the butcher date. Anyone have experience with this? I’m assuming he would pay X amount for the calf as it sits today, along with whatever the feed bill is if he chooses for us to feed him out. Added to whatever we value our time and labor at. Does this sound correct? He is looking at a 4 or 5wt currently.
 
CSimmons said:
A friend of mine is looking at purchasing a calf from us for slaughter. He is essentially wanting to pay someone to raise it for him until the butcher date. Anyone have experience with this? I'm assuming he would pay X amount for the calf as it sits today, along with whatever the feed bill is if he chooses for us to feed him out. Added to whatever we value our time and labor at. Does this sound correct? He is looking at a 4 or 5wt currently.
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Easy enough to figure it out. Sell the calf at current market value. Keep feeding it and when it's time to go to the processor figure the current market value then, and subtract what he's already paid you.
Of course the market could fluctuate, so you could also figure the cost of a finished steer today and have him pay market price for the calf today with the agreement to pay you the difference of a finished price (today) when the calf goes to the processor.
 
I would ask for $100 deposit to keep the calf on the farm then charge by the pound (-deposit) when you sell it at the going rate. No one wants to pay twice or more, for the same product. Kind of a forward contract with a guarantee he doesn't back out if its not what he is looking for when finished. Have to agree on the hanging weight or live weight. Deposit depending on how well you know someone. I sell to repeat customers without a deposit.
 
Charging by the pound at the end can be a bit tricky. What they schedule it to the butcher when it only weighs 800 pounds on the hoof? What if they want it fed non GMO organic grain. What if the calf up and dies on you? I would want the value of the calf at the point of sale. An agreed on ration an length of time on feed. Or better they buy the feed and pay you to feed it at an agreed on $ per day.
 
Dave said:
Charging by the pound at the end can be a bit tricky. What they schedule it to the butcher when it only weighs 800 pounds on the hoof? What if they want it fed non GMO organic grain. What if the calf up and dies on you? I would want the value of the calf at the point of sale. An agreed on ration an length of time on feed. Or better they buy the feed and pay you to feed it at an agreed on $ per day.
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If you take money for the cow up front and it dies on you, who pays for that? It was your responsibility. The profit on the hanging weight is supposed to account for the risk of the calf dying. Lot's of ways to split feed costs depending on how it's fed and where the feed is coming from.
 
Thanks for everyone’s input…this is a first for me just looking to gather more information on the matter.
 
Ive thought if a lot of possible ways to do it and in the end I went with a per pound price on hanging weight AND the buyer pays the processor their fees.

You could look at the futures price for live cattle (ready for processing) and charge that, but then you'd need a live weight as you drive it to the processor. My current processor doesn't do live weight, only hanging weight.

Depending on quality, customer confidence, who pays the processor, etc. some ranchers charge bt $7 - $12 / pound hanging weight.
 

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