Fair price for freezer beef ?

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cypressfarms

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I'm in the process of closing a deal to provide butcher calves for two nursing homes. They should buy a fairly large sum of calves, 10-15 head or more - I'm waiting for them to give me a number. My problem is that I normally charge $2.00/pound hanging weight at the time of slaughter. Should I discount them because they'll buy so many? Selling as freezer beef I come out $100-$200 better than if I sold them at the stockyard, so there is some wiggle room. They feel like they are getting a bargain for meat at $2.00 a pound, but I'm feeling slightly greedy. Any comments? Maybe the chemo has blown my mind.
 

cfpinz

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I'm not a greedy person by any means, but I think the $2/lb is fair. That's what we sell ours for and I haven't heard any complaints yet. That little extra cushion will come in handy when one dies or gets sick, or feed skyrockets again. Crap happens.
 

LimiMan

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If you're happy and they are happy then go for it. I dont see how you are finishing the steers out properly and making $100-200 more than you would at weaning by only charging $2 lb. But I also dont know all the in's and out's of your operation. :)
 

BC

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LimiMan":22okslx2 said:
If you're happy and they are happy then go for it. I dont see how you are finishing the steers out properly and making $100-200 more than you would at weaning by only charging $2 lb. But I also dont know all the in's and out's of your operation. :)
He is selling a calf that is worth $1.30 lb hanging weight for $2.00 a lb. That $0.70 a lb extra is how he figures he is making the extra money.
 

chippie

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cypressfarms":1tpnz34i said:
..... They feel like they are getting a bargain for meat at $2.00 a pound.....

Are they aware that they will not be actually getting the hanging weight in beef after the calf is processed?
Someone posted the percentage of actual meat after processing in another thread.

Congrats on getting the contract :D
 

backhoeboogie

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$2 is fair if everyone is happy. You can always buy a park bench or something to express gratitude.
 

talldog

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backhoeboogie":38ytcbkm said:
$2 is fair if everyone is happy. You can always buy a park bench or something to express gratitude.
I somewhat agree Smithy, but------ How about the cost a Rancher goes through to provide good American Beef compared to who knows whos Beef !! You can't stay in buisness without making a profit---for long ! :clap: :clap:
 

Workinonit Farm

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cfpinz":336kwt59 said:
I'm not a greedy person by any means, but I think the $2/lb is fair. That's what we sell ours for and I haven't heard any complaints yet. That little extra cushion will come in handy when one dies or gets sick, or feed skyrockets again. Crap happens.

:nod: :nod: :nod: Pretty much took the words outta my head.

Cypress, that's a fair price and you are not being greedy.

Katherine
 
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cypressfarms

cypressfarms

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chippie":3pka3iwi said:
Are they aware that they will not be actually getting the hanging weight in beef after the calf is processed?
Someone posted the percentage of actual meat after processing in another thread.

everyone who buys freezer calves is told exactly what to expect in terms of yield. One thing I do to make it friendlier - I usually wait to butcher until the calf is at least 1,100 pounds. I won't charge any customer more than $1000, so the extra meat is theirs for free. The butcher charges on pounds of meat, but I've never had a calf come in under weight yet. They normally run about 550 pounds hanging. The customers really seem to like to be able to choose how the meat is cut. One lady only wants steaks, roasts, and ground meat - and the ground meat she wants in 1-2 pound packages. I never really asked her where the ribs go :? , but once the calves are at the butcher it's the customer's property then.
 

terra8186

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A 550 lb hanging weight at $1,000 maximum is $1.80/lb hanging.

I like the way you are doing this. You get what you want out of the calf at $1,000 per animal and the customer may get a discount if it hangs good. I think your method is a discount. The going rate in our area is $1.65-$1.85 per pound. Other areas (from what I am told on the board) seem to be higher.
 

OLF

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cypressfarms":3r95mumh said:
chippie":3r95mumh said:
Are they aware that they will not be actually getting the hanging weight in beef after the calf is processed?
Someone posted the percentage of actual meat after processing in another thread.

everyone who buys freezer calves is told exactly what to expect in terms of yield. One thing I do to make it friendlier - I usually wait to butcher until the calf is at least 1,100 pounds. I won't charge any customer more than $1000, so the extra meat is theirs for free. The butcher charges on pounds of meat, but I've never had a calf come in under weight yet. They normally run about 550 pounds hanging. The customers really seem to like to be able to choose how the meat is cut. One lady only wants steaks, roasts, and ground meat - and the ground meat she wants in 1-2 pound packages. I never really asked her where the ribs go :? , but once the calves are at the butcher it's the customer's property then.

So, you feed the cow for a year to produce a calf, and then feed the calf for a year and a half (hay, worming, vaccinations, vet, meds, fencing, land, fertilizer, fuel, taxes, grain? and your labor) and you sell the finished steer for $1000? Do you make a profit? If I sell for less than $2000 I am in trouble.

Also, an 1100 pound steer should hang better than 550 pounds.
 
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cypressfarms

cypressfarms

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OLF":3pre4a6i said:
So, you feed the cow for a year to produce a calf, and then feed the calf for a year and a half (hay, worming, vaccinations, vet, meds, fencing, land, fertilizer, fuel, taxes, grain? and your labor) and you sell the finished steer for $1000? Do you make a profit? If I sell for less than $2000 I am in trouble.

Also, an 1100 pound steer should hang better than 550 pounds.

I've averaged 550 pounds hanging. I don't have a scale available, so I have to estimate their weight in the pasture. The butcher does tell me the hoof weight and hanging weight of each calf. The calves that are 1100 do yield more than 550, but since I estimate their weight by eye, not all calves come in at 1100. If youd like to get techincal I can, but I'm speaking in averages above.

Normally I sell calves at a stockyard, and get somewhere around $500 for a 6 to 7 month old calf. This is gross revenue. I can sell a butcher calf for $1000 gross revenue. I do have to keep the butcher calf longer and I do feed them out with grain supplement (not their entire intake) the last 30 to 45 days. Even when factoring in the extra expense of keeping them longer, I still come out $100 or more ahead by selling butcher calves. About the only thing that I don't compute in to the factor is grass/forage. The grass is more of a fixed cost - I am not close to the carrying capacity of the pasture I have - so I don't calculate that expense when comparing. The butcher calves do have more expenses like vacc, hay, grain, worming - but still provide more profit when everything is tallied.

Yes, I do make a profit, or I would take my marbles and put them elsewhere. If you need to get $2000 for calves, you obviously aren't selling commercial calves. It's hard to compare apples and oranges, but I can appreciate your position. Everyone has to carve out a place for themselves - around here having to get $2000 per calf is a train wreck happening.
 
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