I`m fixing to put up some steers for sale as freezer beef . Need to be sure going in everyone knows the price and with the price jump on feed was trying to decide how much I need to raise the per lb. price on the rail and just wandering what other folks are doing . I`ve been getting $2.00 lb. hanging weight but I`ll have to go up to cover the rise in hay and feed .
Freezer Beef Prices ??
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if your just looking to cover your increase in feed costs simply divide the your average carcass wt. into the average feed increase cost.
example: lets say an average carcass wt would be 700 lbs and corn costs have risen about $110 per head. (assuming a $2 increase in corn for 55 bu.) $110 / 700 = $0.157 per pound increase on the carcass wt. in your situation you would need to also include protein, hay and mineral costs as applicapable.
this works well for me as i've been feeding calves long enough to know what my average carcass wt and feed requirements will be prior to feeding out.
ROB
example: lets say an average carcass wt would be 700 lbs and corn costs have risen about $110 per head. (assuming a $2 increase in corn for 55 bu.) $110 / 700 = $0.157 per pound increase on the carcass wt. in your situation you would need to also include protein, hay and mineral costs as applicapable.
this works well for me as i've been feeding calves long enough to know what my average carcass wt and feed requirements will be prior to feeding out.
ROB
I`ve been cow/calf for over 30 yrs. and have just started feeding for personal sale the last 5 yrs. or so . Started with a few freinds and it is growing every yr. When I started feed was cheap as was hay that I bale myself but now a guy has to do a little more figgerin . I bale my own hay but what was a $2 bale could now be sold for $6-$7 instead of feeding it and we know where corn is . I`ve been thinking a 25 cent raise per lb. and that seems to be about what your figgers say . ThanksROB":iskzhm68 said:
MrBilly
Well-known member
The problem I have with fixing a price now is that we take orders at the begining of grain feeding. We feed up to six months. Once we take an order the price is fixed, even if our costs go up. We have built in a cushion, but this year I may need a whole couch. Two months ago our grain went up 7% , last month it went up 17%. I bought enough for a couple months. Right now, I advertise our price as Market Price and we will put people on the list without giving them a cost. This will go on until summer, when we really start the feeding cycle. At that time hopefully we will see where things are headed????? Some sort of a flexible price system is the only way to go, what that is now, I don't know. I'm thinking of setting a comfortable price at the time of the start of feeding; build in a clause that the price may increase up to a certain percentage maximum to cover our increasing costs. If they don't like it, they don't have to buy. I believe our loyal customers will go along with this since they want us to continue to provide their beef. I don't plan on being Santa Claus :santa:
Good luck.
Billy
Good luck.
Billy
grannysoo
Well-known member
We're at 2.50 lb + processing. Normally runs out at about 3.00 per pound.
MrBilly
Well-known member
Good point Howdy, I need to check.
BIlly
BIlly
bigbull338
Well-known member
i dont know how meny steers you feed out.but you should be able to lock in a feed price for awhile.or buy bulk feed at a somewhat cheaper rate.because your taking so meny tons at once.
dburkhart
Well-known member
We just increased our prices to $3.15, which includes processing.
hayray
Well-known member
I have been selling whole beefs for $4.25/lb cut weight or $2.65/lb on the rail. Nobody has much money in my state to buy much anymore so I can't raise my prices anymore. My sales are a quarter so far of what they were last year at this time. Just bought 100 bushel of corn yesterday at $5.75/bushel. Last time I set my prices corn was $2/bushel. The local Kroger grocery store yesterday had T-Bones on sale for $4.75/lb., sure it wasn't choice but people are buying it, I have to sell mine for $12.75/lb out of my freezers.
MrBilly
Well-known member
Last year we charged $3.43/lb hang wt. We don't sell it that way, but calculates out to be that. It will be higher this year. We sell at live wt (last year $1.62/lb + sales 7% tax because not sold to someone for raising - I didn't dream this one up - Dept. of Revenue told me I had to) plus processing.
Billy
Billy
MrBilly
Well-known member
1150 to 1200 lb., occassionally a bit lighter.
Billy
Billy
kscowboy
Well-known member
I'm in that 1.15 live or 3 bucks a pound cut area. My question is what are ya going to go up to next year , where is retail meat pricing headed ?
dieselbeef
Well-known member
2/lb hanging...
MrBilly
Well-known member
Retail prices here for beef have held steady, but I think that will change this summer. The feed lots are loosing money and once clear inventory, they will be in a better position to negotiate based on present real costs. This will lead to packers paying more and then charging more.
Billy
Billy
