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Freezer beef prices?
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<blockquote data-quote="ChrisB" data-source="post: 792067" data-attributes="member: 122"><p>Setting freezer beef price is one of the reasons that keep me from trying to direct market more animals. Here is how I see it:</p><p></p><p>The amount of work I have invested in an animal is irrelevant. I can spend a lot of time feeding by buckets, square bales of hay, etc. or I can use labor saving machinery. I can feed 5 head or feed 500 head. I can feed from a bag or I can raise my own feed. None of that adds any value to an animal - the animal will still weigh the same and be graded the same.</p><p></p><p>Now it is time to sell that steer; I can bring it to a local sale barn, packer, whatever and be paid market price of say $1.00/lb. Or I can sell this same steer directly to my brother, mom and dad, or friends for $1.50/lb. I personally feel guilty doing that. If my buddy has a repair shop and the going rate for a brake job all over town is $100 (market price), and I walk in the door and he charges me $150 does that sound like a good friend? Or does he feel that I can sleep better at night knowing who did the job and where the new pads came from so that is worth the extra cost? When I go to him for repair work I am expecting to pay the going rate, no more, no less. Why would it be different if he wanted to buy some beef from me?</p><p></p><p>I know people will say their beef is so much better than everyone else's and they can't raise enough beef to fill their orders. That is fine and I guess I am happy for you, but most consumers don't pay any attention to the cattle market and just assume they are getting a good deal if they buy direct from the farmer. And if you think your beef is better than what comes from a feedlot, I guess you'll have to explain to me how.</p><p></p><p>I'm not trying to insult anybody, that is just how I see things.</p></blockquote><p></p>
[QUOTE="ChrisB, post: 792067, member: 122"] Setting freezer beef price is one of the reasons that keep me from trying to direct market more animals. Here is how I see it: The amount of work I have invested in an animal is irrelevant. I can spend a lot of time feeding by buckets, square bales of hay, etc. or I can use labor saving machinery. I can feed 5 head or feed 500 head. I can feed from a bag or I can raise my own feed. None of that adds any value to an animal - the animal will still weigh the same and be graded the same. Now it is time to sell that steer; I can bring it to a local sale barn, packer, whatever and be paid market price of say $1.00/lb. Or I can sell this same steer directly to my brother, mom and dad, or friends for $1.50/lb. I personally feel guilty doing that. If my buddy has a repair shop and the going rate for a brake job all over town is $100 (market price), and I walk in the door and he charges me $150 does that sound like a good friend? Or does he feel that I can sleep better at night knowing who did the job and where the new pads came from so that is worth the extra cost? When I go to him for repair work I am expecting to pay the going rate, no more, no less. Why would it be different if he wanted to buy some beef from me? I know people will say their beef is so much better than everyone else's and they can't raise enough beef to fill their orders. That is fine and I guess I am happy for you, but most consumers don't pay any attention to the cattle market and just assume they are getting a good deal if they buy direct from the farmer. And if you think your beef is better than what comes from a feedlot, I guess you'll have to explain to me how. I'm not trying to insult anybody, that is just how I see things. [/QUOTE]
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