How to price beef?

[Ky hills]

We are fattening a steer and have friends interested in buying half. The processor we used before is a USDA inspected facility, and we were pleased with the overall job they did, but were disappointed with a few details. I was expecting to have a live weight recorded, as well as the end product, but they only had a end product weight, and we did not get liver, something about it may have had blemishes. Anyways I am wondering how y'all would price the meat? So much per pound of meat ( somewhere a little above ground beef and below steak and roast price ) + 1/2 processing fee?

 

[ddd75]

you can have the butcher split it for you. if you want the liver and extras it costs extra. you have to tell them.

pricing would be somewhere around the 2.25 / lb mark + / - plus processing.

 

[mwj]

We are fattening a steer and have friends interested in buying half. The processor we used before is a USDA inspected facility, and we were pleased with the overall job they did, but were disappointed with a few details. I was expecting to have a live weight recorded, as well as the end product, but they only had a end product weight, and we did not get liver, something about it may have had blemishes. Anyways I am wondering how y'all would price the meat? So much per pound of meat ( somewhere a little above ground beef and below steak and roast price ) + 1/2 processing fee?

My locker will not wrap the liver, heart or tongue unless you request it. He said less than 10% of customers would take them when they picked up there meat, and was wasted labor and and packaging for the locker.

 

[Farm Fence Solutions]

We charge based on live weight, and let the customer handle the butcher bill. 15-20 cents over market seems more than fair from my perspective. Butcher beef is more work than sending 40 fats somewhere on contract.

 

[Clod Hopper]

Don't sell it too cheap I sold 5 halves and three of my customers have already committed to next year and I feel like the other two will as well. Both said it was great. I sold mine for $1.60 live weight.

 

[circlebllc]

On the day of butcher delivery, I look at the daily average price. USDA dressed, hanging weight. My closest is in Iowa. Seems fair to my customers and me. I screen shot the daily and figure up the bill. Customer pays the butcher bill.

 

[boondocks]

Wow, I'm glad I don't y'all in my backyard selling home-raised nice beef for 2.25 finished and 1.60 hanging wt. If you can make money selling it at that, more power to ya I guess....

OP, keep in mind that it's hard to raise prices later on repeat customers, so set a price you can live with (or near) 5 yrs from now.

 

[Clod Hopper]

I want to make as much as I can but still be reasonable. My steers were 1250 lbs average February 17. Do you think $1.60 live weight was too cheap?

 

[True Grit Farms]

I want to make as much as I can but still be reasonable. My steers were 1250 lbs average February 17. Do you think $1.60 live weight was too cheap?

Quick figure is with you charging $1.60 lb the customer has $5.71 in a pound of beef plus the processing fee. I've never made a practice out of eating freezer beef so I have no idea how beef taste after being stored and frozen for a year. I do know that eating frozen seafood isn't nearly as good as eating fresh seafood.

 

[Son of Butch]

On the day of butcher delivery, I look at the daily average price. USDA dressed, hanging weight. My closest is in Iowa. Seems fair to my customers and me. I screen shot the daily and figure up the bill. Customer pays the butcher bill.

+1
A smart way of doing it.

 

[Clod Hopper]

I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.

 

[True Grit Farms]

I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.[/quote
One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight, 714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.

 

[Son of Butch]

I want to make as much as I can but still be reasonable.
My steers were 1250 lbs average February 17. Do you think $1.60 live weight was too cheap?

Extreme top here last week was 1.24 with most at 1.20 - 1.22
1250 x 1.24 = 1550 - $25 sale/fees = $1525
1250 x 1.60 = $2000
You received a $475 premium over extreme top for whatever special services you think you provide and wonder if
you sold too cheap?
LOL
Yes much too cheap, you should have gotten at least $3,000 head based on your good looks alone!

 

[Son of Butch]

I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702.
That works out to $2.71 plus $320.80 processing. Vacuum sealed.

One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight
714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.

1190 live weight x 59% = 702 x .60 = 421 lbs take home
1190 x 1.60 = $1904 + 320.80 processing = $2,225 divided by 421 = $5.29 lb take home

$321 processing was cheap, our butcher charges $469 to slaughter/cut/grind/process/wrap 700 lbs hanging weight.
Steer hanging 59% of live weight = almost finished, but could have used another 3-4 weeks on feed.

 

[boondocks]

I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.[/quote
One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight, 714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.

Sorry, TG and Clod, I was reading too fast and read live wt as hanging wt.
Living in a climate where we feed hay over half the year, and having a grass-fed herd (no grain), I have to try to get every nickel, and I don't try to compete with Wal-Mart meat. I will give away a quarter to a deserving cause or person (and have) before I'll try to go tow-to-toe on price with beef raised and processed in a mass-market grain-fed system. Maybe part of that is foolish pride!

 

[Clod Hopper]

Ok I see how you got 5.29 now I didn't take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don't think they were cheated. They got all their premium cuts for the same price.

 

[ddd75]

I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.[/quote
One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight, 714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.

Sorry, TG and Clod, I was reading too fast and read live wt as hanging wt.
Living in a climate where we feed hay over half the year, and having a grass-fed herd (no grain), I have to try to get every nickel, and I don't try to compete with Wal-Mart meat. I will give away a quarter to a deserving cause or person (and have) before I'll try to go tow-to-toe on price with beef raised and processed in a mass-market grain-fed system. Maybe part of that is foolish pride!

what do you sell yours at?

 

[ddd75]

Ok I see how you got 5.29 now I didn't take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don't think they were cheated. They got all their premium cuts for the same price.

you didn't cheat anyone, that was a fair price.

 

[willow bottom]

Ok I see how you got 5.29 now I didn't take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don't think they were cheated. They got all their premium cuts for the same price.

After all expenses what was your profit per animal?

 

[Clod Hopper]

I regret that I didn't take better records on feed. I know that is important. I only have one lot to keep them so I had a mixture of replacement heifers and steers that were too small to sell that I was growing on up a little. I am keeping four this year and I will try to do better because I want to know for myself as well. I did buy a bulk feed trailer so cost should be a little less per ton this year.