marketing whole/half beefs...

milkmaid

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For those of you who do that, how easy do you find it is to get buyers for a half or whole beef? Obviously that would depend on the area, I know, but - any comments? I've got two 7wts that we were planning to butcher ourselves but it's beginning to look like we won't need them at all. Been thinking about feeding them out and putting an ad in the paper (probably closer to November), but I just want an idea of how easy (or not!) it would be to sell these two that way before I go to all the time and money of feeding them out. Might be easier to just run them through the auction now.

Thanks! ;-)
 
We always have someone who knows someone that will buy some meat if ever sold. All it takes is one taste of the home grown meat to make one a believer. The stuff you buy in a grocery store just doesn't compare. My brother is a sales manager at a car dealership here in town and they are always hounding him for home grown beef as he's sold some there before. I mostly sell to friends and friends of friends. Good luck! This might not be a bad time of year to sell as around here it would be hunting season and allot of people mix beef and pork into their deer sausage.
 
Are your selling Holstein steers??? For many people a side, or a whole beef, is too expensive or too big for their freezer.

We have had better success selling heifer split halves. They fatten at a lower weight and the sticker shock is less.

We are thinking about selling beef bundles to give people a taste. We are looking for folks who pay some attention to quality. You do not want to negotiating with folks who compare you with the on sale commodity ground beef at the local chain store...

Fall is not the best time to sell here. Too much "free" vension is available.

Good luck on Marketing. It's not my favorite task.
 
milkmaid":aygmiqa7 said:
For those of you who do that, how easy do you find it is to get buyers for a half or whole beef? Obviously that would depend on the area, I know, but - any comments? I've got two 7wts that we were planning to butcher ourselves but it's beginning to look like we won't need them at all. Been thinking about feeding them out and putting an ad in the paper (probably closer to November), but I just want an idea of how easy (or not!) it would be to sell these two that way before I go to all the time and money of feeding them out. Might be easier to just run them through the auction now.

Thanks! ;-)

MM

There might be some pickings for you here - have a peek and think on it. It is a tough game to get into, but when you get there you can make money.

We are down sizing due to returns in the Canuck market - but it still holds true to this day.

Have a look and do as you think might be best. Do not worry about thiose who cannot go the complete half - they may decide to split with another family. Watch the triflers - they can make promises they know they will not keep.

I wrote this some time ago on another board - but you might find it interesting. Numbers have changed a bit - but they are still close and all info applies to our operation.

Best of luck,

Bez?
-----------------------------------------

I think you mentioned you might sell some cattle to the local market. We usually sell about 30 a year right out the farm gate. We have a good butcher and we also have the meat inspected. The customers are welcomed to come to the "pick" field to pick out the animal they want - most get a good bit of enjoyment out of this.

We let them throw a little corn to the animals - seems the folks from the city like to do this sort of thing. Keep them in the back of the truck when the herd comes around - saves a bunch of potential trouble! We record the tag number and then cut out the animal for slaughter.

Make sure the butcher tapes the tag number to the top of the frozen pile of meat.

You meet some great folks and some not so great - the nice thing about being the boss is you can tell the not so greats that you are not interested in their trouble.

Build a good relationship with the biutcher - if it costs a bit more, it is sometimes worth it - a quality product is always in demand.

Our animals only go when there is a complete steer of heifer sold. Nothing less than halves and they pay $2.50 per pound hanging weight. I do not kill until the cheque has cleared with the new clients and that has put a stop to the "back outs and bad cheques". I take a minimum of $400 bucks up front with new folks. Otherwise it is all or nothing. The old reliables and this family do business both in advance or upon pick up - with no hesitation. Cash is king if you get my drift.

This year we are booked with only about 30 going to the sale barn - the remainder another 40 or so will go out the gate. I am not so sure we want to get any bigger.

We strictly grass our animals and the selling starts in late August.

It takes some time to build this clientelle and you will have to sort through the dead wood. But after you get it set up it does pay. Our average side weighs in at 325 pounds and we go through 60 of them a year. We intend to grow another 10 - 20 sides this year and then stop - it is a big committment and time vs selling has reached the maximum

Out of that we pay the kill - 50 bucks and the cut and wrap - total butcher costs per cow are usually in the neighbourhood of 300 - 350 bucks. It can be done cheaper, but the quality of the man doing the work justifies the cost - at least to us. We usually gross about 1600 - 1650 per animal. So we tend to clear about $1200 - $1350 per animal sold. I wish that was all profit, but it does allow us to pay some bills!

So if you are small and starting out try the newspaper advertisement - it worked for us on a small way and might be your big start. If you are unsure you can sale barn one and try farm gating the other - gives you some cash while looking for customers. As time marches on you can start selling out the door - not for everyone - and everyone has horror stories - including us - but they are almost non-existent today.

Whichever way you go - work your butt off and be honest - your name is everything in the cow game.

It is great to see some new blood - especially your younger blood - enter this game - us old farts are on the way out - you keep at it - it is a tough game but worth it in the end.

Best of luck in your new endeavour - WATCH YOUR PENNIES!!
 
Thanks folks! -and especially thanks Bez! :) That's a lot of stuff to think about.

They are both holsteins, one freemartin heifer, other's a steer. They should be 710 and 730lbs at the moment based on previous gains; I thought I'd put them on grain ~800lbs in early August (yearlings) and butcher 90 days later in November. Little over 1000lbs, I think. Wouldn't be truly finished but then again that'd be some awful big animals. :lol:

How's that sound?

It'd be lean, all natural, corn fed beef with no hormones. :lol: Can't say no antibiotics because I know I gave the heifer pennicillin once for a navel infection. The steer's good though.

I've figured out most of the numbers on paper and I'm certain I can make quite a bit more selling them straight to the consumer than walking through the auction -- if it all works as planned. :P
 
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As noted on a previous reply - it is a lot of beef and a lot of money at one time, some folks just can't afford it. However, I personally will not let someone "make payments". With the cost of processing, feeding out, time involved - I prefer to just take 'em to the sale.
 
So Bez and bullbuyer - if I've read your posts right you do not make the buyer pay processing? they pay for hanging weight or on the hoof but not processing fees? Interesting. Why? why not have the buyer pay the butcher costs?

No, I wouldn't let someone "make payments" either - I don't play that game. LOL. Interesting point - Bez - that you raised about requiring a deposit so they don't back out on you. That's sure good to keep in mind.

Anyone else have any other comments or thoughts on the matter?
 
milkmaid":2ag6ot0f said:
So Bez and bullbuyer - if I've read your posts right you do not make the buyer pay processing? they pay for hanging weight or on the hoof but not processing fees? Interesting. Why? why not have the buyer pay the butcher costs?

No, I wouldn't let someone "make payments" either - I don't play that game. LOL. Interesting point - Bez - that you raised about requiring a deposit so they don't back out on you. That's sure good to keep in mind.

Anyone else have any other comments or thoughts on the matter?

I have often thought about the processing costs MM. But in the end we were trying to build a clientelle. We also wanted to make money. This cost to us still allowed us to make money.

It actually helped keep the farm when tough times came.

When someone buys a side of beef at the butcher shop they pay a total cost - they do not buy the half and then have additional costs built in. In fact the cost of processing is already built in and the retail price paced where the company believes the client will buy. If the price is too high they go away. Remember this - it is important. People will ONLY pay what they believe to be a fair price - additional costs drive them away.

Adding the cost - to the client - seems almost like buying a new vehicle. You can have the car / truck - but if you pay a certain amount of extra we will put tires on it for you.

So the client wants a price - give it to them - and stick to the deal. They come back.

Bez?
 
Bez - Who are your clients? Do you find its mostly families or friends going together to buy, or do you have some retailers who market the grass fed beef in there as well?

Also, are you still getting the same 2.50 per pound or have you adjusted since then.

When you came up with your 2.50 per pound did you take into account the butcher cost that was added in or did you base it on what other places were getting with the butcher cost either added in or not, if that makes sense.
 
We sell an interest in a live animal, and the customer pays for the processing of his interest or share - 1/4 share minimum.

We let people make payments, works great and provides us with a stream of income while feeding. It works like this. They make a $50 deposit to get into our program, then they have the option of paying monthly prior to picking up the beef. The total is paid in full two weeks prior to picking up the beef. This also includes the payment for the processing. Since we do this once per year, we are now taking orders for the spring of 2007. With sixty or seventy customers paying regularly it really is great. Had one old lady loose her job housesitting an old man and she couldn't come up with the rest of her payment. No problem, we returned her payments. We have an alternate list of people who want beef should someone back down - has occured only twice in four years. An alternate took the beef and made the full payment.

Think it through. Set it up correctly and payments are fine!

We have never been face to face with most of our customers, just contact by mail, or email and occassionally phone.

Billy
http://www.sellfarm.com
 
milkmaid":fhy4ar55 said:
For those of you who do that, how easy do you find it is to get buyers for a half or whole beef?
Thanks! ;-)

Since beef is my "hobby", there are about 1000 Engineers, Technicians, Mechanics and such here where I work. For several years I split a beef with someone. Folks come after me now.

I am small time so its pretty easy. As of right now, I think there are orders for 7 halves, next year. So I am figuring on feeding out atleast 4 steers that will be born this fall. I will haul them to the processor about early June of '07, give or take. I may get more orders between now and then. I may have too many heifer calves born versus bulls/steers/.
 
Milkmaid....We operate similuar to Mr Billy. In WA there is no tax on the sale of live animals and no USDA inspection or processing is required when the owner(s) process their own animal.
We sell shares in the live animal and broker the processing. The customer gets one bill detailing the transaction.
We have built a customer base over the years and send updates and order forms every quarter.
Keep the customer informed.
We have started selling cut beef at the farmer's market this year with OK results but have taken additional orders for locker beef and have passed out hudreds of flyers. If 10% of the interested folks order beef this fall we'll need another herd...won't kill the animal until the order form is in hand.
Good advise about taking deposits from the new customers or the ones that give you that certain feeling.
We have been grain finishing but have grass finished two for cut beef sales. Our customers and the folks that we have been talking with are looking for "organic" meat but easily settle for "natural" because we feed winter alfalfa from a fertilized field. There was an article in Time (June 12th) magazine about grass finished beef that has caused a shift in the buying habits
of the folks here.
We're really considering going to a total grass finish as our market is requesting.
Sorry about running on....hope that some of this helps.
Dave Mc
 
I used to do it but I just got tired of trying to explain the loss in hide, bones, gut, and stuff. I can't tell you how many time I have heard "well I thought I would get more meat than I got, what happened"?
 
MM,
We threw around selling some steers before this way. We came to the conclusion that it was a bad idea. Several reasons for us are the liability. Living in crappy California this is a large issue.
All it takes is one a$$ to make everything go bad. They may not think the meat is good enough, they might not get what they expected...... The list goes on. Not to mention if they take your meat and get sick off it for one reason or another (having nothing to do with you) they will come back to you. Even if you are in the right, it is still a headache you don't need.
The only way I sell beef is on the hoof. They can kill it and do what they want with it. It is a set price per pound and it is written in a bill of sale that it is being sold as is.
If you were going to market them threw the auction my recomindation would be to write up what has been done with these animals and have the auctioneer market them for you. Might bring a better price that way.
Best of luck!
Keep us posted on what you do.

Double R
 
Central Fl Cracker":3r9wivvo said:
How does the price compare per lb. to what consumers pay at Publix or whatever food store is in your area's?

Depending on the breed, you are going to invest about $3 a pound, take home, and that figure is a bit conservative. Excellent meat. Better than anything you can buy at a meat market. Apple and Orange comparison to your "food store" question.

An very good 1100 or so pound steer cost me $408 from the processor for processing, last run. That price included packaging, tenderizing - everything - to my specifications.

If you feed one out for a while you're spending about $2 a day for good feed to get him to where you want him. That's $60 a month feed only, if you have good grass.

You could sell him at about say 6 months for $500, give or take at current prices.

So you take the inital $500 value, figure costs for a few more months grazing (say $100) + feed, you're in the $750 proximity. Then add the $400 for processing. You've got fuel cost to haul it to the processor and fuel cost to go pick it up.

The yield of actual meat is going to be around 450 lbs plus soup bone, liver, heart etc. (I didn't actually weigh the boxes of meat I picked up last year) "Hanging weight" is not packaged weight.

I have had several processed through the years. A good processor went out of business. I tried a new one and I didn't get my animal back. I had no way to immediately prove it, but I got burned.

Last year I drove all the way to Hamilton, Tx, based on reference from others. I got excellent service and meat. I was very pleased. A few more nickels spent of fuel for me tho. I'm heading back there in 10 days with two steers.

When you process your own, you know what you are getting. Unless of course, someone burns you at the processing plant and gives you something different. Find out who to use before hand.
 
Last month we took in a 800 lb steer and got back 480 lbs of meat.
Processing cost was $231.40
Feed costs were $186.00
Fuel wasn't much $ 20.00

for a total of $437.40

That's not giving a value to the animal to start with or the vaccines he got as a small calf (which don't cost much) Whatever a 400 lb steer would be, that's what he weighed when we started feedin him. Still a much better price per lb of meat than what you'd pay at a grocery store.

The calf was one of ours that we pulled from the pasture to feed out. So, I don't really put a value on him as a freezer calf per say because he didnt cost what he's worth to raise.
 

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