my costs for finished beef

[Kathie in Thorp]

See that's where you're not understanding...my costs are fixed. My profit isn't. Looking at my original post. I profit 350 based on 1000# live weight. That's not taking into acct the costs I don't have hard #s on.
I have told them they could get it cheaper...they don't want cheaper they want to know exactly what they are getting. They see the calf raised, usually as soon as I get it, or its born.
Yes, I would have and still have their trust. In fact, I can call 2 of them right now, get their permission to have you call them and you can tell them your self. I know what they'll say...

Hook, that's what our buyers want, too -- they want to know source, history, humane care, no extra drugs, no crap in the feed. We've had these steers since they were 500 lbs. or so -- one came with his mama, we had to buy the other two. We fed them through last winter (feed costs + time/labor), they grazed through the summer and are now in dry lot with plenty of room to roam around for 60 days on alf, plus COB and rolled corn (8 lbs. day COB and 6 lbs. corn). Ours on the rail this year will be $2.75/lb. I'm hoping that 2 of the steers will be at 1,000 lbs. end November when we slaughter; the 3rd, a Jersey won't run that heavy. All our buyers except 2 are taking a full half; 2 others are splitting a half. All have pd. $125 deposit, no matter what they're getting. They will reimburse us for $75 per animal kill fee, and they'll pay the cutter directly at 47 cents/lb. to cut/wrap. By the time all that's done, they'll have put out just over $3.25/lb. when they take the white packages home. But X-lean burger costs more than that!

Hay prices here are huge -- most is export quality. If you want just plain, garden variety, decent hay, then you have to drive 75-150 miles to get it .

For us (small), figure an average of about 40 minutes a day doing chores--which doesn't count cleaning out the shelter areas, frozen water issues in the winter, transporting/off-loading hay, irrigating, costs of spraying for weed control, etc. -- I don't see a problem with your pricing. Our buyers are welcome to come out and look at the steers, our set-up, etc. -- most don't want to. They don't want to look into those big brown eyes and think about eating the rest of him later.

 

[Anonymous]

Sounds like you're on top of what your buyers want Kathie.
Mine, they usually see what they're getting once a month, usually more often. I'm raising a pig for one of them now in addition to him wanting more beef that I don't have right now. The pig I'm doing at direct cost because raising pigs here isn't cheap either and whether I have my normal 2 or a third isn't any extra effort on my part. Although I fully expect him to kick me a few bucks extra just because that's the kind of guy he is.

 

[Kathie in Thorp]

Sounds like you're on top of what your buyers want Kathie.
Mine, they usually see what they're getting once a month, usually more often. I'm raising a pig for one of them now in addition to him wanting more beef that I don't have right now. The pig I'm doing at direct cost because raising pigs here isn't cheap either and whether I have my normal 2 or a third isn't any extra effort on my part. Although I fully expect him to kick me a few bucks extra just because that's the kind of guy he is.

Our place was originally built 30+ years ago as a high-tech hog operation. We have lots of buildings, most w/ concrete floors that are purposely uneven, drainage built in, etc. I'd love to raise a hog, but the space has now been designated to other purposes -- don't have space to raise a darn pig, although a couple of our beef buyers have asked us to!

Last year, we sold 2 steers; this year 3 steers. We have people on the wait list, so I've got one already here, and we're locked into to 3 more end November, when the big boys go away.

 

[Anonymous]

24x8 will house 3 pigs probably more...they don't need much space. I don't like to crowd them too much tho

 

[inbredredneck]

hook I'm just trying to help you understand why others are less than pleased with your pricing. Taking in all costs you are charging $800 more than what your selling actually would cost.

 

[Kathie in Thorp]

24x8 will house 3 pigs probably more...they don't need much space. I don't like to crowd them too much tho

We've already got plenty to do! Don't think we're going to venture into the hog business.

 

[Anonymous]

Inbred, again, I understand what you're getting at. I hope you are beginning to understand that I'm not making a huge profit and that my buyers aren't concerned as much with cost as they are with knowing what they are getting.
Thanks for your input. Truly

 

[Kathie in Thorp]

hook I'm just trying to help you understand why others are less than pleased with your pricing. Taking in all costs you are charging $800 more than what your selling actually would cost.

I've sort of lost track, on this long thread -- Is Hook's time/labor for all the extraneous work and costs that goes into cattle figured into this? LIke irrigating costs, additional labor as needed, weed control, getting hay in and into the barn, misc. vet costs which would include vaccinations, worming, Bangs (if you're producing your steers, rather than buying them). Oh, and let's not forget keeping the bull(s) or doing AI; equipment/facilities maintenance . . . . What am I forgetting ??

 

[Anonymous]

Nope..in fact I didn't even mention I pay 50/ per cow to rent/borrow a bull. Cheaper than ai here or running a bull year round.
I would be interested in thoughts on how I can reduce my input costs but maintain my current program/ideals.

 

[inbredredneck]

Katie the $2.47 hanging was all costs associated with getting the market topping steer into wax paper.

 

[Kathie in Thorp]

Katie the $2.47 hanging was all costs associated with getting the market topping steer into wax paper.

It's KATHIE -- not KATIE. And (sorry -- am losing track of all the points trying to be made!), the point you were trying to make was WHAT ???

 

[inbredredneck]

my point is the very best quality market topping steer can be bought for $2.47 per pound hanging in wax paper packages

 

[CottageFarm]

Inbred, I still don't understand your point. Even using your cost numbers, at the price that Hook is selling his product, he would be averaging a little under 30% Gross margin. I'm not sure what you do for a living, but in any business that's at the low end a perfect gross %. He is providing a high quality product to retail customers for 40-50% less than retail. I simply cannot understand your, as well as some others, problem with this.

And while there may be a very few people around actually willing to buy a live animal at a sale barn & send it to the processor, it's RARE. So I call :bs: on your post about lots of average beef consumers doing it that way.
I'm pretty sure that's how grocery stores manage to stay in business.

As an aside, it sure would be nice if we had a processor around here that only charged .45/lb.
I knew some prices were higher here but I'm paying .65 for beef & .70 for pork

 

[Kathie in Thorp]

Inbred:

Maybe where you're at -- I don't know where you are. And I don't know what your buyers want to know about your beef. For beef steers, raised right, what we get doesn't even cover our costs and time, if our time is worth anything -- and if we had to pay someone for "time," we'd be way in the hole! Basically, what we sell pays for the 1/2 beef we put in our freezer. There ain't no profit there! Hook apparently has long-time customers. They aren't stupid; they could probably go from ranch to ranch to look at cattle in his neighborhood. They like what he raises. Good for him! He's not losing his a$$ by providing a good quality product to friends. No crime there. I'm there for 'ya, Hook!

 

[Anonymous]

Sorry, ill be back in a bit. Grilling these beauties right now

 

[inbredredneck]

cottage you must have forgot all the profit in the first $2.47. Well I've tried to get any of you too look thru the window from the other side of the glass. Didn't work

 

[Anonymous]

The difference I think is mass produced vs custom

Custom always costs more, mainly because custom can't buy in bulk like mass production. And it doesn't matter if you're taking beef or cars or tonka toys

 

[Kathie in Thorp]

cottage you must have forgot all the profit in the first $2.47. Well I've tried to get any of you too look thru the window from the other side of the glass. Didn't work

Well, I'd like to get diesel back down to below $3/gal. (it's $4.19 here now), and I'd like to buy hay for $100/ton, and steers for 75 cents a pound, pay nothing for maintenance on equipment, never have to fix a fence, or do all the other stuff that it takes to raise beef. But that isn't happening. So, the view from your side of the glass is a whole lot different than what I see from my side. You are, however, entitled to your own opinion.

 

[Kathie in Thorp]

The difference I think is mass produced vs custom

Custom always costs more, mainly because custom can't buy in bulk like mass production. And it doesn't matter if you're taking beef or cars or tonka toys

Yup.

 

[Kathie in Thorp]

Sorry, ill be back in a bit. Grilling these beauties right now

I think I'm late for dinner . . . .