I was reading an article< i don't remember where but the jist of the article was that the meat processors and retailers were the ones making all the money off the beef WE raise. It said they they make more in 2 hours off our beef than we make in the 14-20 monthes it takes us to raise it. We sell it by the lb. then the processors process it and sell it to retail chains who then again mark it up to sell to the public. If we sell for $1-$1.50 a lb and the end seller is selling it for $8-$20 per pound, why are we leaving so much profit on the table. What are the prohibitive measures that keeps one from raising beef and re-selling it. I know the first thing you will say is having a customer base. But the answer is everyone in america is a customer.Anybody with a right mind eats beef. If you sell a 6-800 weight steer for lets say $700-$800. that same animal will then be feed out to slaughter weight. That same animal will sell around 400-600 lbs of meat at lets say an average price of $5 per lb. Less for hamburger more for steaks. that is $2-$3000 left on the table. Minus the butcher and feed to get him to slaughter weight. Why isn't this practice done more. I'm not saying slaughter 100 animals a year but start off slowly, build a customer base, and grow from there. Am I over thinking this or am I missing something here.
OK here goes
- Thread starter plbcattle
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Texas PaPaw
Well-known member
plb
Check out this link
http://www.stockmangrassfarmer.net/Bookshelf.html
SGF has numerous articles and a couple of books on direct marketing many types of farm products. Lots of good out-of-the-box thinking here.
Regards
Brock
Check out this link
http://www.stockmangrassfarmer.net/Bookshelf.html
SGF has numerous articles and a couple of books on direct marketing many types of farm products. Lots of good out-of-the-box thinking here.
Regards
Brock
Bill Elliott
Well-known member
I don't think you are "over thinking" this. Hard to say why more people don't buy from local farmers. I have been raising cows for only two years and keeping my herd small due to pasture space. We have always had "customers" for our beef. Sold 4 last year and have orders for 2 right now. My neighbor sells 20 each spring. We both sell for about $1.60 - $1.75 per pound hanging weight. You don't get rich that's for sure. The beef is soooo much better than store bought. I only want to "sell" 4 or 5 per year..and I'm almost half way there. I advertise on the internet and local paper. Like I said...you don't get rich but it's enjoyable. We put over 500lbs of beef in our freezer last spring...still some left. Best of luck.....Bill
Every year we have a few head to sell for butchering, we started with family...and it kinda spreads. Biggest problem I hear from people is not having that much money available for 1/4 plus processing at one time. Easier to pick up $6 of hamburger tonight, then a few hundred dollars. Even tho these folks can do that math and know they would be coming out ahead both with $$ and quality. It is just hard for some.... Last I sold was $1.35 on hanging weight and they pay for their own processing, usually averages out at $ .37 per pound. And, I pass off all slaughter/splitting charges equally. Still comes out to be less than $3/pound across the board for net weight. You can't hardly find hamburger for less than $3 a pound.
Oh yeah, another problem customers seem to have is rationing....they love the steaks and roasts, and have a field day with those until they are gone, and then they are left with hamburger only.......
Oh yeah, another problem customers seem to have is rationing....they love the steaks and roasts, and have a field day with those until they are gone, and then they are left with hamburger only.......
mitchwi hit a key that its easier to go buy a weeks worth of beef instead of a couple months. then storage factors in.
but thats the customer side of it. the raiser's side of it is its going to cost alot of money to get set up to sell cut beef to compete with the local markets. if you can butcher your self and have the place that passes state and fediral codes you can compete with walmart and probally sell more beef than you care to. this will take up a big time share off the chores that needs attending to around the animals and what not.
this is a very good idea. and its probally how they use to do it sorta. but capitaltion keeps us little people down. the big people make their money off our labors. it would be nice to make the money that your labor deserves huhh?
but thats the customer side of it. the raiser's side of it is its going to cost alot of money to get set up to sell cut beef to compete with the local markets. if you can butcher your self and have the place that passes state and fediral codes you can compete with walmart and probally sell more beef than you care to. this will take up a big time share off the chores that needs attending to around the animals and what not.
this is a very good idea. and its probally how they use to do it sorta. but capitaltion keeps us little people down. the big people make their money off our labors. it would be nice to make the money that your labor deserves huhh?
Susie David
Well-known member
We sell to the "end user" market and always sell all our steers every quarter. Only four or six at a time but it keeps the electric bill paid.
andybob
Well-known member
There is definitly a growing demand for home grown meat.
I have always sold some of my stock direct,3 year grass fed beef, free range pigs, eggs and poultry. I helped a friend set up a regestered farm shop just outside Salisbury in England.
He is now selling about 10 free range pigs per week as pork, 2 or 3 as home cured bacon and smoked hams. About 3 North Devon grass fed steers per month, because of B.S.E. regulations, they have to be under 30 months, so they are slaughtered a week before they turn 30 months. Lambs, poultry and eggs are supplied by local free range producers and are identified by producer. Yhe big secrets are correct genotype for grass feeding, and maturing the beef, pork and lamb to promote tenderness and bring out flavour. To add value to the ground beef and pork I started a line of speciality sausages which drew coutomers, and gave an outlet for unsold meat. I made some South African Boerewors (beef sausage) for an expatriate club and offered the surplus at the shop, within 3 months they became the biggest seller. I had to let Phillip have my 'secret ' recipe so as not to damage his business.
Check localhealth regulations, reasearch your market,start small untill you feel comfortable enough to expand, MAINTAIN QUALITY,and go for it!
I have always sold some of my stock direct,3 year grass fed beef, free range pigs, eggs and poultry. I helped a friend set up a regestered farm shop just outside Salisbury in England.
He is now selling about 10 free range pigs per week as pork, 2 or 3 as home cured bacon and smoked hams. About 3 North Devon grass fed steers per month, because of B.S.E. regulations, they have to be under 30 months, so they are slaughtered a week before they turn 30 months. Lambs, poultry and eggs are supplied by local free range producers and are identified by producer. Yhe big secrets are correct genotype for grass feeding, and maturing the beef, pork and lamb to promote tenderness and bring out flavour. To add value to the ground beef and pork I started a line of speciality sausages which drew coutomers, and gave an outlet for unsold meat. I made some South African Boerewors (beef sausage) for an expatriate club and offered the surplus at the shop, within 3 months they became the biggest seller. I had to let Phillip have my 'secret ' recipe so as not to damage his business.
Check localhealth regulations, reasearch your market,start small untill you feel comfortable enough to expand, MAINTAIN QUALITY,and go for it!
We are beginners, having had our herd only 14 months. We have a mixed herd of mostly Angus. We made it through calving last winter, buying a bull and think we have the cows bred back for fall calves. We'll have them preg checked March 1 or so.
I have a couple questions. The beef that is nearing slaughter is an Angus/Hereford cross. He is a bull. A butcher, who has since left the area, advised that leaving him intact would cause him to gain faster...meaning tenderer meat.
He'll be our first cash back into the system, so we are looking to harvest him at 18 months. From what I've read here I realize that may be too early. Will he be marbled by then? Is marbling a weight, age or feed thing? He is grass fed and my customers don't want him finished on grain.
My other question is in reguards to pricing. I have heard $1.05 # live weight and $1.75# hanging weight locally. What percentage of live weight is hanging weight and what percentage of that is net to the customer. In both cases they had the customer paying the kill cost and the processing at about $.35 pr#. I think the processing is based on hanging weight.
Also I have heard that aging 2 weeks is a must on grass fed.
Anybody out there who can help me out?
I have a couple questions. The beef that is nearing slaughter is an Angus/Hereford cross. He is a bull. A butcher, who has since left the area, advised that leaving him intact would cause him to gain faster...meaning tenderer meat.
He'll be our first cash back into the system, so we are looking to harvest him at 18 months. From what I've read here I realize that may be too early. Will he be marbled by then? Is marbling a weight, age or feed thing? He is grass fed and my customers don't want him finished on grain.
My other question is in reguards to pricing. I have heard $1.05 # live weight and $1.75# hanging weight locally. What percentage of live weight is hanging weight and what percentage of that is net to the customer. In both cases they had the customer paying the kill cost and the processing at about $.35 pr#. I think the processing is based on hanging weight.
Also I have heard that aging 2 weeks is a must on grass fed.
Anybody out there who can help me out?
Bill Elliott
Well-known member
cowmamma.....
I'm fairly new to raising cows also but here's my thoughts. My brother-in-law fed out both steers and bulls and to be honest I couldn't really tell the difference in the meat. I'm sure there is a difference but I really couldn't tell....both very good. Of course I'm comparing to "store bought" meat but still both were very good. We feed out last 100 - 120 days on 14% calf feed which is basically corn/corn product along with minerals added. We feed our cows out earlier than most...put in the feed corral at about 12-14 months. We feed out younger because we believe it reduces the cholesterol content of the meat.
We are in lower Alabama and the going price is about $1.60 or so per hanging pound. The folks I know that sell by the live weight sell for around $1.00 per pound. Don't hold me to these figures but good "ball-park" numbers are....for a 1000lb live weight cow...will hang out about 600-625lbs....will dress out around 400-450lbs. You will also loose weight while it ages..maybe 5% or so...most people age their meat for at least 2 weeks. We charge for the hanging weight before aging. The processor I use charges $.42/lb plus $30 slaughter fee. I'm getting ready to feed out a little bull for the first time (brother-in-law recently passed away and I'm on my own now) so will learn first hand.
Hope this helps...I'm new just like you and learning each day...and certainly not an expert...plenty of people on here can provide more "seasoned" advice. All the best to you...Bill
I'm fairly new to raising cows also but here's my thoughts. My brother-in-law fed out both steers and bulls and to be honest I couldn't really tell the difference in the meat. I'm sure there is a difference but I really couldn't tell....both very good. Of course I'm comparing to "store bought" meat but still both were very good. We feed out last 100 - 120 days on 14% calf feed which is basically corn/corn product along with minerals added. We feed our cows out earlier than most...put in the feed corral at about 12-14 months. We feed out younger because we believe it reduces the cholesterol content of the meat.
We are in lower Alabama and the going price is about $1.60 or so per hanging pound. The folks I know that sell by the live weight sell for around $1.00 per pound. Don't hold me to these figures but good "ball-park" numbers are....for a 1000lb live weight cow...will hang out about 600-625lbs....will dress out around 400-450lbs. You will also loose weight while it ages..maybe 5% or so...most people age their meat for at least 2 weeks. We charge for the hanging weight before aging. The processor I use charges $.42/lb plus $30 slaughter fee. I'm getting ready to feed out a little bull for the first time (brother-in-law recently passed away and I'm on my own now) so will learn first hand.
Hope this helps...I'm new just like you and learning each day...and certainly not an expert...plenty of people on here can provide more "seasoned" advice. All the best to you...Bill
I think you overshot this one. While it may seem that there is oodles of cash to be had in the beef industry. The feeders are happy with staying in the black. Figure buying a 500lb calf for 700 bucks and paying people to feed it doctor the sick devil and figure the tonnage the sucker will eat. Then you sell it for 1150 not alot to be had on their end. The Packer isn't much different, massive amounts of labor and overhead make it tougher than you think to turn high margins but they do make money but they sell it wholesale and the retailers do the final cuts and the marketing which includes the ads in the sunday paper down to the stuff they have to throw out cause it wouldnt sell. In the end we hope they all stay in cause they keep prices up. In reality producers can sell on the grid but many don't because they get docked for lack of quality and they can't do it as efficently. In a small operation if time and opporitunity were factored in i don't figure it would be likely that you could stay profitable by feeding cattle out and marketing directly.
farmer4620
Well-known member
I gain around 300 bucks a head buy selling it direct to customers and only thing more it takes is callin people to sell it and then sending bills...plus the locker plant is closer than the sale barn...id say its worth 300 bucks a head to do it
This statement refers to a persons ability to work for peanuts and not know it. Through others methods a person might find a better use of there time unless they are feeding out calves in quanity.
I will agree that if you are going to feed out calves direct marketing is probably a better option than bulk sales although bulk sales allow for you to sell alot of cattle at once.
