price for butcher beef

[arkie 74]

I was approached by some people last night. They wanted to buy a butcher beef and i have no idea how to charge. New to this process any suggestions would be appreciated. Thanks

 

[shaz]

Last I sold was 4.30/lb pakaged and out the door for a whole. I may have gotten 400lbs of meat out of an 1100lb steer and this was last year on a grass finished calf. That doesn't mean you should price it that way.

You'll have to figure the cost of the calf + feed + butcher + profit. Sounds easy huh? I just got two steers processed and it would have cost around 3100 for 800lbs of meat if I bought the calves and fed them out.

This is an open-ended question really. The only conclusive advice I can give is don't sell by the cut. Sell whole, half or split side.

 

[Grass-Fed]

Everything in life comes down to how much time you must invest.
What is the buyer asking you to do for them? If all they want is for you to drive a steer to the butcher, then you can set an "on the hoof" price and charge a bit to drive him to the butcher. If they would like for you to drive it to the butcher and pick it up from the butcher, more time is more money. Depending on the time you are investing in this you may only charge $2/lb live waight or $25/lb if they just want the tenderloin. I buy my beef from a full service farmer, I go to his house, he give me USDA inspected, 100% Grass-fed beef for $6/lb for ground up to $23/lb for tenderloin. I have a chart somewhere that calculates price based on "live waight" vs. "hanging waight" vs. "packed waight". If you want it, I can dig it up for you.

Jason

 

[E in PA]

Call some butcher shops and ask them for their pricing. That will give you an idea.

 

[ohiobeef]

My thoughts on pricing is to try & be fair to yourself & your customer.I haul it about 10 miles to the butcher,they pay the processing & pick it up. I usually add a dime on the top live mkt.price. 1.25 would be 1.35a lb now.or about 2.25 hanging wt. I feel people charging twice this are taking advantage of people. But there are those that argue they are just getting what the customer is willing to pay. They should also ask themselves if they like paying $4.00 a gallon for gas. :tiphat:

 

[SRBeef]

Depends on how you want to sell it. Who is going to process it? do they want and have freezer space for a whole, half or quarter.

Best way to do it is to sell a whole at about $2.10/lb based on the carcass hanging weight you get from the processor. You deliver the animal to the processor. They pay you BEFORE they pick it up from the processor. They communicate with the processor on how they want it cut, trimmed and packaged. That way you are not the middle man.

$2.10 (or $2.25 in some areas as suggested above, depending on the quality of the animal, percent good beef, etc.) is a good fair price on the rail for a good, well finished beef breed steer. Regardless of who they are, how long you've known them, etc, make the deal so that you are paid BEFORE they pick up the beef from the processor. The processor should be able to give you a hanging weight the day of slaughter or shortly after by a phone call. Then get a check from your customer and let them take it from there.

This is a nice clean fair to both parties and simple way to do it. Also - put your agreement in writing, just one paragraph saying the above and price will do, and both you and they sign it before you take the animal to the processor. Agree with the processor that the beef does not move from his place until you say so (after the check clears).

This will work. Good luck.

Jim

additional point: either you or your customer negotiate with the processor to hang age the carcass for 2-3 weeks between slaughter and butcher. Processors hate to do this since it takes so much cooler space. However ask for 3 weeks, settle for 2. The animal does need good fat cover to hang for 3 weeks. Makes a big difference in meat quality.

An 1100 lb steer will usually hang at around 680 lb. x 2.10 = $1428. to your customer + the customer pays the processing and slaughter charge which can be $.50-.70/lb hanging weight (depending on how processed) + $50. for slaughter. Final yield in the box if most bone and fat trimmed away will be about 430-450 lb of beef. Takes a very good size freezer to hold that.

Make sure they understand the total cost involved up front. You end up selling a steer at around $1428/1100lb= $1.30/lb which is just a hair over current fat price to cover transport costs etc. They end up paying about $1428+$.60x680lb+$50/440lb = $4.28/lb for avg of all cuts in the freezer which is not bad compared to grocery store prices and they know where it came from and how its been fed.

Can be a good deal for both parties if all is understood and clear and written down ahead of time.

I hope this helps.

 

[gonzo]

SR that is the best I've ever heard it explained. YOU've cleared up alittle argument I've been haveing , thanks :tiphat:

 

[alohacattle]

Our ranch charges $9.00 per pound. This is based on HCW of the animal. It is very high but I remind them of the fact that they know what they are getting. I remind them of all the work I put into the animal. Now I know they could buy better meat in the store, but they don't know that so as long as they are happy I'm happy.

 

[Crazy Farmgirl]

Our ranch charges $9.00 per pound. This is based on HCW of the animal. It is very high but I remind them of the fact that they know what they are getting. I remind them of all the work I put into the animal. Now I know they could buy better meat in the store, but they don't know that so as long as they are happy I'm happy.

:shock: Wow do they get a kiss and a tube of KY to go with that!! That is outrageous! The worst part being you freely admit they could buy better in the grocery store!! :???:

I sell mine grass finished at $2.25/lb hanging weight. Buyer also pays processing fee, and is responsible for contacting the butcher to discuss hanging time and cut instructions.

 

[TexasBred]

I bought a side of beef a couple of months ago. Paid $1.95 hanging weight plus $.55 for cutting and wrapping. I'd have to go back and check the "net weight" on the ticket but figure I have around $4.00 a pound in the processed beef.

 

[chippie]

Our ranch charges $9.00 per pound. This is based on HCW of the animal. It is very high but I remind them of the fact that they know what they are getting. I remind them of all the work I put into the animal. Now I know they could buy better meat in the store, but they don't know that so as long as they are happy I'm happy.

Where do you live? Are you in Hawaii?

 

[chippie]

SR that is the best I've ever heard it explained. YOU've cleared up alittle argument I've been haveing , thanks :tiphat:

I agree. SRBeef's reply should be a sticky post so that it would be easy to find.

 

[snake67]

Our ranch charges $9.00 per pound. This is based on HCW of the animal. It is very high but I remind them of the fact that they know what they are getting. I remind them of all the work I put into the animal. Now I know they could buy better meat in the store, but they don't know that so as long as they are happy I'm happy.

:shock: Wow do they get a kiss and a tube of KY to go with that!! That is outrageous! The worst part being you freely admit they could buy better in the grocery store!! :???:

It is this attitude that keeps farmers and ranchers down. Denegrating someone who is successful indicates that person is either jealous, spitefull or perhaps a bit of both. Tsk, tsk .....

Your weak attempt at taking the higher moral ground on the basis of selling your beef cheaper actually makes many want to shake their heads in disbelief.

Far better you had asked the following:

1. Where did you find the people who were willing to pay these costs?
2. What do you do to keep these clients?
3. Is there anything special you do to market your animals?
4. What ideas would you / could you give to me so I can up my market and make a few extra dollars?

And then ask yourself:

1. How can I transfer these ideas in to my own market?

After all - buying meat is often like buying cars. Some are willing to buy old junkers and others are willing to buy the luxury model. Or like eating in a restaurant - some will eat at the fanciest joint in the county while others will only do the fast food meal.

I do not truly care what his selling price is - but it is well above average - so - there sure as he!! is nothing wrong with someone making more money in the ag game.

And how would you know the type of client? Perhaps these are all high end people who do not worry about the cost and actually have the ability to pay for the (real or perceived) quality THEY want?

If you had the opportunity to morally, legally and ethically double (or better) your financial income on YOUR farm - would you sneer at it? Or would you take it?

I think I know the answer that more than 99% of farm and ranch owners would give. Selling to the public is a profit game - not a break even or loss game. And if his client does not complain at the price then who are any of us to complain at the selling price? I think many of us would like to be able to do the same thing.

It sure helps pay down the mortgage in a hurry. And those who are in the little herd bracket generally operate at a loss at the best of times, and use their outside income to supplement their farm operation. Not very many people making more than $100 bucks a head when all is said and done - and for sure there are many (probably most) who make zero or are in the loss position at best.

Most people here would go titts up tomorrow if they had to depend upon their cattle alone to carry their operation. I for one would love to see it be the other way around and see everyone be able to make a living off cattle.

Not many people here would have the ability to start from scratch - take $1000 bucks and buy a couple animals and raise them and feed them and doctor them and actually make a profit on that $1000 bucks - in fact I would bet that most have never even done the figures to make a dollar - they just run the whole operation out of their chequing account and hope to have an animal left on the place at the end of the year.

Yet you jump on someone who might be making a buck?

Hmmm .....

Got to run.

Best to all

Merry Christmas to all

Bez

 

[backhoeboogie]

I bought a side of beef a couple of months ago. Paid $1.95 hanging weight plus $.55 for cutting and wrapping. I'd have to go back and check the "net weight" on the ticket but figure I have around $4.00 a pound in the processed beef.

$4 a pound is right at the mark for me too. You don't get that kind of quality at any supermarket. If I go to a butcher shop and pay their price for that type of quality I cannot afford much.

 

[TexasBred]

Our ranch charges $9.00 per pound. This is based on HCW of the animal. It is very high but I remind them of the fact that they know what they are getting. I remind them of all the work I put into the animal. Now I know they could buy better meat in the store, but they don't know that so as long as they are happy I'm happy.

:shock: Wow do they get a kiss and a tube of KY to go with that!! That is outrageous! The worst part being you freely admit they could buy better in the grocery store!! :???:

It is this attitude that keeps farmers and ranchers down. Denegrating someone who is successful indicates that person is either jealous, spitefull or perhaps a bit of both. Tsk, tsk .....

Your weak attempt at taking the higher moral ground on the basis of selling your beef cheaper actually makes many want to shake their heads in disbelief.

Far better you had asked the following:

1. Where did you find the people who were willing to pay these costs?
2. What do you do to keep these clients?
3. Is there anything special you do to market your animals?
4. What ideas would you / could you give to me so I can up my market and make a few extra dollars?

And then ask yourself:

1. How can I transfer these ideas in to my own market?

After all - buying meat is often like buying cars. Some are willing to buy old junkers and others are willing to buy the luxury model. Or like eating in a restaurant - some will eat at the fanciest joint in the county while others will only do the fast food meal.

I do not truly care what his selling price is - but it is well above average - so - there sure as he!! is nothing wrong with someone making more money in the ag game.

And how would you know the type of client? Perhaps these are all high end people who do not worry about the cost and actually have the ability to pay for the (real or perceived) quality THEY want?

If you had the opportunity to morally, legally and ethically double (or better) your financial income on YOUR farm - would you sneer at it? Or would you take it?

I think I know the answer that more than 99% of farm and ranch owners would give. Selling to the public is a profit game - not a break even or loss game. And if his client does not complain at the price then who are any of us to complain at the selling price? I think many of us would like to be able to do the same thing.

It sure helps pay down the mortgage in a hurry. And those who are in the little herd bracket generally operate at a loss at the best of times, and use their outside income to supplement their farm operation. Not very many people making more than $100 bucks a head when all is said and done - and for sure there are many (probably most) who make zero or are in the loss position at best.

Most people here would go titts up tomorrow if they had to depend upon their cattle alone to carry their operation. I for one would love to see it be the other way around and see everyone be able to make a living off cattle.

Not many people here would have the ability to start from scratch - take $1000 bucks and buy a couple animals and raise them and feed them and doctor them and actually make a profit on that $1000 bucks - in fact I would bet that most have never even done the figures to make a dollar - they just run the whole operation out of their chequing account and hope to have an animal left on the place at the end of the year.

Yet you jump on someone who might be making a buck?

Hmmm .....

Got to run.

Best to all

Merry Christmas to all

Bez

hmmmmm...so you'd have no trouble knowingly screwing someone as long as you tell them ahead of time that "you're screwing them"?? I'm with the Crazy Farmgirl on this one Bez. Give'em the KY before you load their beef and take their money.

 

[snake67]

Teaxas Bred wrote:

hmmmmm...so you'd have no trouble knowingly screwing someone as long as you tell them ahead of time that "you're screwing them"?? I'm with the Crazy Farmgirl on this one Bez. Give'em the KY before you load their beef and take their money.

Well, if someone offers you double the sale barn price for your steers in the field - knowing full well what they can pay for them if they go to the sale barn - will you tell them to screw off?

Or will you brag to others about how someone thought your animals were so good that they were willing to pay that high price?

I think you missed the point I was making - or perhaps we will simply have to agree to disagree

Merry Christmas to all

Bez

 

[Kathie in Thorp]

Our ranch charges $9.00 per pound. This is based on HCW of the animal. It is very high but I remind them of the fact that they know what they are getting. I remind them of all the work I put into the animal. Now I know they could buy better meat in the store, but they don't know that so as long as they are happy I'm happy.

:shock: Wow do they get a kiss and a tube of KY to go with that!! That is outrageous! The worst part being you freely admit they could buy better in the grocery store!! :???:

I sell mine grass finished at $2.25/lb hanging weight. Buyer also pays processing fee, and is responsible for contacting the butcher to discuss hanging time and cut instructions.

Alohacattle may be from Hawaii, and that may account for the $9/lb. ??

Ours, east of Seattle, was $3/lb. on the rail this fall, plus cut/wrap (50 cents/lb.) and % share of $75/kill fee.

 

[Alan]

I'm guessing aloha is from Hawaii also, last time we were there and stayed on Lanai, a smaller island, we walked though the only store, milk was $10 a gallon. Bigger islands a steak dinner was $50 to $60.

Maybe, aloha will come back an enlighten us to his/her location.

 

[TexasBred]

Teaxas Bred wrote:

hmmmmm...so you'd have no trouble knowingly screwing someone as long as you tell them ahead of time that "you're screwing them"?? I'm with the Crazy Farmgirl on this one Bez. Give'em the KY before you load their beef and take their money.

Well, if someone offers you double the sale barn price for your steers in the field - knowing full well what they can pay for them if they go to the sale barn - will you tell them to screw off?

Or will you brag to others about how someone thought your animals were so good that they were willing to pay that high price?

I think you missed the point I was making - or perhaps we will simply have to agree to disagree

Merry Christmas to all

Bez

I price my animals at what they're worth but then I'm dealing with people who also know what they're worth and get many return customers. Don't know if this guy will or not. And yes we'll agree to disagree. Merry Christmas to you as well.

 

[TexasBred]

I'm guessing aloha is from Hawaii also, last time we were there and stayed on Lanai, a smaller island, we walked though the only store, milk was $10 a gallon. Bigger islands a steak dinner was $50 to $60.

Maybe, aloha will come back an enlighten us to his/her location.

Did the store owner look over his shoulder and whisper to his associate "Now I know he could buy better milk down the street, but he don't know that so as long as he is happy I'm happy."??