Price, live weight - finished beef

[Dave]

As I said I sold a bunch of steers in the fall of 1969 for $0.73 a pound hanging. At that time gas was $0.25 a gallon. You could buy a new pickup for $3,000. A 50 HP tractor new was around $5,000. So by comparison what should beef be worth? Compared to the price of fuel, beef should be around $7.00 hanging. It is not that someone is charging too much. We (me included) aren't charging enough.

 

[Jeanne - Simme Valley]

And my calculations above at $8.55/lb does not include the kill, cut, wrap & freeze price.
I was just wondering if you have gone over this information with your new potential buyers.

 

[JMJ Farms]

So, that's $4550 for 532# of meat = $8.55/lb
Out of that 532#, there will be ? about ? 120# of meat that can be made into good steaks. The other 412# also costs $8.55/lb.

Hamburger meat in grocery store here was $9/lb 2 weeks ago. Not sure what it is now.

 

[Jeanne - Simme Valley]

Maybe the beef industry will make money this year!

 

[JMJ Farms]

Maybe the beef industry will make money this year!

Part of the industry will. But unfortunately I'm not in the right part :lol2:

 

[ksmit454]

And my calculations above at $8.55/lb does not include the kill, cut, wrap & freeze price.
I was just wondering if you have gone over this information with your new potential buyers.

Yes this buyer actually offered to pay the price per lb live weight. I let the customer offer to see what he was thinking as this is my first beef I've sold.

 

[ksmit454]

You have explained to them that their carcass will weigh 62% of their live weight, and they will get about 2/3 of that weight to put in their freezer??
So, if he gains 100#/mo, he will weigh 1300# X $3.50 = $4550 x 62% dressing weight = 806# less 1/3 = 532# for the freezer.
So, that's $4550 for 532# of meat = $8.55/lb
Out of that 532#, there will be ? about ? 120# of meat that can be made into good steaks. The other 412# also costs $8.55/lb.
https://www.google.com/search?q=beef+cutout+sheet&rlz=1C1JPGB_enUS786US786&tbm=isch&source=iu&ictx=1&fir=bXtj-6UoTNLmeM%252ChYUN6Z2vY613bM%252C_&vet=1&usg=AI4_-kR4-8cSKX9eb-FGpAXKPT-FJCVRMw&sa=X&ved=2ahUKEwjcy8u8-6fqAhXwgnIEHdckAF4Q9QEwDnoECAoQLA&biw=1536&bih=755#imgrc=7JLmPA9JbBZo8M&imgdii=_3PPEyehUBlG2M

If they understand that and are happy at that price, go for it.
Price of carcasses currently by USDA for choice is $1.72 - So, your steer is worth about $1400 on the current market. Like I said, if they know what they are getting and are willing to pay, great for you. Of course, you are in California.

Yes I agree with you there on the location... especially where we live, you wouldn't believe the price that people pay for meat. We are in the foothill area of Ca so we get a lot of city and Bay Area people that are just willing to pay the price.

 

[ksmit454]

So, that's $4550 for 532# of meat = $8.55/lb
Out of that 532#, there will be ? about ? 120# of meat that can be made into good steaks. The other 412# also costs $8.55/lb.

Hamburger meat in grocery store here was $9/lb 2 weeks ago. Not sure what it is now.

That was my thought too, beef in the store is spendy!!

 

[ksmit454]

As I said I sold a bunch of steers in the fall of 1969 for $0.73 a pound hanging. At that time gas was $0.25 a gallon. You could buy a new pickup for $3,000. A 50 HP tractor new was around $5,000. So by comparison what should beef be worth? Compared to the price of fuel, beef should be around $7.00 hanging. It is not that someone is charging too much. We (me included) aren't charging enough.

And yes, I couldn't agree with you more there!

 

[sstterry]

I have one customer that offered $3.50/lb live weight.

Where are you located? I may want to move!

 

[ksmit454]

I have one customer that offered $3.50/lb live weight.

Where are you located? I may want to move!

No you don't, California is a joke! If my family wasn't here I would be either.

 

[Dave]

I have one customer that offered $3.50/lb live weight.

Where are you located? I may want to move!

You could be like the Beverly Hillbillies. Pack up your bags.

A lot of years ago I came out of a logging camp in Alaska. After 6 months of hard work in the middle of no where I decided that the thing to do was go to California and chase them California girls around the beach. I lasted a week. I decided that this wasn't where I belonged.

 

[Named'em Tamed'em]

We sell for $3/lb hanging wt,buyer pays cut and wrap and slaughter.

 

[kenny thomas]

As I said I sold a bunch of steers in the fall of 1969 for $0.73 a pound hanging. At that time gas was $0.25 a gallon. You could buy a new pickup for $3,000. A 50 HP tractor new was around $5,000. So by comparison what should beef be worth? Compared to the price of fuel, beef should be around $7.00 hanging. It is not that someone is charging too much. We (me included) aren't charging enough.

Dave said it all in his post. We have no control over the price we get for most of our beef. I'm proud someone can get more for theirs and have people willing to give it.

 

[Stocker Steve]

I just checked CL. Beef prices are all over the map. I think the key for repeat buyers is to have a good "farm story".

So worry less about the price and more about the story. Price people will end up buying cheap ground up lips from someone else, and that is OK.

 

[ksmit454]

We sell for $3/lb hanging wt,buyer pays cut and wrap and slaughter.

Thanks!! I spoke to a woman in my area that charges around the price too.

 

[Hereford2]

I say GOOD FOR YOU!!! I always like seeing people figuring out ways to get involved with cattle and agriculture in general.

 

[ksmit454]

We sell for $3/lb hanging wt,buyer pays cut and wrap and slaughter.

This seems to be the consensus. Thanks so much for the response!

 

[ksmit454]

I say GOOD FOR YOU!!! I always like seeing people figuring out ways to get involved with cattle and agriculture in general.

Thanks so much for the encouragement! I bought my very first Angus steers in October of 2019 and now am up to 8 head total. It has been such a great learning experience.

 

[farmerjan]

So very glad that you are doing it and learning and making some money. We are getting 2.75 to 3.00 lb hanging weight here so you are not so far out of line. Buyer pays processing and I explain that it is going to cost them in the neighborhood of $150 to $200 to have it processed. I tell people that have no real clue, in very simple terms; like this. A 1000 lb live weight animal will hang at about half and you will get about half that in ACTUAL EDIBLE MEAT. I also go on to explain that usually it is more like 60% hanging, and about 60% of that is actual meat. But if you figure that you get back about a QUARTER of the live weight, then you can get a BASIC idea of the cost. I also tell them that average weight of an angus is 1200 lbs....we have smaller framed animals and usually kill heifers that come up open.... or are shorter so wouldn't bring as well at the sale....I also explain that you are not going to get all steaks and that there is more hamburger than you expect, from all the different cuts that have "scraps" left that get ground up. And at the price of hamburger in the stores, $6-8.00 lb for finished beef is not so bad. So they are getting some pretty nice steaks for "hamburger" prices now.....
Also, many of mine are jersey crosses, and they will finish smaller because they just don't have the frame and they do better on grass.... I mostly sell them as grass fed with very little grain feeding....a 1,000 jersey is pretty good sized, and a jer/angus cross will finish out quicker than a straight jersey, at a younger age.