selling beef directly to customer

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debh

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We have a small cow/calf operation and have been approached by several friends and acquaintances about buying a steer for beef. They want us to feed it out and then have it processed. Any ideas for a price to charge besides the feed and processing. Maybe average price at the stockyard sales, plus feed and processing? We'd like to just give them a flat amount per pound, like $2.00/lb cut and wrapped. We've always raised our own beef and now people are interested in buying direct instead of from the grocery store. I'd really appreciate some input.
 

msscamp

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The first thing I would do is check out any state regulations for this type of thing, the possible cost of complying with those regulations(if any), and possible associated fees(if any) regarding selling beef out your front gate. Then I would find out what it would cost to have that beef processed at a reputable packing plant/slaughter house. I would then add in the cost of purchasing/growing/feeding that beef out. Once I knew all of these things, I could then pencil it out and come up with a price that would cover my costs, time, and give me a little profit.
 

vs_cattle

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Im no expert in law but if your only gonna do this for a couple friends I know you will get away doing it under the table but if your planning on doing this for some extra cash like 2-5+ animals then by all means I agree with mss but I dont see why you would have to pay all those fees for the use of 1-2 animals but still look into it to see what you can do I wouldent want someone to get stuck with a large fine of some sort so go with what mss camp said and check out the law in you area
Good Luck
 

Bobg

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I sell butchered beef to a lot of people. I offer whole, halves and quarters, they buy the beef hanging on the rail and pay me for that. They then pay the guy doing the cut and wrap what his fees are. That is the only legal way I know how to do it unless you have it butchered at a USDA inspected facilities. I check what the selling price is on the USDA site for price and then add some, usually about $.40/pound. I've been getting $1.80 hanging weight and the pay $.40 cut/wrap.

Bobg
 

mhill

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We sell for $2.00 lb hanging weight. Buyer pays .30 lb additional for cut , wrapped and frozen at processor. Some guys are getting $2.25 for their hanging weight. If you can get it why not take it.
 

Susie David

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Alot of posts in the past on this subject.

We sell "shares" in live animals and broker the processing for our customers. This method by-passes the inspection requirement because the folks are in essance slaughtering their own animal
We charge $2.15 per pound hanging and the customer pays cut & wrap and a share of the slaughter. This is for on farm slaughter using a WA State Inspected Slaughter Operator.

We also sell USDA inspected beef by the cut...ground beef sells for $4.50 per pound and Porterhouse fetches $13.50.
We put together a "split half" package which is 120# of cuts from the north and south ends of the steer and get $450.00
for this paskage.

Customer education is critical to success....the folks need to know that there is just so many cuts on a animal i.e. the steer only has eight Porterhouse and that there will be approxmately 50% ground beef and the type of cuts will effect the percentage of fat in the ground beef. We always cut short ribs to reduce the fat and I like them anyway.

Calaulate your investiment in the animals, don't skip over the little things like fuel and labor. I see folks practically giving beef away...I suppose it is allright to be nice to your family and friends but we're in the business of selling beef and every penny spent on the animal needs to come home and bring a nickle with him. We start the account at conception and end it when the meat packages are delivered.

And that's my two bits worth...asked for or not!
Dave Mc
 

MrBilly

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We also sell shares and broker the processing. We charge $1.62/lb live wt which translates to $2.70/lb hanging wt on average. Processing is $60 kill, plus 0.45/lb hang wt. This still makes our beef about $0.60/lb of boneless retail product less than that at the grocery store currently.

One needs to make a profit or all the work is wasted. When we set a price at signup , we gurarantee that price at delivery. There must be a cushion. Like last year we experienced a 51% increase in corn, 26% increase in fuel, etc, but the price quoated one year earlier was honored, and was high enough to absorb this without causing us a loss. Be careful, add in all the costs before you set a price. People are willing to pay for source verified products, they will pay a lot more than at a superstore. Set your sites high to start, it will be very hard to make a major incrase later.

Visit our website http://www.sellfarm.com

This topic has been covered in detail on this site. Do a search of the site for more detail.

Billy
 

Bobg

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Susie David":h1fmkmhk said:
This is for on farm slaughter using a WA State Inspected Slaughter Operator.

Dave,

Who is the operator you use that is state inspected? We're selling more and more beef and would like to look into being able to sell packaged beef.

Thanks,
Bobg
 

travlnusa

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We sell halves at $3.00 hanging weight, with buyer paying all processing.

We are currently going thru the hoops to get USDA inspected to sell, not process, cuts. Our plan is to then sell "bundled packages". That way we can sell at a higher price per lb.

The biggest problem I see with selling direct is people selling way to low. If you are going to sell cheap, sell them them at local barn and avoid the headaches. Your product, time, service all have value. Earn what you are worth.
 

hayray

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Break even cost is going to be close to $3.00/ lb. for selling cut and packaged beef. I sell it by the cut weight and I have it figured out right now to be around $2.90/lb. for just breaking even, so if the standard in retail is that you need to make a 30% profit so add that on. If you are selling beef by the cut weight you then have a lot more work to do so you then start incurring some of the cost of a meat distributor, like transportantion, on farm freezers, delivery, and taking orders for the processor, so you should charge more than a custom exempt order purchased by the hanging weight.

Yield of meat will be approximatley 40% of the live weight on a nicely finished steer, fat heifers it can be a lot lower. Also, you will get more cutting loss from orders for boneless cut sides.
 

dieselbeef

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As of 4/09/07



We also sell half beeves. If you are interested in bulk, please let me know, I have a couple of halves available at the butcher. This inventory will be going up again in a few weeks, as I am getting another steer butchered. But then this will be the last of it until next year!!
Here is the price list and my inventory as of right now.



Price list and availability on hand:

Ground Beef- $7.00/lb

Short Ribs - $ 5.50/lb 8 pkgs

Roasts Brisket- 1 pkg Rump- 2 pkgs

Sirloin tip- 3 pkgs

Chuck- 5 pkgs

Eye of round-2 pkgs

Bottom round- 2 pkgs

NEW!! London Broil-3 pkgs (shoulders w/o bone)

Cubed steaks- $7.00/lb 6 pkgs

Brisket stew meat- 4 pkgs

Soup & Neck Bones $ 3.00/lb 4 pkgs & 1 pkg

Liver $7.00/lb OUT

Dog Bones- $2.00/lb 2 bags

Steaks -Sirloin $10.00/lb 7 pkgs

T-Bones $ 17.00/lb 4 pkgs

Porterhouse $ 17.00/lb 1 pkg

Rib eyes- $19.00/lb 4 pkgs

New!! Skirt Steak-$8.00/lb 1 pkg

New!! Flank Steak-$8.00/lb 1 pkg


just some local stuff goin on here...what do ya'll think of this? i was shocked at the prices thyere selling for but thyey sell it all...always. lots of it o the higher end consumer but its all word of mouth as they dont advertise except for by e mails privately. very picky on genetics too
 

dieselbeef

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as far as i know they pick it up at his farm im have then name of his butcher somewhere too. ill be talkingto him bout cuttin some of mine to see how it works out.
he must be a liscenced retailer cuz he moves a few a year..maybe 20 im guessin. maybe less
 

ROCK-N-W

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Diesel,
You gota be kidding me. Any fool that would pay those prices for beef just fell off the Turnip truck ... That's outrageous pricing, cause even show beef don't taste no bettern than your old basic angus if it's fed out proper. GEEZ A WHIZ BRO
Maybe they are smoking some of that grass their feeding the cows! I know your'e just seeing those $$$ signs dancing around your head.
 

dieselbeef

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ching ching...honestly i dont know how they can sell it. grass finished yet. not organic i dont think. either way...we could all be rich at that scale.

obviously found his market!
 
OP
D

debh

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thanks for all the information and advise. we'll do some figuring and come up with a price for this time. We'll then decide if this can be profitable in the future. I also don't like the idea of "doing this for friends and family just because". This is what we would like to do instead of the cow/calf operation and then to sales yard. BUT, we also don't want to be taken advantage of.
 

dieselbeef

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that was my thought too. but the people hes sellin too have the money i guess. mostly sells to the upper kinda people who are in to the whole organic/wholesome crap thing cuz its the latest thing to be cool.

more power to em i wish i was gettin that kinda cash from my cattle
 

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