How to price beef?

Backgrounding & feeding questions.
User avatar
Ky hills
GURU
GURU
Posts: 1602
Joined: Thu Feb 04, 2016 6:54 pm
Location: Clark County, KY

How to price beef?

Postby Ky hills » Fri Apr 27, 2018 9:41 pm

We are fattening a steer and have friends interested in buying half. The processor we used before is a USDA inspected facility, and we were pleased with the overall job they did, but were disappointed with a few details. I was expecting to have a live weight recorded, as well as the end product, but they only had a end product weight, and we did not get liver, something about it may have had blemishes. Anyways I am wondering how y'all would price the meat? So much per pound of meat ( somewhere a little above ground beef and below steak and roast price ) + 1/2 processing fee?
0 x

ddd75
GURU
GURU
Posts: 2035
Joined: Thu Feb 19, 2015 10:47 am
Location: KY

Re: How to price beef?

Postby ddd75 » Sat Apr 28, 2018 5:42 am

you can have the butcher split it for you. if you want the liver and extras it costs extra. you have to tell them.

pricing would be somewhere around the 2.25 / lb mark + / - plus processing.
0 x

User avatar
mwj
GURU
GURU
Posts: 1094
Joined: Sat Jul 10, 2004 6:36 am
Location: central Ill.

Re: How to price beef?

Postby mwj » Sat Apr 28, 2018 8:41 am

Ky hills wrote:We are fattening a steer and have friends interested in buying half. The processor we used before is a USDA inspected facility, and we were pleased with the overall job they did, but were disappointed with a few details. I was expecting to have a live weight recorded, as well as the end product, but they only had a end product weight, and we did not get liver, something about it may have had blemishes. Anyways I am wondering how y'all would price the meat? So much per pound of meat ( somewhere a little above ground beef and below steak and roast price ) + 1/2 processing fee?


My locker will not wrap the liver, heart or tongue unless you request it. He said less than 10% of customers would take them when they picked up there meat, and was wasted labor and and packaging for the locker.
0 x
never underestimate the power of stupid people in large groups!!!!!!!

Farm Fence Solutions
GURU
GURU
Posts: 1829
Joined: Thu Dec 15, 2016 3:22 pm

Re: How to price beef?

Postby Farm Fence Solutions » Sat Apr 28, 2018 12:38 pm

We charge based on live weight, and let the customer handle the butcher bill. 15-20 cents over market seems more than fair from my perspective. Butcher beef is more work than sending 40 fats somewhere on contract.
1 x
"Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

Clod Hopper
Cowhand
Cowhand
Posts: 71
Joined: Sun Jul 05, 2015 10:49 am
Location: Central Kentucky

Re: How to price beef?

Postby Clod Hopper » Sat Apr 28, 2018 8:10 pm

Don’t sell it too cheap I sold 5 halves and three of my customers have already committed to next year and I feel like the other two will as well. Both said it was great. I sold mine for $1.60 live weight.
0 x

circlebllc
Cowhand
Cowhand
Posts: 106
Joined: Sat Mar 26, 2011 8:30 pm
Location: Central Missouri

Re: How to price beef?

Postby circlebllc » Sat Apr 28, 2018 9:58 pm

On the day of butcher delivery, I look at the daily average price. USDA dressed, hanging weight. My closest is in Iowa. Seems fair to my customers and me. I screen shot the daily and figure up the bill. Customer pays the butcher bill.
1 x
Stand to the left or the right. Never on the fence.

boondocks
GURU
GURU
Posts: 2460
Joined: Thu May 09, 2013 2:22 pm
Location: Upstate NY

Re: How to price beef?

Postby boondocks » Sat Apr 28, 2018 10:18 pm

Wow, I'm glad I don't y'all in my backyard selling home-raised nice beef for 2.25 finished and 1.60 hanging wt. If you can make money selling it at that, more power to ya I guess....

OP, keep in mind that it's hard to raise prices later on repeat customers, so set a price you can live with (or near) 5 yrs from now.
0 x

Clod Hopper
Cowhand
Cowhand
Posts: 71
Joined: Sun Jul 05, 2015 10:49 am
Location: Central Kentucky

Re: How to price beef?

Postby Clod Hopper » Sun Apr 29, 2018 7:00 am

I want to make as much as I can but still be reasonable. My steers were 1250 lbs average February 17. Do you think $1.60 live weight was too cheap?
0 x

User avatar
True Grit Farms
GURU
GURU
Posts: 7430
Joined: Mon Jan 04, 2016 5:29 pm
Location: Middle Georgia

Re: How to price beef?

Postby True Grit Farms » Sun Apr 29, 2018 8:38 am

Clod Hopper wrote:I want to make as much as I can but still be reasonable. My steers were 1250 lbs average February 17. Do you think $1.60 live weight was too cheap?


Quick figure is with you charging $1.60 lb the customer has $5.71 in a pound of beef plus the processing fee. I've never made a practice out of eating freezer beef so I have no idea how beef taste after being stored and frozen for a year. I do know that eating frozen seafood isn't nearly as good as eating fresh seafood.
0 x
If we'd of know this we'd of picked our own cotton.

User avatar
Son of Butch
GURU
GURU
Posts: 5124
Joined: Mon Aug 30, 2010 6:44 pm
Location: Frost Bite Falls, Minnesota

Re: How to price beef?

Postby Son of Butch » Sun Apr 29, 2018 1:13 pm

circlebllc wrote:On the day of butcher delivery, I look at the daily average price. USDA dressed, hanging weight. My closest is in Iowa. Seems fair to my customers and me. I screen shot the daily and figure up the bill. Customer pays the butcher bill.

+1
A smart way of doing it.
0 x

Clod Hopper
Cowhand
Cowhand
Posts: 71
Joined: Sun Jul 05, 2015 10:49 am
Location: Central Kentucky

Re: How to price beef?

Postby Clod Hopper » Sun Apr 29, 2018 7:51 pm

I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.
0 x

User avatar
True Grit Farms
GURU
GURU
Posts: 7430
Joined: Mon Jan 04, 2016 5:29 pm
Location: Middle Georgia

Re: How to price beef?

Postby True Grit Farms » Sun Apr 29, 2018 8:33 pm

[quote="Clod Hopper"]I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.[/quote
One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight, 714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.
0 x
If we'd of know this we'd of picked our own cotton.

User avatar
Son of Butch
GURU
GURU
Posts: 5124
Joined: Mon Aug 30, 2010 6:44 pm
Location: Frost Bite Falls, Minnesota

Re: How to price beef?

Postby Son of Butch » Sun Apr 29, 2018 9:39 pm

Clod Hopper wrote:I want to make as much as I can but still be reasonable.
My steers were 1250 lbs average February 17. Do you think $1.60 live weight was too cheap?

Extreme top here last week was 1.24 with most at 1.20 - 1.22
1250 x 1.24 = 1550 - $25 sale/fees = $1525
1250 x 1.60 = $2000
You received a $475 premium over extreme top for whatever special services you think you provide and wonder if
you sold too cheap?
LOL
Yes much too cheap, you should have gotten at least $3,000 head based on your good looks alone!
0 x

User avatar
Son of Butch
GURU
GURU
Posts: 5124
Joined: Mon Aug 30, 2010 6:44 pm
Location: Frost Bite Falls, Minnesota

Re: How to price beef?

Postby Son of Butch » Sun Apr 29, 2018 10:26 pm

True Grit Farms wrote:
Clod Hopper wrote:I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702.
That works out to $2.71 plus $320.80 processing. Vacuum sealed.

One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight
714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.


1190 live weight x 59% = 702 x .60 = 421 lbs take home
1190 x 1.60 = $1904 + 320.80 processing = $2,225 divided by 421 = $5.29 lb take home

$321 processing was cheap, our butcher charges $469 to slaughter/cut/grind/process/wrap 700 lbs hanging weight.
Steer hanging 59% of live weight = almost finished, but could have used another 3-4 weeks on feed.
1 x

boondocks
GURU
GURU
Posts: 2460
Joined: Thu May 09, 2013 2:22 pm
Location: Upstate NY

Re: How to price beef?

Postby boondocks » Sun Apr 29, 2018 11:48 pm

True Grit Farms wrote:
Clod Hopper wrote:I pulled the ticket on my beef and it weighted 1190 live weight. The yield was 702. That works out to $2.71 plus $320.80 processing. Vacuum sealed.[/quote
One of us is missing something. Live weight is 1190 x .60 = 714 hanging weight, 714 hanging weight x .60 = 420 lbs meat to the customer.
I think your price was more than fair myself, I was pointing the cost of beef to the consumer out for Boondocks.


Sorry, TG and Clod, I was reading too fast and read live wt as hanging wt.
Living in a climate where we feed hay over half the year, and having a grass-fed herd (no grain), I have to try to get every nickel, and I don't try to compete with Wal-Mart meat. I will give away a quarter to a deserving cause or person (and have) before I'll try to go tow-to-toe on price with beef raised and processed in a mass-market grain-fed system. Maybe part of that is foolish pride!
1 x


Return to “Feedyard Board”

Who is online

Users browsing this forum: No registered users and 2 guests