How to price beef?

Backgrounding & feeding questions.
Clod Hopper
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Re: How to price beef?

Postby Clod Hopper » Mon Apr 30, 2018 5:36 am

Ok I see how you got 5.29 now I didn’t take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don’t think they were cheated. They got all their premium cuts for the same price.
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ddd75
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Re: How to price beef?

Postby ddd75 » Mon Apr 30, 2018 5:56 am

boondocks wrote:
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!



what do you sell yours at?
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ddd75
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Re: How to price beef?

Postby ddd75 » Mon Apr 30, 2018 5:57 am

Clod Hopper wrote:Ok I see how you got 5.29 now I didn’t take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don’t think they were cheated. They got all their premium cuts for the same price.

you didn't cheat anyone, that was a fair price.
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Re: How to price beef?

Postby willow bottom » Mon Apr 30, 2018 9:52 am

Clod Hopper wrote:Ok I see how you got 5.29 now I didn’t take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don’t think they were cheated. They got all their premium cuts for the same price.


After all expenses what was your profit per animal?
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Clod Hopper
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Re: How to price beef?

Postby Clod Hopper » Mon Apr 30, 2018 4:53 pm

I regret that I didn’t take better records on feed. I know that is important. I only have one lot to keep them so I had a mixture of replacement heifers and steers that were too small to sell that I was growing on up a little. I am keeping four this year and I will try to do better because I want to know for myself as well. I did buy a bulk feed trailer so cost should be a little less per ton this year.
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Son of Butch
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Re: How to price beef?

Postby Son of Butch » Mon Apr 30, 2018 5:49 pm

ddd75 wrote:
Clod Hopper wrote:Ok I see how you got 5.29 now I didn’t take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don’t think they were cheated. They got all their premium cuts for the same price.

you didn't cheat anyone, that was a fair price.

Unless the animal was USDA inspected (unlikely at only $321 for processing) It Is illegal for a producer to sell cut beef
without usda inspection.
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True Grit Farms
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Re: How to price beef?

Postby True Grit Farms » Mon Apr 30, 2018 7:58 pm

Son of Butch wrote:
ddd75 wrote:
Clod Hopper wrote:Ok I see how you got 5.29 now I didn’t take the second 60% for cut out. Thanks I am just learning. I feel like my price is fair. Yes I got a premium but I marketed cut beef not live steers. I am trying to get more than live steer price. I checked on hamburger prices and I saw $5 and more so I sure don’t think they were cheated. They got all their premium cuts for the same price.

you didn't cheat anyone, that was a fair price.

Unless the animal was USDA inspected (unlikely at only $321 for processing) It Is illegal for a producer to sell cut beef
without usda inspection.


Even if you sell it under the pretense of "not for human consumption" The all natural goat and cattle milk is sold that way at the farmers market.
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Clod Hopper
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Re: How to price beef?

Postby Clod Hopper » Mon Apr 30, 2018 8:16 pm

You are correct that it has to be usda inspected to sell individual cuts. That is why I priced it as live weight. I weigh it before it goes on the trailer and they pay me by the pound. I then haul it to the packer and they pick up their meat that they owned and pay him to wrap it. The packer I use is usda inspected and they have a store in the public area that you can purchase meat from so if I decided to sell cuts it would be no problem. I would have to ask for it to be inspected and maybe a brand name I am not sure about that because it doesn’t pertain to me now. The place is clean as a pin and they do a good job for me and my customers.
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Son of Butch
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Re: How to price beef?

Postby Son of Butch » Wed May 02, 2018 4:48 pm

hanging weight prices for slaughter cows currently paid direct to farmers by local packing plant.

premium 1.27 lb
with most 1.17 lb
overly fat 1.07 lb

p.s.
posted just to let you know what your Rock Bottom hanging weight prices should be for butcher cows.
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Re: How to price beef?

Postby jltrent » Thu May 03, 2018 6:00 am

Just me I guess, but I hate to butcher a 12-1300 pound calf for myself as there has to be a lot of fat content. I like mine around 7-800 pounds or less for myself. Even my butcher told me people will bring these fat as- calves in here to dress and it will not be near as good as the smaller grass fed calves.
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NEFarmwife
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Re: How to price beef?

Postby NEFarmwife » Thu May 03, 2018 10:24 am

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.

This is what we do but we only feed out a few for our extended family every year. We don't raise beef for others, as we've had problems with people picking it up from butcher.
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Re: How to price beef?

Postby boondocks » Thu May 03, 2018 11:46 pm

ddd75 wrote:
boondocks wrote:
True Grit Farms wrote:


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!



what do you sell yours at?


It's varied a bit given the swing in prices. Usually around $4/lb hanging wt (we pay butcher). We've gotten .25 more at times and .25 less at times. We end up giving away a good bit as well, so it evens out lol.
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Re: How to price beef?

Postby farmerjan » Fri May 04, 2018 11:11 am

I price mine roughly like this. I assume that it is 50% not 60% that the charts tell you. So a jersey steer selling for .75 / lb live = equals 1.50 / lb hanging = equals 3.00 / lb packaged meat. Then I double it. So it is costing an average of 6.00 lb for all meat they get back. Since we also sell by the "live animal" I charge twice what the average animal would bring at the stockyard. And they pay butcher costs, which runs about $150. per half, done in vacuum pack. And although there is the chart that says an animal will yield about 60% to 63% , I tell people that the hanging is about 50% of live and they will get back about 50% of the hanging. Anymore than that is a bonus and they have all been satisfied with it. This helps to keep down unrealistic returns of "oh my goodness, what am I going to do with 1000 lbs of beef" from a beef animal. And I also make sure that they know there is a different flavor from a pasture raised animal than a feed lot animal. I have always given someone who is interested in beef, a pkg of hamburger and a small steak to try. Then, go from there.
My big thing is the ones that don't have the money when it is ready and waiting at the butcher so I no longer try to market the beef. I will sell an animal, paid for when it gets on their trailer, or paid for when I deliver it to the butcher. Mostly now, I sell to people who know and understand cattle; or it goes to the stockyard and I walk out with a check that day and it is done. Tired of the bs with the public. We have a few that get some every year and that is fine. Not worth the headaches with trying to market it anymore.
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Luckiamute
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Re: How to price beef?

Postby Luckiamute » Sat May 05, 2018 12:16 am

We charged $3.90 per pound hanging weight last year when we butchered our purebred Black Angus steers. That price included everything (steer, kill fee, cut & wrap, etc.)
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ddd75
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Re: How to price beef?

Postby ddd75 » Sat May 05, 2018 6:10 am

Luckiamute wrote:We charged $3.90 per pound hanging weight last year when we butchered our purebred Black Angus steers. That price included everything (steer, kill fee, cut & wrap, etc.)


holy crap
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