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Direct Market Beef Rates?

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Ben H

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Gorham, ME
What is the going rate for direct-market freezer beef where I would drop the animal off at the butcher shop and customer would pick it up paying processing fees to the shop and paying me per pound of carcass weight?
 
Rates vary, but most are based off what fats are selling for.

If you sold the animal on the rail it would bring about $1.33 carcass weight in an 80 cent live market.

Selling an entire animal is not much hassle, but can get expensive for the customer. A 700 pound carcass at the $1.33 and 40-60 cents for processing is between $1200 and $1350 roughly. The expense isn't so much the per pound, but the total cost. Many people are on the payment plan and can't front a grand for a beef.

I get a premium for my beef, I charge about 25 cents more than the rail price for the source verified aspect and no implants or medications. I cover all the killing and processing costs and they are added to the final price. Right now I am at $2.35/lb (Canadian based on a rail of $1.46 Canadian) carcass weight no added costs to the buyer.

Make sure your customer knows they get back less weight than they pay for. Many don't know cutting losses and such.
 
We've sold a fair number previously, I just want to get an idea what others are charging around the country. We don't use any routine antibiotics or implants, it's "Natural"
 
We buy a half at a time and we pay $1.40 hanging, plus we have to
pay half the killing fee, $20; AND the processing which is 40 cents lb.
Yeah, it is expensive. It is also very good and guaranteed. We have
bought from this particular place for a very long time.

There is just the two of us so can't really use a whole beef at
at time.
 
I have been charging $1.50 on the rail.......I figured last year that was the higher end of the grid premiums and a better deal than anything that got a select discount. I wanted a price I could maintain ifm the market drops, so I didn't want to go too far ahead. Wel, come to find out most guys around here are getting $1.65-1.75. But they are only selling 2-4 head a year, I am trying to move 40-50...


PPRM
 
I charge 2.00 lb hanging weight and .34 cents a pound for processing. I find that once you get a customer hooked on your beef I rarely here complaints about the price, in fact most want the larger carcases,(800-900).

Tom
 
I like them to dress about 800-850 pounds...So mine would be bigger. I have the forage to do it though,

PPRM
 
A good recomendation from Mike Lorentz of Lorentz Meats in Minnesota was to not just sell by the 1/4 and 1/2 but also by the 12th and 20th. Divide it up yourself and it will open the market to people who don't want to front the money for a full side.
 

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