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Freezer Beef Price

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High Plains

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A buddy of mine purchased a freezer beef from a local rancher. Animal was fed conventionally in a feedlot and harvested at the local locker. He told me the fellow charged him $2.55/lb. carcass weight for the critter and $85/lb. for processing for a grand total of $3.40/lb. packaged price. Anybody know if this is a good or bad price? The USDA Choice boxed beef price is $1.98/lb. I realize that's before any retail mark-up. Not sure I can figure out how this equates.
 
Do you know what the carcuss weight was? $3.50 a pound of cut and wrapped meat is pretty good here. Ours average about $4 a pound of meat in the freezer
 
I believe he said it was a 1,000 lb. live weight so that ought to be about 630 lb. carcass, or so. Smaller critter for sure, but I know the guy keeps back his non-gainers for freezer beef while the big, fast-growers go to the packer.
 
We have been getting $2.25/pound hanging. Its going up to $2.40 on this round. My carcasses have been averaging between 6 and 700. That size seems to fit the city folk better. Processing is $.46/pound, plus a $25 kill fee. We split the kill fee if someone buys a quarter.
 
High Plains said:
I believe he said it was a 1,000 lb. live weight so that ought to be about 630 lb. carcass, or so. Smaller critter for sure, but I know the guy keeps back his non-gainers for freezer beef while the big, fast-growers go to the packer.
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Our calves average 1250 live weight and about 675-700 pound carcass weight. We have asked for $1500 a whole beef, $800 a half and $450 a quarter. They pay their own processing fees. Sold 33 head this year.
 
We AI our replacement heifers and don't run any clean-up bulls. We sell the ones that don't stick as butcher beef. We charge $3.25 a pound hanging weight. That price includes us scheduling at the butcher plant, taking them in, and delivering them to the customer's freezer when done. We pay all the processing fees unless they want something special done like hamburger patties,jerky, etc.. Most people don't say anything about the price, they want the complete service! Plus we have our heifer calving done in about 10 days the next Spring!
 
How do those prices equate with what you would get selling the critter in your local market?

Do your customers have problems with taking ALL the cuts? No real experience with selling 'locally', but seems like it might be a problem as many people don't want the hassle of cooking short ribs, for instance. And families who won't eat liver.

mrj
 
I have been selling mine for $2.5 hanging wt. I have seen some going for $4.00. for total grass fed/organic. Proceesing fee is .65/lb and kill fee of $45.00 I just cut up an older cow that lost calf in to hamburger and sold it for $3.25/ pound. Sold it all.
 
I sell a few, usually yearling bulls that dont semen test or freemartins, for 2.10 hanging wt. plus processing ( about .50). For a 1300 lb. bull hanging 60% that gives me about 1600.00 (about 1.25 live wt.) Some around here are at 2.25 for steers. If I were feeding good steers I wouldnt have a problem asking 2.50, My butcher is good and has no problem custom cutting how you want it. Nice way to add value to odds and ends critters but I'd just as soon not have to mess with it.
 
I paid 1.95 for a 1/2 in march hanging plus processing which was 51 cents per lb.
 
High Plains said:
A buddy of mine purchased a freezer beef from a local rancher. Animal was fed conventionally in a feedlot and harvested at the local locker. He told me the fellow charged him $2.55/lb. carcass weight for the critter and $85/lb. for processing for a grand total of $3.40/lb. packaged price. Anybody know if this is a good or bad price? The USDA Choice boxed beef price is $1.98/lb. I realize that's before any retail mark-up. Not sure I can figure out how this equates.
Click to expand...

" He told me the fellow charged him $2.55/lb. carcass weight for the critter and $85/lb. for processing for a grand total of $3.40/lb. packaged price. "

I'm surprised nobody has commented on the above---if the customer weighed the 'packaged' meat, he would of found out that it cost him over 3.40 per pound---because the 'packaged' is less weight than hanging--due to trim loss, bones, etc---I found out the hard way yrs ago that it's best to explain everything up front and not assume that anybody knows anything---
 
littlejoe said:
High Plains said:
A buddy of mine purchased a freezer beef from a local rancher. Animal was fed conventionally in a feedlot and harvested at the local locker. He told me the fellow charged him $2.55/lb. carcass weight for the critter and $85/lb. for processing for a grand total of $3.40/lb. packaged price. Anybody know if this is a good or bad price? The USDA Choice boxed beef price is $1.98/lb. I realize that's before any retail mark-up. Not sure I can figure out how this equates.
Click to expand...

" He told me the fellow charged him $2.55/lb. carcass weight for the critter and $85/lb. for processing for a grand total of $3.40/lb. packaged price. "

I'm surprised nobody has commented on the above---if the customer weighed the 'packaged' meat, he would of found out that it cost him over 3.40 per pound---because the 'packaged' is less weight than hanging--due to trim loss, bones, etc---I found out the hard way yrs ago that it's best to explain everything up front and not assume that anybody knows anything---
Click to expand...

I was actually going to mention that earlier. My FIL had a hard time understanding this. I generally tell people now that they should figure on 60% of the hanging weight ending up in the box, then there are no big surprises.
I would far sooner not deal with the private deals anymore. Not that I don't think there is a dollar in it, I just like to keep things simple and selling beef can turn into a complicated business.
 
My sister-in-law is here and she said they pay $4.00 for the packaged meat
and it is delivered to her. That is on a half beef, cut, wrapped and frozen.
Ready to put in her freezer and that is in Wyoming. They always buy their
meat from the same rancher. He takes care of it--hauling in to be killed
and processed; then they deliver the packages and she pays for it.
 
Been awhile....

I charge $3.25/Lb Including Kill and Cut and Wrap. Kill and Cut/wrap equate to around 65 cents a pound depending on Calf wt...

mrj, that is the trick to all of this. Using up trim into sausage products i can sell under USDA label is a true leverage on making this work. Diversity in customer base is something you have to build in as well.

It isn't easy for certain. But I certainly enjoy it!
 
been selling our grass fed steers for a number of years now & it`s working out to $3.75 ib plus cutting/ wrapping. We absorb the kill fee.
It`s pretty important to inform customers about the on the rail weight vs carcass weight.... that can be a big surprise to our city customers!
Tried selling sides but most folks don`t own a big enough freezer so a few years ago we started selling mixed quarters. It`s a lot more work but it` s working.
 

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