Premium Spot Prices for Organic Beef Cuts
Raising livestock for direct-to-consumer meat sales requires careful record keeping and analysis to determine profitable pricing.
It doesn't thing if y'all are selling halves, quarters or single cuts, you demand to know your toll of product first. What are your costs of raising that animal from twenty-four hours one until the day of slaughter? In any business endeavor, keeping good records is essential to knowing if you lot are going to exist profitable or not. In one case you know your cost of production, in that location are some tools you lot can use to help you determine what cost you may want to attach to your fine, subcontract-fresh product.
Mike Debach of the Leona Meat Plant in Troy, Pennsylvania, has a nifty procedure yous can utilize that will help you lot figure out your costs after processing then you can determine your retail price. For this instance, sympathise that the cost of production will vary depending on the breed of the creature and production methods (i.e., grain-fed, grass-fed). According to Dr. John Comerford, retired Penn Land kinesthesia, the per centum used to make up one's mind the "carcass weight" varies depending on what kind of animal it is (beef, hog, lamb), what breed the animal is, and the method of production. So, for this case, allow's say we have a grass-fed, Angus steer that dresses out to a hanging carcass weight that is 58 per centum of its live weight and your cost to get that animal to slaughter weight is $1.35 per pound of live weight.
Determining the cost of your creature
- Starting time with your per pound price of the live animal (as mentioned before, your cost to heighten that animal).
- Split this amount by 58% to go your "hanging cost." (That animate being is now a "carcass" after it is slaughtered. This determines your new toll per pound at "carcass weight.")
- Add in your processing fees, trucking, etc., to the "hanging toll."
- Divide the total by 65% to get your "cut-out" cost (breaking the carcass downwards into individual cuts of meat).
- Divide your cutting-out toll by the percentage marker-up you want to reach the "retail value" price you lot volition ultimately charge.
Example
- Cost of the live animal = $ane.35 per pound
- $one.35 divided past 58% = $two.33
- $2.33 plus $0.65 (per pound processing fee) = $2.98
- $2.98 divided past 65% = $iv.58
- This is the final cost of your animal becoming single cuts of meat
$4.58 divided past 75% = $6.eleven
A sale price of $6.11 per pound would give you lot a 25% return on your product.
As you tin can encounter, in every stride of the process there is a reduction to your terminal yield of finished product. So, your cost per pound volition become upward with every step from live animal to cut and packaged product. The above example volition give you a rough estimate which can aid you lot to remain profitable. Keep in mind, information technology is a "rough" guess. A lot of variables can change these percentages. For case, how much fat was on the creature? What kind of cuts are you requesting? Are you getting bone-in or boneless cuts? If you lot want boneless cuts, this will reduce the total pounds of product returned to you from your butcher.
What kind of fauna you are processing will as well make a difference in the percentage of product you lot ultimately receive. Dr. Christopher Raines, quondam Fauna Science professor, has a handy sheet that describes the average per centum of yield in the butchering process for pork, beef and lamb.
Dr. Raines' document says when converting an animal into a carcass, the average percent of yield for pork is around lxx pct, beef 60 pct and lamb 50 pct. Turning that carcass into individual cuts of meat; the boilerplate yield for os-in cuts is 75-lxxx percent of carcass weight for pork, 65-70 per centum for beefiness, and 70-75 percentage for lamb. Dr. Raines points out that crumbling and further processing can decrease your final product weight. If your butcher is hanging (crumbling) the carcass for 2 weeks, there is moisture loss due to evaporation. If you are curing hams and bacons from your pig, applying a estrus process to your meat cuts may also reduce your concluding yield.
Using these tools, y'all should be able to make a rough guess on the amount of product yous will accept for auction, what your costs are, and what you will need to charge your customers to remain profitable.
Source: https://extension.psu.edu/how-much-should-you-charge-pricing-your-meat-cuts
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