How to Sell Farm Raised Grass Fed Beef Using Custom Exempt Butcher
Raising livestock for direct-to-consumer meat sales requires careful record keeping and analysis to determine profitable pricing.
It doesn't matter if yous are selling halves, quarters or unmarried cuts, you need to know your cost of production first. What are your costs of raising that animal from day 1 until the 24-hour interval of slaughter? In any concern endeavor, keeping skilful records is essential to knowing if yous are going to exist assisting or non. One time you lot know your cost of product, there are some tools yous tin can utilize to help yous determine what price you may want to attach to your fine, farm-fresh production.
Mike Debach of the Leona Meat Plant in Troy, Pennsylvania, has a peachy process you lot tin can apply that volition help yous figure out your costs after processing so you can decide your retail price. For this example, sympathize that the price of production will vary depending on the brood of the animal and production methods (i.due east., grain-fed, grass-fed). According to Dr. John Comerford, retired Penn State faculty, the percentage used to decide the "carcass weight" varies depending on what kind of animal it is (beefiness, hog, lamb), what breed the animal is, and the method of production. And so, for this example, let'due south say nosotros have a grass-fed, Angus steer that dresses out to a hanging carcass weight that is 58 percentage of its live weight and your cost to get that animal to slaughter weight is $i.35 per pound of live weight.
Determining the cost of your creature
- Start with your per pound cost of the alive creature (equally mentioned before, your cost to raise that fauna).
- Split up this corporeality by 58% to get your "hanging cost." (That animal is now a "carcass" after it is slaughtered. This determines your new cost per pound at "carcass weight.")
- Add in your processing fees, trucking, etc., to the "hanging price."
- Divide the total by 65% to go your "cut-out" toll (breaking the carcass downwardly into private cuts of meat).
- Dissever your cut-out cost by the percentage mark-upwardly you desire to reach the "retail value" cost you lot will ultimately charge.
Case
- Cost of the live animal = $1.35 per pound
- $1.35 divided by 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 condign single cuts of meat
$four.58 divided past 75% = $6.xi
A auction cost of $6.11 per pound would give y'all a 25% render on your product.
As you can see, in every step of the procedure there is a reduction to your final yield of finished product. So, your cost per pound volition go up with every step from live animal to cut and packaged product. The above case will requite you a crude estimate which can help you to remain assisting. Continue in heed, it is a "rough" estimate. A lot of variables can change these percentages. For case, how much fat was on the fauna? What kind of cuts are you requesting? Are you getting bone-in or boneless cuts? If you want boneless cuts, this volition reduce the total pounds of production returned to you from your butcher.
What kind of creature you are processing will also make a difference in the pct of product y'all ultimately receive. Dr. Christopher Raines, old Animal Science professor, has a handy canvass that describes the average per centum of yield in the butchering process for pork, beef and lamb.
Dr. Raines' document says when converting an beast into a carcass, the average pct of yield for pork is around seventy per centum, beefiness threescore percent and lamb l percent. Turning that carcass into individual cuts of meat; the boilerplate yield for os-in cuts is 75-eighty percent of carcass weight for pork, 65-70 percent for beef, and 70-75 percentage for lamb. Dr. Raines points out that aging and further processing can decrease your concluding product weight. If your butcher is hanging (aging) the carcass for 2 weeks, there is moisture loss due to evaporation. If you lot are curing hams and bacons from your sus scrofa, applying a heat process to your meat cuts may besides reduce your final yield.
Using these tools, you should be able to brand a crude estimate on the amount of product yous will have for sale, 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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