If You Sell Beef What Percentage Has to Be Beef
Raising livestock for straight-to-consumer meat sales requires careful record keeping and analysis to determine profitable pricing.
Information technology doesn't matter if you are selling halves, quarters or single cuts, yous demand to know your cost of production get-go. What are your costs of raising that animate being from day one until the solar day of slaughter? In whatever business endeavor, keeping skilful records is essential to knowing if you are going to be profitable or non. One time you lot know your cost of production, there are some tools you can utilise to help y'all decide what price you may want to adhere to your fine, subcontract-fresh product.
Mike Debach of the Leona Meat Plant in Troy, Pennsylvania, has a nifty process you can use that volition help y'all effigy out your costs after processing so you lot can make up one's mind your retail cost. For this instance, empathise that the cost of production will vary depending on the breed of the animal and production methods (i.e., grain-fed, grass-fed). According to Dr. John Comerford, retired Penn State faculty, the percentage used to determine the "carcass weight" varies depending on what kind of fauna it is (beefiness, hog, lamb), what breed the animal is, and the method of production. And then, for this example, let's say we have a grass-fed, Angus steer that dresses out to a hanging carcass weight that is 58 pct of its live weight and your cost to go that creature to slaughter weight is $i.35 per pound of live weight.
Determining the price of your animal
- Outset with your per pound cost of the live animal (as mentioned before, your cost to raise that animal).
- Divide this amount by 58% to go your "hanging price." (That animal 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 price."
- Divide the full by 65% to become your "cut-out" cost (breaking the carcass downward into individual cuts of meat).
- Divide your cut-out cost by the percentage marker-upwardly you desire to reach the "retail value" price you will ultimately charge.
Example
- Price of the live animal = $1.35 per pound
- $ane.35 divided by 58% = $2.33
- $2.33 plus $0.65 (per pound processing fee) = $ii.98
- $ii.98 divided by 65% = $four.58
- This is the last price of your animal becoming single cuts of meat
$4.58 divided past 75% = $6.eleven
A sale price of $6.xi per pound would give you a 25% return on your product.
Equally you tin can run into, in every pace of the procedure there is a reduction to your concluding yield of finished product. Then, your cost per pound will go up with every step from live animate being to cut and packaged product. The above instance will give you a rough guess which can help you to remain profitable. Keep in listen, it is a "crude" estimate. A lot of variables tin can change these percentages. For example, how much fat was on the animate being? What kind of cuts are you requesting? Are you getting bone-in or boneless cuts? If you lot desire boneless cuts, this will reduce the total pounds of product returned to you from your butcher.
What kind of animal you lot are processing will also make a deviation in the percentage of product you ultimately receive. Dr. Christopher Raines, erstwhile Creature Scientific discipline professor, has a handy canvas 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 percent, beef 60 pct and lamb fifty percent. Turning that carcass into individual cuts of meat; the average yield for bone-in cuts is 75-80 percent of carcass weight for pork, 65-70 percent for beefiness, and 70-75 per centum for lamb. Dr. Raines points out that crumbling and further processing can decrease your last product weight. If your butcher is hanging (aging) the carcass for two weeks, there is moisture loss due to evaporation. If you are curing hams and bacons from your pig, applying a heat process to your meat cuts may besides reduce your final yield.
Using these tools, you should exist able to make a rough estimate on the corporeality of product you will accept for sale, what your costs are, and what yous 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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