Average Cost of Diifferent Cuts of Beef
Raising livestock for direct-to-consumer meat sales requires careful record keeping and analysis to decide profitable pricing.
It doesn't matter if you are selling halves, quarters or unmarried cuts, you need to know your cost of production offset. What are your costs of raising that brute from day one until the mean solar day of slaughter? In any business effort, keeping good records is essential to knowing if you are going to be assisting or non. Once you know your price of production, there are some tools y'all can use to assist you determine what cost you may desire to attach to your fine, subcontract-fresh production.
Mike Debach of the Leona Meat Found in Troy, Pennsylvania, has a nifty process you lot tin can use that will help you figure out your costs after processing and then you tin can decide your retail cost. For this example, sympathise that the cost of product will vary depending on the breed of the animal and production methods (i.east., grain-fed, grass-fed). Co-ordinate to Dr. John Comerford, retired Penn Land kinesthesia, 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. Then, for this example, let's say nosotros take a grass-fed, Angus steer that dresses out to a hanging carcass weight that is 58 percent of its live weight and your cost to get that fauna to slaughter weight is $1.35 per pound of alive weight.
Determining the cost of your animal
- Start with your per pound price of the alive animal (as mentioned before, your cost to raise that brute).
- Divide this corporeality by 58% to get your "hanging price." (That animate being is now a "carcass" afterward it is slaughtered. This determines your new price per pound at "carcass weight.")
- Add in your processing fees, trucking, etc., to the "hanging toll."
- Split the total by 65% to get your "cut-out" cost (breaking the carcass down into individual cuts of meat).
- Divide your cut-out cost past the percent mark-up you desire to attain the "retail value" cost you will ultimately charge.
Example
- Cost of the live animal = $1.35 per pound
- $1.35 divided by 58% = $2.33
- $two.33 plus $0.65 (per pound processing fee) = $two.98
- $2.98 divided by 65% = $4.58
- This is the final cost of your animal becoming unmarried cuts of meat
$4.58 divided by 75% = $6.11
A sale price of $half-dozen.eleven per pound would give y'all a 25% return on your production.
As you can see, in every step of the process there is a reduction to your last yield of finished production. So, your cost per pound will go up with every step from live animal to cutting and packaged product. The in a higher place instance volition requite y'all a crude estimate which can aid you to remain profitable. Keep in mind, it is a "rough" guess. A lot of variables can change these percentages. For case, how much fat was on the animal? 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 animal you are processing will also make a departure in the percent of product you ultimately receive. Dr. Christopher Raines, erstwhile Animal Science professor, has a handy sheet that describes the average percentage of yield in the butchering process for pork, beefiness and lamb.
Dr. Raines' certificate says when converting an animal into a carcass, the average percentage of yield for pork is effectually lxx pct, beef 60 percentage and lamb l percent. Turning that carcass into individual cuts of meat; the average yield for bone-in cuts is 75-eighty percent of carcass weight for pork, 65-70 per centum for beef, and 70-75 percent for lamb. Dr. Raines points out that aging and farther processing tin decrease your final 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 also reduce your final yield.
Using these tools, you should be able to make a rough guess on the amount of product you lot will take for sale, what your costs are, and what you volition need to charge your customers to remain assisting.
Source: https://extension.psu.edu/how-much-should-you-charge-pricing-your-meat-cuts
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