Wholsesale Vs Retail Cuts of Beef
Raising livestock for straight-to-consumer meat sales requires careful record keeping and assay to decide profitable pricing.
Information technology doesn't matter if you lot are selling halves, quarters or single cuts, you need to know your cost of production outset. What are your costs of raising that animal from day one until the day of slaughter? In any business organisation endeavor, keeping skilful records is essential to knowing if you are going to exist profitable or not. One time yous know your cost of production, there are some tools you can apply to assistance you decide what price you may want to adhere to your fine, farm-fresh product.
Mike Debach of the Leona Meat Plant in Troy, Pennsylvania, has a nifty process you can employ that will help y'all figure out your costs subsequently processing so you lot can decide your retail price. For this case, understand that the toll of product volition vary depending on the breed of the animate being and production methods (i.e., grain-fed, grass-fed). Co-ordinate to Dr. John Comerford, retired Penn State faculty, the per centum used to make up one's mind 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, permit's say we accept a grass-fed, Angus steer that dresses out to a hanging carcass weight that is 58 percent of its alive weight and your cost to get that animal to slaughter weight is $1.35 per pound of live weight.
Determining the cost of your animate being
- Showtime with your per pound cost of the live brute (as mentioned before, your cost to raise that animal).
- Carve up this amount past 58% to get your "hanging cost." (That beast is now a "carcass" after information technology is slaughtered. This determines your new cost per pound at "carcass weight.")
- Add together in your processing fees, trucking, etc., to the "hanging cost."
- Divide the total by 65% to get your "cut-out" price (breaking the carcass down into private cuts of meat).
- Divide your cut-out toll past the percentage marker-up you desire to accomplish the "retail value" cost you will ultimately charge.
Case
- Price of the live animal = $1.35 per pound
- $one.35 divided past 58% = $2.33
- $2.33 plus $0.65 (per pound processing fee) = $2.98
- $2.98 divided by 65% = $four.58
- This is the final cost of your animal becoming single cuts of meat
$iv.58 divided by 75% = $vi.11
A sale toll of $6.11 per pound would give you a 25% return on your product.
As y'all tin can run across, in every step of the process in that location is a reduction to your final yield of finished product. So, your toll per pound will go upward with every step from alive animal to cut and packaged product. The above case volition give yous a rough estimate which tin can help you to remain profitable. Go on in listen, it is a "crude" estimate. A lot of variables tin can change these percentages. For example, how much fat was on the animal? What kind of cuts are y'all requesting? Are you getting os-in or boneless cuts? If you want boneless cuts, this will reduce the total pounds of product returned to you from your butcher.
What kind of animal y'all are processing will besides make a divergence in the percentage of product you ultimately receive. Dr. Christopher Raines, old Animate being Science professor, has a handy sheet that describes the average percentage of yield in the butchering process for pork, beef and lamb.
Dr. Raines' document says when converting an animal into a carcass, the average per centum of yield for pork is around lxx percent, beef 60 percent and lamb fifty percentage. 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-seventy pct for beef, and lxx-75 percent for lamb. Dr. Raines points out that aging and further processing tin subtract your final product weight. If your butcher is hanging (crumbling) the carcass for ii weeks, in that location is moisture loss due to evaporation. If yous are curing hams and bacons from your pig, applying a estrus process to your meat cuts may besides reduce your concluding yield.
Using these tools, you should exist able to make a rough estimate on the amount of product you volition take for sale, what your costs are, and what you volition need to charge your customers to remain profitable.
mccrackenmashe1968.blogspot.com
Source: https://extension.psu.edu/how-much-should-you-charge-pricing-your-meat-cuts