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re: Beef prices and farmers...

Posted on 5/18/20 at 2:27 am to
Posted by Decisions
Member since Mar 2015
1488 posts
Posted on 5/18/20 at 2:27 am to
quote:

Apparently the difference is that you guys aren’t farmers, you’re hobbyists.


I mean....in the strictest sense they are. You can’t make a living on it, but plenty of people keep a few head of cattle or farm the family’s old forty just for fun or tradition.

But I’m not going to throw shade on anyone for the size of their operation. I honestly feel like we’ve lost a lot with the consolidation over the years and hate to see it happen.
Posted by windmill
Prairieville, La
Member since Dec 2005
7022 posts
Posted on 5/18/20 at 6:23 am to
The cow was free."

Hmmmmm......
Posted by johnnyrocket
Ghetto once known as Baton Rouge
Member since Apr 2013
9790 posts
Posted on 5/18/20 at 7:14 am to
I’m glad I got out of it.

Lease my land and that farmer is losing his rear end right now.

When I did it I dealt with a smaller buyer / processor who sold to restaurants and smaller meat markets.
Posted by johnnyrocket
Ghetto once known as Baton Rouge
Member since Apr 2013
9790 posts
Posted on 5/18/20 at 7:36 am to
If I would get back in it I would.

Organize smaller farms.

Make sure the cattle could be considered organic.

Finance butchers to help them open up small organic protein boutiques wink wink it is a meat market.

Let the butcher who’s new title will be an organic protein consultant suggest how to use your cow properly for your family’s health.

Then have pictures of cows in nice pretty settings in the store, wine racks stocked with wines for this protein or that protein. Play some soft gentle music in the background.
Floor tile old black and white with pastel colors on the wall.

Even better have it online.
Then you pick the cuts.
We deliver it within x amount of miles from our protein counseling boutiques in small refrigeration vans like small Ford transit van.

In the 60’s and 70’s some butchers sold cows which most people split between x amount of people. They offer certain meat cuts for that price. Any cut outside that price you pay x amount per pound of that cut extra.

A local meat market around BR in the 60’s and 70’s use to basically sell a cow. They said you get this, this, and that for x dollars. Anything outside of this is x dollars extra a pound. Guys in my fathers bass club use to split a cow all the time. When we went to get the meat before going to the camp the place was a real meat market. When I was little the meat marker was kid friendly. My brother, sister, and I along with other kids would hide behind the candy rack eating all the candy we could.

Today do the same thing just dress it up and make it a gentle less stressful place for kids and moms.
This post was edited on 5/18/20 at 7:39 am
Posted by angus1838
Southeast Alabama
Member since Jan 2012
923 posts
Posted on 5/18/20 at 8:05 am to
I found my break even at about 75 head. I have a little over 250 now. You can scratch out a living but it would be hard. I supplement that with row crop and some produce. Funny thing is I might make 25 grand a year doing all that. Most of my expense is payroll cause I actually work a regular job and have to hire out labor. The repeal of the COOL act in 2015 is what is killing the little man right now.
Posted by White Bear
Yonnygo
Member since Jul 2014
14025 posts
Posted on 5/18/20 at 8:14 am to
quote:

The repeal of the COOL act in 2015 is what is killing the little man right now.
REgulation in general is killing the little guy. The rules are geared for Tyson/HDM types but apply to smaller operators, too. See 2011 FSMA for a good example.
Posted by bayoudude
Member since Dec 2007
24964 posts
Posted on 5/18/20 at 8:27 am to
Tiger foot

That’s about the same price you can buy a half over here in south MS. I just dont have the freezer space and can’t find one anywhere at the moment. Couple places around here taking orders for steers though.
Posted by Hangit
The Green Swamp
Member since Aug 2014
39215 posts
Posted on 5/18/20 at 8:35 am to
I bought 80/20 at Sam's 2 weeks ago for $3.58. It does a juicier burger. I use 90/10 for spaghetti. I broke all of my 90/10 into smaller packs and don't have the price tag any more.
Posted by OleVaught14
Member since Jun 2019
6878 posts
Posted on 5/18/20 at 8:37 am to
quote:

He literally gets paid $100k to let someone else work his land.


So he owns roughly what, 1000ish acres? Depending on where in the county it is.
Posted by mthorn2
Planet Louisiana
Member since Sep 2007
1236 posts
Posted on 5/18/20 at 8:46 am to
Here are basic percentages based on the way a slaughter house manages butchering. Obviously it will slightly differ with every animal and would change depending on how you want your animal cut but the percentages are more or less standard.

* Steaks (Rib, T-bone, Porterhouse, Sirloin, Flank) about 19% of purchased weight.
* Roasts (Chuck, Arm, Sirloin Tip) about 17%
* Round cuts (Eye Roast, Top Round Steaks, Bottom Round) about 9%
* Hamburger (depends on how lean or fat) about 45%.
* Miscellaneous (Short Ribs, Tongue, Liver, etc) about 10%

Based on a typical target live weight of 800lbs: A quarter of cow would be approx. 85lbs of beef. A half cow approx. 165lbs of beef, and a whole butchered cow around 330lbs. This averages to $6.50-$7.50 a lbs depending on how much or little you get. Longer you want your animal aged the more expensive the cost.

(Edit: these are aged, processed, butchered, packaged, and flash frozen prices. I've purchased a cow/steer every year for the last 5 years, dropped off to slaughter and process, and picked up once completed. I am not a farmer)
This post was edited on 5/18/20 at 8:54 am
Posted by angus1838
Southeast Alabama
Member since Jan 2012
923 posts
Posted on 5/18/20 at 9:54 am to
quote:


If you buy from the store, it’s likely coming from Brazil or Argentina


This is just false. More than likely you are buying US beef. And that's the problem without cool you don't know what you are buying. We just now lifted the ban on Brazilian beef. The ban was put on them in 2017. Argentina was banned for 17 years and it was lifted in 2018. What we import from Argentina isn't really shite. We import beef in this order
Canada
Australia
Mexico
New Zealand
The rest don't add up to crap
Posted by Thorny
Montgomery, AL
Member since May 2008
1913 posts
Posted on 5/18/20 at 11:22 am to
quote:

Why the hell would you pay taxes maintain a 15k acre ranch that you can accomplish with a feed lot? Why every cattle farmer should just convert to feed lots?



Because, as bad as the taxes can be on that 15K acre ranch, the costs associated with cattle in feedlots are even more.

Every steer in a feedlot has to be provided every bit of it's feed. It all has to be bought, and if the amount of feed is large enough, the feedlot operator has to invest in special equipment to handle the bulk feed (they aren't just throwing around 20 tons of feedbags every day.) Next, the feedlot has to handle the collection of manure and move it away from the cattle. If they don't, they get diseases in the herd that cut into their sale process, and because the cattle are in such cramped conditions, those diseases may spread rapidly. So, the feedlot operator has to be more vigilant about disease mitigation processes.

All of the sudden, it becomes easy to see why cow-calf operations are usually on pasture: a majority of the feed is free, manure doesn't need to be moved most of the time and diseases aren't as damaging. Oh, and it can happen on land that generally isn't suitable for row or grain cropping.

Hope that helps.
Posted by AgGator
Member since Nov 2009
132 posts
Posted on 5/18/20 at 11:41 am to
Lot of possibly misinformed stuff here. The beef industry is far more segmented than other animal protein sectors for several reasons including land requirements and age at slaughter. We also have much more variance in animal genetics than do swine and poultry which is why you rarely get a porkchop or chicken breast that tastes much different from the one you got before.

By all means buy from a local guy that has a date set up with the local locker but don't believe that just because you are buying local you are getting a better product. So much of the quality of the end product (after taking into account genetics) has to do with the feeding program they were finished on and in that regard the guy doing it in his backyard cant compete with a feedyard. He doesn't have the ingredients or experience. If you're buying anything other than burger you're not getting some old thin cow. You're getting a steer or heifer that is almost always less than 24 months old.

Another potential downside to buying entire sides or quarters is what to do with everything other than the roasts, steaks, and grind. Thats why packers have a role, its easy enough to sell the main cuts everyone wants. It's harder to find consistent markets for everything else.

Getting away from the quality side, large scale animal agriculture is far more efficient than a guy finishing 10 head on his own. Thats why they exist. Some posts have mentioned ending live weights of 800-1000 lbs. On a large scale we havent been that light in a long time. Steers are getting finished at 1350+ lbs regularly today. The bottleneck on the packing side is a bad deal that will hopefully get better but its there because it takes a large business to be able to efficiently buy, kill, process, and then sell that animal. And in bad times it takes a large business to be able to weather the losses.
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