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Subject: Market Farming

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  • From: "Rick Williams" <mrfarm AT frontiernet.net>
  • To: "market-farming" <market-farming AT franklin.oit.unc.edu>
  • Subject: Pricing beef
  • Date: Sat, 19 Oct 2002 20:49:19 -0500


One of the most difficult things we have found in terms of marketing our
beef, is to fairly price the hanging weight product with our boxed beef and
our individual cuts.

We sell the individual cuts at the farmers market because that is the only
practical way to do it. At the farm we promote our various 20 pound
packages, but will sell individual cuts based on availability. We have a
long lead time, usually several months, in order to lock in dates for
processing. It is acceptable to our processor if we shed a date that we do
not need.

When we price the individual cuts and price we are generally pricing it at
or above the market for premium beef (such as the Certified Angus or
Certified Hereford). Then we use that information to price our packages. We
think we are fair with the pricing between those forms of product since
buying a package of beef is a bit less than buying individual cuts.

The problem comes in with the hanging weight. There is much less marketing
required with selling split halves and halves and it seems that the customer
should definitely get a lower price. When you work out the numbers for
individual cuts and pricing and then compare that to hanging weight, it is
roughly the same price. And you also receive liver in the hanging weight.

Can we hear from some folks as to their current pricing structure. Our
numbers are on our web site for hanging weight and packages. We would be
willing to share the individual cut prices if others would reciprocate. If
you are not comfortable with sharing that openly, please contact us direct.

What is a fair discount for hanging weight compared to if you bought the
meat in packages with the same cuts? 10% ? 20%

Our hanging weight price is $1.85/1.80 for split halves/halves and includes
the processing.

Sincerely,

Rick Williams
Misty Ridge Farm
Dairy heifers and dairy beef graziers
Viroqua, WI

www.mistyridgefarm.com



Hamlet (I, v, 166-167)





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