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Post by hrfohio on Sept 6, 2011 21:10:07 GMT -5
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Post by kansasdexters on Sept 6, 2011 22:03:50 GMT -5
The ad doesn't specify if the price per pound quoted is based on live weight or on hanging weight. If it is based on live weight and the hanging weight is 60% of the live weight, then the price per lb of hanging weight is $1.75 divided by 0.60 = $2.92 per lb hanging weight (carcass weight) plus processing; or $2.30 divided by 0.60 = $3.83 per lb with processing included.
The live weight of an Angus steer is typically 1,100 lb, so if the pricing is based on live weight, the cost including processing would be $2.30 x 1,100 lb = $2,530 (whole steer)
The hanging weight of an Angus steer is typically 660 lb, so if the pricing is based on hanging weight, then you would pay $2.30 x 660 = $1,518 (whole steer)
You don't know from the ad whether the $2.30 per lb price quote is for live weight or for hanging weight --and as you can see, it makes a big difference in what the seller actually gets for the animal.
If you can produce (pay for the cow, the calf, the breeding, the calving, the pastures, the supplemental minerals and feed, the property taxes, the vet bills, the equipment depreciation, your time, etc) and process the animal for less than either of those amounts, then you can make money selling it. You have to figure what your production costs actually are, before you can price and offer beef for sale (and not lose money on the deal).
Patti
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Post by hrfohio on Sept 7, 2011 3:24:48 GMT -5
Ahhh.... this is interesting. I'm going to have to call this guy and ask him exactly what he means. A friend of mine wants to buy beef anyway, so it isn't like I'll be wasting his time.
Since I am assuming that I will have to sell of some steer in the future, that is why all the questions. But, I can see there is definitely room for profit if it is based on the live weight.. (although, if I were a buyer who was charged by the live weight and not knowing any better, I'd feel a bit gyped with what was actually put in my hand)
Very interesting.
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