Loading...
You are here:  Home  >  Money Matters  >  Marketing  >  Current Article

How Do You Pay Bills With $50 Profit Per Calf?

By   /  March 9, 2020  /  6 Comments

    Print       Email
I was reading an editorial the other day in a major beef magazine that got my attention. The author
Click here to subscribe or log in to read the rest of this content.

You can sign up to read 3 articles a month for free, or choose a monthly or annual subscription to get all 7 new articles a week, read the over 2,500 articles in our archives, and get free bonus content!

On Pasture is the most read grazing publication in the world! And, at just 16¢ a day, it's a bargain!
    Print       Email

About the author

Publisher, Editor and Author

Kathy worked with the Bureau of Land Management for 12 years before founding Livestock for Landscapes in 2004. Her twelve years at the agency allowed her to pursue her goal of helping communities find ways to live profitably AND sustainably in their environment. She has been researching and working with livestock as a land management tool for over a decade. When she's not helping farmers, ranchers and land managers on-site, she writes articles, and books, and edits videos to help others turn their livestock into landscape managers.

6 Comments

  1. George says:

    And if one does all that, and buyers still use auction houses to gauge what they will pay for your cattle?

    I sold 40 cows, and twice as many calves last year. All grass fed/finished, vaccinated, easy handlers, etc etc. Couldn’t get anyone to pay more than $1/lb for anything. Ended up moving the whole cow lot to the sale barn just to unload them all at once. Add in the costs of hay production, reduced yields, and buying in hay to make up for it… has proven a very hard few years for beef operators, even small ones.

    • Greg Judy says:

      You have to do the leg work to make your own markets. Start out by just trying to direct market a portion of your livestock sales to private customers. If you raise a product that is different, no hormones, no gmo grain, no pesticides, etc that is your neon sign that you need to get out to your potential customers.

      When we started 20 years ago, we sold to our friends and expanded our sales each year from that. Sale barns will never pay you what your animals are truly worth.

      I was exactly in the same boat that you described when I first started. I just figured that if i raised the best they would pay me accordingly. I found out the hard way, sale barns sell animals, that’s it.

      We are 100% responsible for selling quality animals to folks that pay the price we set, not the sale barn. This price that we set allows us to pay our bills and make a good living on our farm.

      • Greg, can you give a breakdown of the markets you sell to?
        a. Friends and Family: %
        b. Farmers markets: %
        c. Quarters and Halves through the newspaper: %
        d. Quarters and Halves through other promotion methods: %
        e. What other promotion methods: %
        f. Steaks/ Roasts / Ground beef by the cut? %
        g. Do you deliver to customers? What %
        h. Do you have pickup locations? %
        Etc.
        I would just like to get an actual breakdown of what you are doing.
        i. It is fine to say start marketing, but exactly what actions are you doing?
        j. If it is your wife doing the actions, that’s fine, what actions is she doing?
        k. What actual methods are being used?
        l. How do you take your orders?
        m. Do you have someone who packs your orders for you?
        n. Do you sell through a cooperative that takes your animals and processes them and sells them?
        o. What percentage of your income comes from your hay un-rollers?
        Not sure you will want to give out that data, but that is what I want to know.
        Thanks a lot.
        SV

        • Greg Judy says:

          Steve we sell in a multitude of different channels. First you have to let people know your story of your farming methods.

          Your customers that you are looking for need to be folks that are 100% supportive of the way your animals are raised.

          Newspapers and magazines are not effective tools for marketing meat, that was our experience. We gave it a try though.

          Quarters, halves and wholes are presold to customers. We deliver the live amimal to the locker, customer picks up their portion of their meat there.

          We also sell 6-8 weight grass steers to other grassfinished meat producers that have trouble raising enough to meet their demand.

          We also sell finished steers to other grassfinished meat companies. In many instances, they take them straight to their locker plant to be processed.

          Not sure what your question on our bale unroller sales has to do with marketing our beef?

          I will say this, you need to be diversified in your farming endeavors. Brainstorming other avenues of possible income on your farm is not a bad thing.

          If you only have one source of income, that is putting all of your eggs in one basket.

      • Grant Hamilton says:

        When you say $50 per calf profit, do you mean thats whats left after all farm expenses are paid or do you mean $50 is what that calfs margin has been for the year?

        Whats the total per calf income?

You might also like...

A New Meat School Coming to a Town or Computer Near You!

Read More →