Selling Grass-finished Freezer Beef
Considerations for producers pricing grass-finished beef.
Grass-finished beef is in high demand. Many farmers are selling grass-fed beef as freezer beef. Grass-finished freezer beef will typically have a lower dressing percentage than grain-finished beef. Producers should consider that and other factors when setting a price.
In a group of 54 cattle finished on grass through Michigan State University (MSU) Extension research, there was an average live weight of 1,224 pounds (lb.) with carcass weights averaging 668 lb. This equates to an average dressing percentage of 55%. Typically, grass-finished beef will range in dressing percentage from 53% to 58%, depending mainly on the amount of fat cover, muscling and carcass size.
The leanness of grass-finished beef may attract some customers, but it is still advantageous to aim for 0.3-0.4 inches (in.) of backfat opposite the 12th rib. This will allow for a carcass that has enough cover to stay in the cooler for 14 days of aging without drying out too much. It will also allow for enough fat for the ground beef. Depending on the genetics, type and size of the animal, decent marbling can be achieved in grass-finished beef if enough high-quality forages are available.
The Grass-Finished Freezer Beef Pricing Worksheet on the MSU Extension Beef Team website takes into account the lower dressing percentage and goes step-by-step through calculations to determine the live-weight price comparison and average final packaged price. The worksheet gives current averages as of August 2013, but producers are encouraged to determine their own production costs and marketing margin before setting a carcass price.
Using the average of four grass-finished beef carcass prices obtained recently from different meat processors, the average carcass price (typically hot carcass weight but sometimes cold carcass weight is used) for grass-finished beef is $2.88. On a 1,200-lb. steer that has a dressing percentage of 55%, that equates to $1.58 per lb. on a live-weight basis. Current wholesale grass-finished beef is worth $2.50 per lb. on a carcass-weight basis or $1.375 on a live-weight basis. Current grain-finished cattle are bringing $1.25 to $1.30 per lb. on a live-weight basis.
Using the $2.88 per lb. carcass-weight price and a 70% yield of the carcass weight makes the final packaged price around $4.88 per lb. The average retail price of all Choice beef cuts in July 2013 was $5.35. Additional value can often be captured if individual cuts of grass-finished beef or smaller bundles of beef are sold.
Editor’s Note: This article is from MSU Extension.