Meat Quality Presentation at Western Colorado Food and Farm Forum - Winter 2015

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Producing Beef for the Retail Market Meat quality, customer satisfaction, and financial returns January 10 th , 2015 Ranch Foods Direct

Transcript of Meat Quality Presentation at Western Colorado Food and Farm Forum - Winter 2015

Page 1: Meat Quality Presentation at Western Colorado Food and Farm Forum - Winter 2015

Producing Beef for the Retail Market Meat quality, customer satisfaction,

and financial returns

January 10th, 2015

Ranch Foods Direct

Page 2: Meat Quality Presentation at Western Colorado Food and Farm Forum - Winter 2015

Few places in the world provide adequate nutrition for year-round grazing…

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Meat quality is directly related to feed quality and nutrition.

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The radical “grass-fed” ideology is failing both animals and eaters…

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Hunters know the importance of harvesting wild game at peak body condition in the fall…

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Grass-fed beef from Colorado mountain pastures in a dry year…

Poor quality grass-fed beef is killing demand.

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Grass-fed Angus/Wagyu heifers Craig Powell Ranch, Peyton, Colorado

A good grass season at the base of the Palmer Divide

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Grass fed beef - Powell Ranch - Peyton, Colorado Angus/Wagyu cross

Time of harvest and nutrition is critical for grass-fed meat quality

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Angus/Wagyu heifers, St. Francis, Kansas Post weaning, cattle are fed a healthy, drug free diet of hay and grain.

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Grass raised – hay and grain finished, St. Francis, Kansas Angus/Wagyu

Flavor and nutrition is in the fat

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Live Animal to Finished Cut Analysis 1,200 lb. finished animal x 63% yield = 756 lb. carcass x 74% yield to retail =

564 lbs. retail weight 564 lbs. x $6.30/lb. ave. USDA retail =

$3,553 revenue per head

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Financial Analysis – Finished Animal Slaughter fee $65 per head Processing fee (1,200 lb. live weight)

(74 cents/lb. x 756 lb. carcass wt.) $559 per head Total cost $624 per head

$3,553 - $624 =

$2,929 net per head Or $2.44 per lb. live weight

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Live Cattle Market Jan 5, 2014 $1.65/lb.

Selling at retail generates nearly $1,000 more income per head than the live cattle market.

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Financial Analysis – Light Weight Animal Slaughter fee $65 per head Processing fee (900 lb. live weight)

(74 cents/lb. x 500 lb. carcass wt.) $370 per head Total cost $435 per head

360 lbs. retail wt. x $6.30/lb. = $2,268 - $435 per hd. cost =

$1,833 per head $2.03 per lb. live wt.

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Dec 20, 2014 850 to 900 lb. Steers:

Ogallala Nebraska Livestock Market

$2.30 to $2.49/lb.

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Today, selling a light weight animal (feeder calf) at retail loses around $280 per head for the producer compared to the market price for feeder cattle, and nearly $200 less revenue per head for the processor if charges are based on carcass weight.

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Foreign live animals are around half the market price of U.S. cattle. Freight is approximately 4 cents per pound of meat from Australia.

Meet your competition…

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Marketing the whole animal, bone-in standard-cut , directly to the end customer nets the most value to the producer and works best for the processor, while providing the customer more value than commodity retail beef.