I hope that you are enjoying the Value Added  series as much as I am enjoying writing it.

Today we are going to look into value adding cattle. I was born and raised on a cattle ranch. This is a subject that I have spent years trying to figure out how to make a bit more money doing.  We in the cattle industry have always had to depend on the market. We don’t get a choice on what we get for our livestock sales after spending a whole year dumping money into our livestock operation.

It has been a standard joke that most people that ranch have to have a side job to pay for their ranching habit. It is very true however,  not just a joke.  Cattle ranchers are subject to mother nature, the futures traders, import export policy, not to mention pests, disease, and public fear mongering.

Most ranchers have one shot at selling their calves. Things can go horribly wrong, or they can be great at the market. Much of it depends on what is going on with politicians, how other crops are growing and the weather. If there is a drought in one area of the country it can affect prices in others. If the US has decided to import copious amounts of beef from Brazil, Australia, Canada or other countries it can severely impact cattle prices and the ranchers yearly income.

Most ranchers don’t get paid on a monthly basis. They spend money for feed, veterinary expenses, irrigation water, machinery, land payments, interest, and more 354 days a year depending on the 1 day a year they sell their calves, or yearlings and hope to make a bit of a profit.

It is no wonder that less young people in every generation are choosing to stay on the family ranch. It is a very hard life, ranchers work every day of the year. There are no 9-5 hours or every weekend off. They enjoy the time they have away from the ranch as much as they cherish every day they get to live the life they love.

Stepping off of my soap box now.  It is with some consternation to me to try and figure ways to value add to cattle ranching. The most visible way is to sell meat.

You can cut out the middleman, and sell Organic, or Grass Fed beef to the public.  This comes with it’s own set of problems to overcome, but you can do it. 

I like my meat to be finished personally. This takes a lot of grain to get that meat to a nice marble. However you can still sell Organic meat which will add value.  Grass fed beef can be organic as well but it is always going to me more lean and less tender and juicy.  If it is important for you to have very lean meat then this might be the way for you to go.

The grass fed  and organic meat I have seen online ranges from $12 -$30 a lb.  That is much more than the $ 1.15 -$1.25 per lb. you would receive if you sold that animal live. However you have to remember if you are selling meat you will loose about 60% or more depending on  the weight of your animal in hide, hooves,  offal and bones if you are selling most cuts without a bone.

You also have packaging and marketing costs. You can make some good money doing this, but you have to plan and check out all of the laws in your state, regarding selling meat.

You will have to have your meat inspected before you can sell it. So you must have it slaughtered at a facility with a State or USDA inspector. This will also raise your costs as you may have to travel long distances to find a facility that complies. Some states have laws that you only need to have a state inspector to sell within your state’s jurisdiction. Please be sure to find out all the laws and rules of selling meat in your state.

Another good way to sell your beef is to sell it live on the hoof, and let the person buying it pay for the slaughter costs and be responsible for it. They would not have to have it inspected for their own use, unless they were a restaurant or some other type of food service or institution. You can ask a premium price (more than you would get at a sale barn) and not have to worry about storing the meat.

Hope this gives you some ideas, and you find a way to market your beef that value adds. Please let us know how you are marketing and any ideas you have to help America’s Small Farmers Value Add.