The Beef Market

There are 3 different ways to sell or buy your Dexter beef

1. On the Hoof- Selling the live animal
2. On the Rail- Selling animal based off its hanging weight in the processor's cooler
3. Finished/Wrapped beef- The final product sealed and ready for the freezer

This method is selling the animal based off of its live weight before processing. This is the least common way to sell beef prospects as most ranchers do not have a calibrated scale on site. Oftentimes this method will include the weight loss that occurs, during the stressful trip to the processing location.

In Texas and Louisiana, most Dexters breeders have a typical price they use to sell their steers, but oftentimes the price reflects less about weight and more about age. A typical 8 month old Dexter steer, sold on the hoof, will go easily for $500. Let's say the average 8-10 month old steer is 300#. You take 300 X $1.65= $500

So the older that steer is, the more his processing weight is, and thus his value should reflect that feeding and care. If you sell a 15 month old steer at say 600# that would be valued at around $1,000. So do not give away your steers! For those buyers who do not have a farm, or room to hold another animal, the below options may suit their needs better.

This method is selling the weight of the hanging carcass as it hangs in the processor's cooler. The hanging weight reflects the weight of the carcass once the head, hide, legs, blood, organs etc are removed ( Which is a lot more weight than you would think.) This may be the easiest way to sell your beef prospects as the processors will base their fees on the hanging weight of the animal. So you know that you will get that hanging weight number quickly. I would say this is the most popular way most small producers sell beef.

Here is an example of the process for this type of sale (Pretend you do not know the buyer, so not a family member or friend.) There are many ways you can do this but this has worked on our farm.

1. Determine your on the rail price ( Some grass fed beef goes for over $5/lb, but average for Dexter would be in the $4- 4.25 dollar range. For this example let's use the $4.25/per pound hanging weight.
2. Your buyer expresses a desire to buy 1/2 carcass ( careful selling Quarters as that poses additional issues, when dressing the beef.) We only sell half and whole carcasses, unless the same family wants to split a half.
3. Estimate the weight of the steer and calculate its estimated hanging weight. If the steer's live weight is approximately 850# here is how you estimate its hanging weight. 850# X 0.60(% loss) = 510#
4. Your processor charges $1/pound hanging weight to do the processing, hanging, and dressing of the beef. Plus they typically add in a kill fee of around $50 ( each is location is different.) So if this buyer was buying a half carcass the hanging weight would be 510/2= 255# The processor charges $1 x 255= $255 plus $50 kill fee = $305.
5. Create a contract for the buyer to pay $305 deposit to hold the beef slot and to ensure you get at minimum the processing fees paid for. The rest of the hanging weight fee will be due once the processor has that figure for you, typically on the day of the processing.
6. Each processor typically gives you a cut sheet to fill out. Ask your buyer to select the cuts they want for their half carcass. On the form, include your name to call before the beef is released to the buyer to ensure your payment was received and cleared.
7. On the day of the processing, deliver animal to the processor. If possible get live weight. Later in the day you will get the hanging weight. Notify buyer of documented hanging weight by processor. Depending on your hanging time ( 7 days to 21 days,) make sure you get your payment before the processor packages the beef, otherwise you will be stuck with their cuts if they do not pay you.
8. You can handle the processing fees two ways, you can deduct those from the total bill and have the buyer pay the processor and pick up the beef themselves OR you can get full hanging weight payment plus keep the deposit and pay the processor yourself, if you are delivering the beef to the buyer's home.
9. In this case the hanging weight ended up being 520# so the processor will want $260 for processing that half. The hanging weight price is 260 X $4.25= $1,105 add $5 more for the extra processing, leaving the total payment due of $1,110 for the carcass. In this case we decided to let the seller pay the processor for the processing fees and deliver the beef, in a farm to home fashion.
10. Give the buyer a final receipt showing the breakdown of the costs and receipt/paperwork from the processor. Before you deliver the beef, make sure they have ample space in their deep freezer. If they end up needing more time but the beef is ready to be picked up, some processors can allow you to rent a freezer locker for a monthly fee. These are typically pretty small lockers so it would be best for them to be ready.

This type of sale requires licenses and approval from the state. You will need to have a separate area, detached from your home residence, to store packaged beef in inspected freezers. You can not store beef in your home, that you sell to the public.

The cut/wrap yield is the final percent that comes from the cut, packaging and labeling of meat that will eventually go in the freezer. So the percent is what is left from Live weight to packaged beef.

Grass Fed beef will have a higher percentage yield since they typically have less excess fat to trim away. Grain Fed beef tends to have more exterior and organ fat than grass Fed cattle. Another thing that can alter the yield is your cut choice, like deboned steaks. A really good yield would be 75% but we have found that even with our grass fed steers we tend to yield out at closer to 65%. My grass fed steers naturally carry the weight well and are able to hang much longer than other grass fed breeds that come to the processor, due to their ample fat covering.

Here is an example to show the calculation: 850 lb steer

850 X .0.60 x 0.65= 332 lbs of package beef from that steer

The 0.60 is the live to hanging carcass. The 0.65 is the final yield from hanging to packaged.

Like I said before this final yield is also determined by the cuts kept and chosen, but overall this calculation will give you a estimate to work with.

These are just examples to give breeders a starting point. It is best to develop your own farm receipt documentation

Example of a Processing facility cut sheet

Every processor has a different cut sheet, so make sure you obtain your processor's sheet to know your options.

Example of a Paid deposit on beef portion BEFORE processing date

Example of Paid final charges BEFORE Delivery

Example of final PAID sales receipt at delivery