Am I in the wrong business?

ChanceTheRapids · #1 04/30/12, 12:43 PM

I'm curious: I went to a farmers market the other day, and ran across a few guys who were selling grassfed beef (no hormones, no antibiotics, etc.). I'd like to get some, I thought, until I saw their prices.

Now, I know I'm not going to get prices that you see in stores, because this is obviously a superior product. But man, $8 / lb. for brisket? And $10/lb. for hamburger? I had no idea this was the going rate. Or is it?

My plan for homesteading (a plan that is taking forever to implement) was to focus mainly on poultry & lamb, with ~4-5 cattle per year. If that really is the going rate, I might have to shift my focus a bit.

oh, I'm in the DFW, TX area.

Thanks all

ramiller5675 · #2 04/30/12, 01:41 PM

Did you see anybody actually buy any of that $10/lb. hamburger?

springvalley · #3 04/30/12, 01:55 PM

A lot of those people are trying to play off the grass fed kick, if their beef is grass fed or not. Most of these peole can get that price in the big inner city population, but some of us in the rural areas can`t get a price like they are. I charge more for my grass fed beef because it takes me longer to grow beef on grass, but I can`t get some of the outrageous prices some people can get. I get 10 to 12 dollars a lb for t-bones, and a guy I know near chicago gets twice or more than I do. He has a market that he can get that price, I don`t, people in the rural area are not as apt to send that kind of money for meat. So it all boils down to the economic area, if they can afford to buy your product for a certain price or not. > Thanks Marc

Cliff · #4 04/30/12, 07:20 PM

The trick is marketing. If you are good at it you could make yourself a good business selling grass fed beef. Lots of money in the DFW area. My thought has always been that the best market will be the younger upper middle class folks with young children. They tend to be the most health conscious group and they will spend the money. If you can get an in with that group of people then word of mouth would grow your business. Especially if you can get some customers who belong to a health food co-op. If they like your product they will tell everyone else in the group. I've thought about this as we live near some higher income areas here but I absolutely hate marketing. To the point that I'm getting rid of my Dexters because the only way to make money with them is private sales.

You'd have to investigate processing options in the area as well.

whodunit · #5 04/30/12, 07:27 PM

Dave Ramsey claims those catering to high-end clients are the ones becoming successful in business.

ChanceTheRapids · #6 04/30/12, 07:57 PM

Thanks all! I replied earlier but it must not have submitted...

That is what I kind of figured. Who knows, maybe a few years down the road I might be able to start up a cattle operation by buying some land a little ways away, and then sell it here in DFW. If it worked, it might actually be a good business to get into. Looks like I might have to start planning and learning. Thanks again

MO_cows · #7 04/30/12, 08:05 PM

If the beef was well and truly finished on grass, the price might reflect the cost. In most places, the window of "peak grass" that can get the animal fat enough to really be "finished" is pretty small. And, the animal is likely older than its grain finished counterpart. The seller might have 2 years or more into the animal as opposed to just over a year for grain finishing.

But it is just about as likely that the seller believes that yuppie types will pay that kind of money for any beef that is labeled grassfed.

G. Seddon · #8 04/30/12, 08:23 PM

I thought that area experienced a severe drought...if so, how could they finish animals on grass (or did they bring the beef in from some other place)?

ChanceTheRapids · #9 04/30/12, 08:53 PM

Yea, we were (well I guess we still are, technically) in a severe drought. However, this particular family raised their's east of DFW, which had more rain. Some counties weren't even "abnormally dry" according to the charts.

G. Seddon · #10 05/01/12, 06:07 AM

Ok, makes sense.

The beef industry is ever changing. Asking $10/lb. and getting it are two different things (see ramiller5675's post above).

heavyrebel · #11 05/01/12, 07:14 AM

Quote:

Originally Posted by whodunit

Dave Ramsey claims those catering to high-end clients are the ones becoming successful in business.

I'll attest to this.

bama-newsteader · #12 05/01/12, 11:28 AM

I havent bought this since we moved to Bama and have our own grass-fed beef, but in Connecticut at Whole Foods a year ago they were charging $8/lb for the grass-fed hamburger and $30/lb for the grass-fed filet mignon's. I bought the hamburger....