05/17/2025
To further explain why we have made the decision we did… here is an excellent explanation of the cattle industry. And when you add what we do with grass finish that number rises even more.
💥Looking for BEEF?! Here’s what’s up💥
We’ve been receiving many messages from past customers, desperate for beef, and I wanted to openly explain why we’re not currently selling beef. I’ll do my best to explain it in a way that those who have no understanding of the interior workings of the cattle industry can understand it.
Here is a picture of today’s CME Cattle Futures prices. For those not in the industry, this likely makes about as much sense as algebra… let me explain…
The CME Futures set the live cattle prices that producers and feedlots receive for their cattle. Pricing is scheduled out up to a year in advance. The price posted in this screen shot is as of today.
$298.825 USD ($412 CAD) per 100lbs of ‘on the hoof’ feeder steer. A feeder steer is a yearling steer between 700lb-900lb, that is ready to enter the feedlot/finishing stage. $412 x a 900lb steer comes to $3708 CAD.
This 900lb steer will enter the feedlot and be fed out to finish. With feed and grain prices being at an all time high as well, this is a very expensive endeavour. Most recent numbers I can obtain are for Ontario in March, costing an average of $360 per 100lbs gained on a steer. The 900lb feeder steer will need to gain approx 600lbs before he’s ready to harvest. So 600lb gained x $360 per 100lb comes to $2160
Cost of steer $3708
Cost to feed $2160
Totaling $5868
Now, add in $1500 butchering fees, comes to $7368 BREAK EVEN price. This 1500lb steer would yield approx a 900lb hanging weight carcass. Meaning the break even, no profit to the finisher price comes to $8.19/lb hanging weight, again BREAK EVEN.
Now to complicate things further, this is just the market daily price. Often, on live sales, with eager buyers, the prices they’ll pay can be higher than the futures.
Morale of the story is, we’re not even slightly interested in having to charge that much for beef to even think about squeezing out a drop of profit. My rule always has been, ‘If I wouldn’t pay it myself, I’m not charging it’