By Blake Jackson
Even with cattle prices near record highs, selling beef directly to consumers continues to provide added value for producers. Two newly updated University of Missouri Extension guides give farmers clear insights into the costs, revenue potential, and strategies for marketing beef directly.
“Low cattle inventory has widened the gap between a finished animal’s live value and the total value of its retail cuts,” said Jake Hefley, MU Extension agriculture business specialist in Taney County. “Direct marketing gives producers an opportunity to capture part of that value rather than leaving it entirely to downstream segments of the supply chain.”
Producers can use Evaluating Direct-to-Consumer Marketing Opportunities for Local Beef in Missouri to explore the potential revenue and costs of selling freezer beef, while On-Farm Beef Finishing Planning Budget helps evaluate production costs for raising calves to finished weight. Both guides are free to download.
“Using both publications together helps producers compare the retail value of a processed animal with the cost to bring that animal to finished weight,” said Drew Kientzy, MU Extension senior research analyst.
“Grocery store beef prices are front of mind for many consumers. Knowing your breakeven cost and offering competitive pricing for a high-quality product can earn long-term customers.” Producers can also use the included spreadsheet tools to estimate costs and revenue for their own operations.
Direct-to-consumer sales can provide stability even when markets fluctuate. “Consumers value quality and relationships, making the prices they are willing to pay less volatile than prices received at the local sale barn,” said Jennifer Lutes, MU Extension agricultural business field specialist in McDonald County.
Photo Credit: gettyimages-imaginegolf
Categories: Missouri, Livestock, Beef Cattle