tag:blogger.com,1999:blog-1842136564899097734.post3293877134313877241..comments2023-12-15T02:04:08.213-08:00Comments on meat: Profitable farming: The sausage schemeBruce Kinghttp://www.blogger.com/profile/10995706761794063165noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-1842136564899097734.post-64358296516274072332012-04-15T22:50:07.663-07:002012-04-15T22:50:07.663-07:00Kelly, your comment is right on. Whenever you'...Kelly, your comment is right on. Whenever you're making a business decision it pays to work out all of the different options. So how much do I get from various sources for the same pig...Bruce Kinghttps://www.blogger.com/profile/10995706761794063165noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-17213515147213684442012-04-15T22:49:07.716-07:002012-04-15T22:49:07.716-07:00Caribou: If I start with inspected meat (meat kil...Caribou: If I start with inspected meat (meat killed in a USDA inspected slaugther plant), and I prepare that meat in an inspected kitchen (which around here means county health department) I can then sell direct to consumers from my premises, either fresh or cured/smoked products. So I can set up a storefront, either on my farm or off of it, and sell direct. That's how most of the meat shops in this area sell meat; they buy inspected meat in bulk and then process and sell it on premise. <br /><br />If I wanted to sell the meat through other retail channels I have to go through another layer of inspection and regulation for the processing. So to sell a pound of bacon in a store that I don't own/operate, I'd have to do another group of regulations, become a USDA inspected meat plant, basically. HAACP plans, federal inspector on premises, record keeping and a more-stringent building code (185 degree hot water, for instance. Stainless steel fittings, etc).Bruce Kinghttps://www.blogger.com/profile/10995706761794063165noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-43129450603520354782012-04-15T22:43:35.737-07:002012-04-15T22:43:35.737-07:00Bill: I didn't miss the labor thing; in fact,...Bill: I didn't miss the labor thing; in fact, I explicitly said that I was ignoring various costs in the post, one of which was labor. <br /><br />But there are labor costs built into some of the costs -- like the $2/lb for the sausage maker. Presumably part of that cost is labor. <br /><br />I think it's worth talking about labor, but it's a big enough subject that I'd like to do that in a post all by itself. What I'm after here is to give people an idea of what goes into product and production decisions.Bruce Kinghttps://www.blogger.com/profile/10995706761794063165noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-40562945403008364022012-04-15T22:40:22.158-07:002012-04-15T22:40:22.158-07:00Jordan Elizabeth; I'm glad you enjoy the blog....Jordan Elizabeth; I'm glad you enjoy the blog. <br />You're absolutely right that people will pay more for quality; that's one of the things that makes a small farm economically viable. It's an advantage that large-scale agriculture tries to copy -- industrial dairies have a picture of a red barn and green grass on their cartons, which isn't really what the farm looks like, but it makes a nice story for the consumer.Bruce Kinghttps://www.blogger.com/profile/10995706761794063165noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-73564551685572905392012-04-15T10:42:39.466-07:002012-04-15T10:42:39.466-07:00Via email:
I can't post on blogspot blogs, s...Via email: <br />I can't post on blogspot blogs, so here is what I mentioned about<br />prices for cut and wrapped hogs, as a consumer who's purchased them<br />and will do so in the future:<br /><br />As a local consumer who has purchased whole/half hogs that come<br />wrapped and cut, 5.50-6.50lb seems to be pretty typical for the Puget<br />Sound area for pastured pork from small farms.<br /><br />At some farmer's markets you will see higher prices, but enough small<br />farmers offer the 5.50-6.50 (and a few, mostly down south in Pierce<br />County, offer 4.50/lb) that it is a typical expectation.<br /><br />Hope this helps in determining pricing.<br /><br />--Mrs. JohnsonBruce Kinghttps://www.blogger.com/profile/10995706761794063165noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-61568191993061524562012-04-15T09:53:22.961-07:002012-04-15T09:53:22.961-07:00Let me first say I have no experience in marketing...Let me first say I have no experience in marketing pork to consumers (yet). With that said I believe a major factor in your decision that was not listed in your blog is what would you get for the hog without going the extra step in making it into sausage. I believe that if you take the amount you normally get and the amount you think is minimum you can charge and figure the difference that would be a starting point. If your putting out a lot of hogs each year there will be x amount of sausage you will end of selling at the minimum price. Some to retailers that will take the extra markup as their profit and some that is getting old and you have to move it. Jordan Elizabeth has some very good points. I could use her formulas and put in my local numbers (TN) and give you some more amounts. The only problem with her numbers and my numbers is unless you plan on selling sausage in CT or TN in the spring time they are not accurate.Kelly Johnsonhttps://www.blogger.com/profile/00092465009031810475noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-63897832069057674442012-04-15T09:23:32.539-07:002012-04-15T09:23:32.539-07:00knowledge; haha, guess that's why you are the ...knowledge; haha, guess that's why you are the successful farmer and i am not yet. labor is definitely a major cost that i clearly forgot to even consider. i guess i was, like you said, assuming that you'd be doing the labor yourself and therefore considering it profit. but like i said as well, i really think that people who actually care about their food are willing to pay the necessary cost of quality meat, so unless you are blatantly scamming people, i really don't think you will have any trouble selling said sausage. they key is making it unique and delicious. the unique part can really be covered on the marketing front- boar's head claims to be of the utmost quality and people claim it tastes better... but they have no idea if it actually IS of any quality and i honestly couldn't tell the difference when i ate meat. it was much easier to identify the difference between that and well fed, well treated animals though. thanks for pointing that out, and i'm curious about the answer to carolyn's question as well! my guess is yes? would that cost you extra money as well?Jordan Elizabethhttps://www.blogger.com/profile/16129990709349576595noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-39161488802232704882012-04-15T06:50:12.311-07:002012-04-15T06:50:12.311-07:00I think you could easily charge $5-6 per pound for...I think you could easily charge $5-6 per pound for fresh sausage and more for anything smoked. <br />Would you have to have a USDA inspected sausage kitchen to retail the sausage to the public?<br />Love your blog!<br />CarolynCaribouhttps://www.blogger.com/profile/14392892017185973174noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-83185932369497391442012-04-15T04:27:03.911-07:002012-04-15T04:27:03.911-07:00Seems like you're missing a big cost item in y...Seems like you're missing a big cost item in your math. Labor cost is missing. If you do most of the work yourself, you might consider that to be your profit. That said, you have lots of "overhead" costs which are legitimate expenses which should have a per-animal consideration. There are usually product-specific multipliers which work pretty well to determine price from cost. Generally, 4 is the typical multiplier, although I have seen a number as high as 16 for a retail landscape nursery who grew all their own trees and shrubs. Although $15/lb for sausage is really pricey, even in a suburban upscale retail shop. Farms around here charge that price for grass fed beef. <br /><br />It seems to me that the best (only) way to increase profit without increasing volume would be to decrease costs. $2/lb to make sausage seems high.Bill Gauchhttps://www.blogger.com/profile/01287284061932329662noreply@blogger.comtag:blogger.com,1999:blog-1842136564899097734.post-1195700611591571282012-04-15T01:48:37.699-07:002012-04-15T01:48:37.699-07:00thanks for writing this post; as someone who is lo...thanks for writing this post; as someone who is looking into farming (currently i am still a college student) i found the realistic breakdown of costs really fascinating. i'm a (half) business student, so i thought i would do some research (aka googling).<br /><br />at the local supermarket (i live in CT), the cost of pork is about the following:<br />Boar's head smoked ham: $7.99/lb<br />Boar's head bacon: 6.99/lb<br />Boar's head Bratwurst: 4.99/lb<br /><br />i would say boar's head is considered "quality" for general grocery store "i don't know or care where my meat comes from" situations... i tried with no luck to find any farms that sell of boar's head (surprise) or the breakdown of costs for raising a pig in a more... "compact" environment.<br /><br />however, let's assume you price your meat the same as boar's head is priced at the grocery store. you mentioned that you like to sell directly to the customer, so not having to pitch your product to stores and such saves you some money.<br /><br />70lbs of ham/bacon x ~avg.7.50= ~$525<br /><br />95lbs of sausage x 4.99= $474.05<br /><br />this leaves you with a profit of somewhere around... $373.24/pig and 2.26/lb<br /><br />you should also note that people seeking quality meat are most likely to be willing to spend a bit more... so i would start somewhere around that price when running "specials" and can honestly say you should be able to increase your price by an EASY (and fair) 2 bucks a pound.<br /><br />i wish i could have found better sources as far as the operating costs of the not so nice farms, but that lack of access is typical i suppose.<br /><br />also, your blog rocks; it's insightful, entertaining, and i'm really learning a lot. your previous post about farming unicorns was great. i'm actually a vegetarian, but mostly because i do not have the access or income to sustain an organic meat eating lifestyle (organic veggies and bulk bin grains are much cheaper, haha), and agree with both your ideas and the NYT's article. I think the key is simply mindful meat eating- realizing that we don't need it 3 meals a day, recognizing that you get what you pay for, and realize that meat should, in fact, be a privilege, something that is appreciated rather than a food of convenience. but then again i suppose we should eat all things that way. hell, we should live our lives more mindfully.<br /><br />anyway, sorry for the rant, thanks for the posts, and i look forward to hearing more about your profit decisions.Jordan Elizabethhttps://www.blogger.com/profile/16129990709349576595noreply@blogger.com