Photo above taken today on the farm. Remember those cute little bottle calves we were feeding earlier this year? That’s them!

Eating beef without going broke:

As beef cattle producers we are finding ourselves in an interesting position. We have cattle to sell but it’s hard to ask people to spend the amount of money that current prices are demanding. It’s easier to load the cattle up and take them to a larger feedlot than it is to market to individual families and customers. However, it is important that we share what we do know about the current prices, the future of the beef industry and what we would suggest to families wanting to eat healthier beef.  Once our customers and potential customers have this information we believe they will be able to make a more clear decision on their grilling meat of choice this year.

Why are prices so high? 

The high prices are a combined result of natural disasters and a recovering market.  The beef industry was just beginning to recuperate from the “mad cow” scares and “pink slime” concerns. However, as demand increased the timing collided with a three (potentially four) year drought and a blizzard in our western states.  The drought caused low birth rates, weakened our cattle and decreased our feed supply (hay, grass and corn).  Our farm personally lost many calves due to insufficient nutrients and premature births. We also had to cull several older cows who couldn’t produce anymore after the toll the dry, hot conditions had taken on their bodies.  Along with this drought, an early blizzard in South Dakota caught many ranchers off guard and as a result they lost tens of thousands of cattle last year.  Simply stated; our beef supply is low for reasons outside of our control.

“We have been in a drought situation for much of the last three years which has caused a 60-year low in cattle numbers. We are now looking at a period of reduced production as part of that process is allowing cows to mature, and allowing people to rebuild their herds,” Derrell Peel, agricultural economist based at Oklahoma State University, said in an article published by NBC news.

Will prices go down before summer? 

Beef supplies are expected to continue to decline which could lead to increasing prices through grilling season over the summer.  Some may ask how the demand could stay strong with the prices so high? Won’t it level off with a lower demand matching the low supply? Even with our economy still recovering the demand may not suffer as much as one would think.  It depends on a family’s income and the value placed on beef within their menu planning. Many people see the health benefits, flavor and menu variety as worth the higher price. They may not purchase steaks from the grocery store as often, but they are willing to pay a little more for the hamburger.

Personally, we believe the prices have stabilized for the time being. We are not sure what the future holds honestly, but we do not expect prices to go back down anytime soon.

However, we do expect more people to branch out with their purchasing methods. If a family were to purchase their beef straight from the farm then they could have both hamburger and steak for the same price. Many consumers are already doing this to cut out middle costs and to be able to buy in bulk at a fair market value. Of course, this also allows for families to know exactly where their beef comes from and to purchase healthier beef than what most grocery stores can provide at that price.

How will Britt Farms respond to the higher prices? 

Like other producers we are stretching our feed supply to the max through rotational grazing which allows our cattle to eat grass longer and still receive the nutrients they need. We produce our own corn which allows for us to save on some feed costs. After the first of the year we culled several head of older, weakened cows (mostly as a result of the drought) and now we are needing to replenish the herd. At these prices though we are carefully discussing options so we can have the best return on our investment. We are thankful to be in this industry and we want our customers to still be able to serve beef on their table even with the current market trends. We commit to doing everything possible to provide quality, healthy meat for less cost to the consumer.

Right now we have 13 head meeting natural Angus beef standards (antibiotic and hormone free) available for direct purchase. Based on the current market prices we are selling these cattle at a live weight cost of $1.47/lb.  The processing fee is $0.41/lb through King’s Processing in Marceline (or the processor of your choice).  When a customer pays live weight for an animal, they can expect to take home roughly 33% of the animal (according to the 2005 National Beef Quality Audit) with the beef cut to personal preference.  If a customer purchases a 1,200 lb steer, he/she can expect to take home nearly 400 lbs of meat.  Even with these higher market prices, our customers are paying less for our beef then they would spend at the grocery store, especially for steaks and roasts! Our prices are the same for every cut of beef.  Compare these prices with the local grocery store and our customers will enjoy saving money while at the same time receiving better quality beef and knowing exactly where it came from.

Grilling season doesn’t have to suffer. Steak dinners do not need to become a luxury of the past. There are options and we would be happy to work with anyone interested in buying in bulk now in order to save later.

The 13 head mentioned above will be ready by March, and 4 are already spoken for. We can divide an animal in half or by quarters depending on a customer’s needs. To join the waiting list please click here. For more information about our processor of choice or the cattle we raise, please click here for our Q&A page.

We are so grateful for our customers and for everyone’s interest in our farm and modern agriculture! We are blessed to feed the world!