Starting a Freezer Beef Business

Extension personnel are often asked how to begin a freezer beef business. With the increasing interest in buying locally, the freezer beef business has become attractive to many.

Before you can even attract customers, you need to make sure you have a product that is acceptable to the consumer you are targeting. Are you offering a product that will provide a satisfying eating experience? Creating a quality beef product for resale starts with proper feeding and management of the cattle. Work with a nutritionist who knows how to finish cattle, whether on grain or grass, and can assist you with ration planning. Then, test your product! Raise an animal for yourself and make sure you are happy with the beef. Also, make sure you know what cuts your butcher shop is willing to provide. Share your cuts with potential customers and get their take on the product, even if it is just extended family members.

Once you are satisfied with the product that you will be offering for purchase, talk with your processor to make sure that they can handle your needs and expectations. Some examples of key discussions to have may include availability for slaughter dates, which cuts of meat they are capable and willing to provide, the costs involved in processing, how they bill these charges, and, most importantly, whether they are USDA USDA-inspected or a custom facility. Do not assume that all facilities are USDA inspected simply because they sell products in the front of their retail store. Many meat establishments in Pennsylvania operate under what is known as a federal retail exemption license. This license is provided at a cost to the business by the PA Department of Agriculture (PDA), which allows the processor to take meat that has been USDA inspected, larger wholesale cuts or boxed beef for example, and then further process them into fresh, retail ready steaks and roasts, ground beef and even sausages, bacon, ham, bologna, etc. Inspections for these facilities are performed, generally, annually by PDA personnel or by the county health department for certain counties in the Commonwealth. So, in order to sell meat by the individual retail cut or by the pound, the animal must be harvested at a USDA-inspected facility.

Another option in PA to sell "freezer beef" is to have the animal harvested at a custom-exempt facility. This may be thought of as selling only sides/halves or quarters, and the cattle may be killed at either a custom-exempt (no inspection) facility or a USDA-inspected facility. Customers buying "halves" or "quarters" from cattle harvested at a custom exempt facility must first buy the live animal, or half of the animal, or quarter of the animal, from you, and a bill of sale for that purchase must be made at the time of purchase. Perhaps the customer may even have you haul the animal to the butcher, and then work directly with the butcher on processing costs and structure. Whether you use a custom exempt or USDA-inspected slaughter facility, treat your butcher well and make it as pleasant to work with them as possible, so they want to continue to work with you. Most slaughter facilities have plenty of business and really do not need your business.

Many customers who are purchasing a side, or half, of beef for the first time have no idea what meat they should expect from that animal. Therefore, you need to understand the reductions from live weight to carcass weight to retail yield. If you understand, you can explain the process to your customers and improve their experience. There are also fact sheets from various breed associations and university sites that can help you with this. Dr. Jonathan Campbell, former Extension Meat Specialist at Penn State, has an article that explains the various factors for yields and losses during beef carcass processing. Many customers will also want to know what size freezer they should purchase to hold their newly acquired meat and will expect you to answer this as well.

Be transparent with costs, because first-time buyers will not know what to expect out of a 1400lb animal or how carcass weights can vary among animals. I often tell people that it is an animal, not a meat counter, so there is only so much product that can be created when preparing sides and quarters. It is best to walk them through potential cuts before sending them to the processing shop. If your processor offers a cut sheet to help with customizing the order, utilize this to speak with your customer about options. Nothing frustrates butchers more than dealing with someone who thinks they will get all steaks! Prepare your customers to talk with the butcher shop, taking their orders so they sound somewhat intelligent. Help them to understand the timeline involved before their meat will be ready for pickup. And, make sure they know to have their freezer up and running and at 0°F or colder, before placing frozen product in it.

Make sure you also know how to calculate your cost of production. Keep track of all expenses, including the value of the calf as a feeder calf, feed, trucking, marketing costs, and your time. Also, know the prices at the sale barn. It may make more sense to send cattle to the sale barn instead of putting all the time and effort into a freezer beef project. I also like to keep tabs on retail beef in-store prices just to stay abreast of what is happening in the market. Know the area you live in, and, if marketing locally, know the price that area can withstand. Talk to other producers in the area to see what they may be charging. Selling freezer beef can be time-consuming; be sure you are compensating your time and not losing money.

Article published first in Lancaster Farming.