Current Pork and Beef Prices ???

[kc jayhawk 78]

Anyone have a link to a website that shows and updates regularly the current pork and beef prices per cut ? Ive found some on the net , but nothing real specific to my area (the midwest). Thanks

 

[pops6927]

There is nothing that I know of other than current advertised prices in the current ads for your shopping needs; if it's not on sale, you probably wouldn't want to buy it anyways.

Meat prices start with the current wholesale prices of primals and subprimals (carcasses broken down into their sectioned prices; i.e. chuck, loin, rib, short loin, sirloin, round, flank.  Those are primals.  Sub-primals are where they are further broken down into different parts, i.e. Arm chuck and Blade chuck, boneless rib eyes, sirloin tip, boneless chuck roll, 3 pc boneless chuck, NY Strip, Top Rounds, Goosenecks (bottom round, eye round and heel of round) and so on.  Carcass packing plants, based on supply and demand, place varying prices on the subprimals which will change daily, even hourly. wholesalers will buy all the different parts and pieces based on supply and demand.  For example, in the summer goosenecks aren't as popular as loin steaks or ribeyes, so their price could be soft because of a backup of the goosenecks.  So, the packers, wanting to move the goosenecks, will lower their price for a week, 4 weeks from now (everything is done in the future, i.e. "market futures") signalling wholesalers that the market is soft, get a good deal on these.  Buyers for different chains are constantly looking for deals, so they seize upon this deal on goosenecks and place advance orders for x no. of cases (3 to a box) and tell the advertising department to design a 'mid-summer beef blowout sale'.  The VP and Director of Meat Operations, based on the new low price 4 weeks from now, decide what final cuts will be advertised and give their ad plan to the ad guys, working out prices for each cut based on cutting tests meat manager submit every week showing % of certain cuts, or will request an updated cutting test on a gooseneck cut a certain way; say heel into 93% ground round, Eye of round sliced thick, rump into rump steaks, bottom round into bottom round steaks, stew beef and trim into regular 73/27% grind.  

So, the manager cuts a case of goosenecks into those cuts, first weighing the whole piece once unwrapped and purge from the bag drained, then cut into each individual cut, weighing each like-cuts (all thick cut eye round steaks, all rump steaks, all bottom round steaks, etc.) and comes up with a percenatage of each type of cut.  Based on that cutting test, it may show, out of 100% of the product, you yield 26% eye round steaks, 18% rump steaks, 31% bottom round steaks,15% lean ground round, 5% lean stew, and 5% regular grind.  And with each % of the whole, you have recorded the actual weights of the total cuts in each catagory.

Now, all the meat managers are required to send this information in.  I've had to stop production in the meatroom because the office called and wanted a cutting test done el pronto! and report the figures in an hour.  I only have one thing to say; "YES SIR!" and get'er done!

So, once these have been submitted, then the director of meat operations compiles, calculates and collates these into an average % of each section into the whole.  Then they list the $/lb and calculate the totals of each to a total retail of the piece.  Bought at x $/lb wholesale by the case, processed into these cuts, what our pricing structure is on each cut, then calculate the amount of profit that is garnered from that pricing structure.

Now the fun part!  Plugging in each cut's individual prices for a sale.  

"Well, lesse... regular bottom round steaks are $3.49/lb., lets make them $1.99/lb.  Rump steaks regular $4.99/lb, lower those to $2,99lb...." and so on.  They can calculate, based on the yields provided, what the total gross profit, if cut this way, what the gp will be on each gooseneck.  If you set your per-cut pricing low enough, you'll pop out this ad and know it will beat the other chains in low-ball pricing.  You lower your pricing structure to give a total yield of each gooseneck to generate 19.28% profit, knowing you'll get that much profit per gooseneck.

Then, you publish in a newsletter, 3 weeks from now we're going to have a sale on goosenecks, you must merchandise your goosenecks into these cuts to make a profit. We predict you will need 300% or more of your regular order to meet demand at these prices.  So, that indicates to each manager, if they normally order 10 boxes of goosenecks for regular demand, you should order at least 30 boxes and at minimum cut them 'this way' to get the correct yield.

Usually you know the pricing 2 weeks out; first as an advance ad notice, then the next week and the final ad notice, and you will see many prices changes in the interim.  

Now, you know as the meat manager you can further merchandise each cut into higher yield more profitable cuts by finessing the cutting techniques of his or her's cutters.  Cubed eye of round steaks, sirloin patties, butterflied rump steak, etc. yielding even more profit %.  But, the final prices are not known until the week before the ad, and even then can change by the day.  X chain is leaked they're going to put out 99¢ bottom round roasts.  Wow!  Y chain sends out a price change correction sheet 1 day before the ad sale starts, changing all the retails to counter that price, raising some to lower others.  And so it trickles down each chain; some change pricings, some don't, the ad war begins!

And, that is why you can't get by-the-cut pricing a week or two in advance!

 

[pops6927]

http://www.commissaries.com/inside_deca/publications/directives/DeCAD40_3.pdf

these are instructionals on how to run a Commissary Meat dep't for the Government.  I almost got the job at Fort Drum many years ago but got passed over for a veteran, which was ok.

 

[shoneyboy]

 

[pops6927]

Found an actual cutting test on an inside round:

cut test.jpg

• pops6927
• Aug 19, 2012

What is missing in this test is % to whole; such as on London Broil, is 5.25 lbs, to whole is 36.71% of total weight (5.25 ÷ 14.3 = 36.71%).  So, if you cut top round steaks for London Broil only and ground all the rest, you could compute yield w/top round and ground beef pricing.

 

[pops6927]

http://www.oldandsold.com/articles32n/meat-retailing-9.shtml

helpful article on meat cut tests

http://agr.wa.gov/foodanimal/custommeats/processingpercentage.aspx#BeefFrontquarter

This is a very helpful article on what to expect your yield would be from retail cutting a forequarter, a hindquarter, and half a hog, if you want to invest in such!

http://www.igaalliance.com/Institute/IGAInstitute/english/Meat/CuttingTests/06-105-1002.pdf

This is an explanation on how to perform a cutting test at IGA foods (I worked for them for several years) with actual cutting test form.  Also shows how to convert everything to ct (hundred weight) that then translates into %.

 

[kc jayhawk 78]

thanks Pops !