Help me start a butcher shop!

[chef jimmyj]

Try talking to these guys... https://www.thebutchersguild.org

On pricing/profit, you really need to decide where you want to do business. In NYC, East Village Meat Market, a Rib Eye Steak sells for $25 per pound, more for Kosher or Halal. In Harrisburg, PA, GIANT Market, the same steak is $9.99 everyday and $6.99 on sale. Auction price is going to vary, greatly, by location as well. Your question is impossible to answer without knowing your intended market...JJ

 

[Ahmed Alrawashdeh]

Here is the message I sent thebutchersguild.org:

Hello,

I am starting a butcher shop soon and wanted to know how much money is typically earned per steer if bought at auction, personally processed into retail cuts, and sold in a meat department display case at regular grocery prices vs specialty butcher shop display case pricing.

Here are my questions:
- What is the total specialty butcher shop value of a 1200 lb steer on the hoof?
- What is the total grocery meat department value of a 1200 lb steer on the hoof?

I know most grocery stores buy boxed beef--I just wanted to know the total retail values of steers bought at auction.

I live in Phoenix, AZ.

Thanks!

 

[smokerjim]

I know your stuck on (steer on the hoof) and I don't know why, dont you think if there was a bigger profit margin doing that the supermarkets would still be using them.ive been butchering in retail for over 30 years, when I started in the mid eighties it was just about the tail end of hanging beef, it was a lot harder work, a lot more labor needed, today I'm happy we went to box beef, much easier, quicker, also its very hard to find people who want to do this type of work. Can't tell you how kids I tried to train over the years but I'll bet 8 out 10 quit with in 1 month. So like the others said you should go work in a supermarket or butcher shop for a year or two and make sure you actually like this type of work. You are talking alot of money to start something you may end up hating. But anyway I hope you succeed with your dreams.

 

[Ahmed Alrawashdeh]

Well the thing is I couldn't find any halal boxed beef suppliers, they all sell retail packaged only!

That is why I wanted to do on the hoof.

For the profit margin, I think ill eventually just raise my own cattle on a ranch.

 

[jcbigler]

Well the thing is I couldn't find any halal boxed beef suppliers, they all sell retail packaged only!

That is why I wanted to do on the hoof.

For the profit margin, I think ill eventually just raise my own cattle on a ranch.

Go talk to Creekstone Farms, which I linked to earlier. They are certified Halal and supply boxed beef all over the country. They are also more expensive than most suppliers.

I think I read about another supplier over in..Iowa maybe? that is Kosher and Halal certified also, but I forget their name.

 

[Ahmed Alrawashdeh]

I will check them out, thanks!

I also need it at regular boxed beef prices too though.

What if I just made two companies, a halal boxed beef company and a halal retail butcher shop?

That way I'll be able to manipulate the price of halal boxed beef down to regular non halal prices.

The price for halal beef is really really crazy these days.

 

[chef jimmyj]

ABSOLUTELY! Now that is a great idea. The general public would love beef that is humanely raised, slaughtered and processed at prices that could ccompete with feed lot beef that is not always of the highest quality...JJ

 

[Ahmed Alrawashdeh]

Alright great, thats what my goal is then.

So for my boxed beef company, do I get into contact with feed lot managers and negotiate a contract price per pound depending on the order quantity directly or do I have to go to all these auctions for fully finished steer?

There are like two big feedlots near Phoenix, AZ where I live. One of them is owned by Five Rivers Cattle (https://fiveriverscattle.com/).

Also, is feedlot life humane or is it like a cramped chicken factory where the animals are too heavy for their feet?

Thanks!

 

[jcbigler]

There are like two big feedlots near Phoenix, AZ where I live. One of them is owned by Five Rivers Cattle (https://fiveriverscattle.com/).

Also, is feedlot life humane or is it like a cramped chicken factory where the animals are too heavy for their feet?

Have you ever been to a feed lot? If you haven't I think you need to go take a tour. You might end up being a vegan after that.

Generally, when people talk about humanely raised and slaughtered beef, one of the key words you are looking for is "grassfed", where the cattle are run and grazed on large open farms. Other keywords are "hormone free" and "antibiotic free". I live in an area where we have several of these kinds of farms (actually, one of the farms surrounds my family land on two sides). The beef from these farms is almost twice as expensive as beef raised in feed lots.

For example, the Creekstone Farms processor that I mentioned earlier sells a 14-16 lbs packer trimmed beef brisket for about $129. That's about $8.60 per pound. I usually buy USDA Prime Grade brisket from Costco, which is usually between $3.00-3.50 per pound. Costco buys their meats from Excel. For the "natural" and humanely raised and slaughtered beef from Creekstone, you are paying more than twice what you would for beef from Excel. The economics of Halal and Kosher, with the lower demand, and higher supply and production costs aren't in favor of getting the prices into the same range as non Halal and Kosher meats.

I think you need to go talk to some butchers and feed lot operators and processing plant operators. Most of us on this forum don't have that level of involvement. We're more the end users, and are mostly interested in cooking the beef after it's been raised, slaughtered and processed.

 

[Ahmed Alrawashdeh]

Gosh thank you so much!

Until we expand and raise our own cattle, feedlot steer will have to do.

Thanks!

 

[jcbigler]

I'm only vaguely familiar with Halal qualification. Do feed lot raised animals qualify as Halal? I think one of the reasons that Creekstone got their Halal certification is because they only buy grass fed beef.

 

[Ahmed Alrawashdeh]

I'm pretty sure the only difference in Halal and non Halal is the type of animal and the slaughtering process.

The only thing hard about certification is you need a Muslim slaughterer and you need to pay a daily fee for a Halal certification inspector to be at your slaughter house at all times of operation.

I mean, there are obvious humane requirements for raising the animal but I think the regular USDA guidelines satisfy this criteria already.

That is why the extra expense doesnt make sense to me.

 

[chef jimmyj]

There is nothing humane in the way feedlot beef is raised or slaughtered. Feedlot animals are led down a shoot. Depending on the operation one or more animals are stunned by a pneumatic bolt hitting the head. The animal sees this coming. Not Halal.This takes place with the next group watching. It does not take long for the next group to realize something is wrong.Not Halal. There are no prayers, just electric prods to keep the animals moving. Not Halal. The animals are bled out but not necessarily with a single cut as required by Halal law. So, right there are issues buying from a feed lot/processor.
I worked in a couple restaurants with a large Muslim kitchen staff. I was the only White Boy allowed to prepare the meals during Ramadan. They trusted I knew the rules and would follow them...JJ

 

[Ahmed Alrawashdeh]

I realize that non halal slaughter is really not humane at all but all i want to do is buy the steers from the feedlot in bulk while they are still alive.

I will then observe accreditation requirements when slaughtering the steers I just bought.

I know how to slaughter an animal properly so it will be done humanely.

My question is, I'm going to need the cheapest steers I can get to start this project--can I buy fully finished living steer from a feedlot manager directly or do I have to go to livestock auctions and buy them one by one?

Surely there must be a way to buy wholesale living steer!

 

[jcbigler]

There is nothing humane in the way feedlot beef is raised or slaughtered. Feedlot animals are led down a shoot. Depending on the operation one or more animals are stunned by a pneumatic bolt hitting the head. The animal sees this coming. Not Halal.This takes place with the next group watching. It does not take long for the next group to realize something is wrong.Not Halal. There are no prayers, just electric prods to keep the animals moving. Not Halal. The animals are bled out but not necessarily with a single cut as required by Halal law. So, right there are issues buying from a feed lot/processor.

And this is what sets Creekstone apart. They designed the plant and the processing system to be as humane as possible. Even the air circulation system is one way so they animals coming in don't smell the blood or hormones from the ones that have just been killed and slaughtered.

Here's an article from th New York times about them from a few years ago. Lots of other names here worth remembering too.

https://www.nytimes.com/2010/03/24/dining/24beef.html

 

[jcbigler]

My question is, I'm going to need the cheapest steers I can get to start this project--can I buy fully finished living steer from a feedlot manager directly or do I have to go to livestock auctions and buy them one by one?

Surely there must be a way to buy wholesale living steer!

Yeah, you go to the cattle auctions. You can go into small farming communities and approach the cattle farms and buy individual heads of beef if you want. Prices will probably be higher than buying at auction though I would assume?

Lots of families will either raise, or buy a head of beef to have slaughtered for their own usage through the year. Sometimes cheaper than buying at retail. But usually it's because they get a better product in the long run and can dictate which cuts of meat they want or how they want it cut, i.e. thicker briskets, or plate ribs, etc..

 

[Ahmed Alrawashdeh]

Does creekstone processing plant buy their cattle from auctions? They slaughter 1000 steer a day.

 

[jcbigler]

I think they go to individual farms that raise their cattle the way they want them too, i.e. grass fed, no hormones or antibiotics, etc... But they are buying a bunch and have the market power to buy what they want at the prices they want, which are still higher than feedlot produced cattle. They cater to the high end of the market, barbecue contest buyers, gourmet high end restaurants, and high end barbecue restaurants like Franklin Barbecue.

I'm sure you you were to start a business as a Halal butcher or distributor of Halal beef, you could buy from Creekstone. Let them handle the slaughtering and processing, and then you handle the sales to your individual customers or restaurants in the Muslim community you could make money.

 

[chef jimmyj]

Another option to feedlots are Dairy Farms. The cows have to be refreshed by giving birth and the heifer needs her first birth to start producing milk. A large operation can end up with an abundance of Bull calfs that are castrated and may be sold as is or raised to market weight before going to auction. Since milk butter fat is at its best from grass fed cattle, these are likely a better choice. You may be able to negotiate a good price before they go to an auction. ..JJ

 

[Ahmed Alrawashdeh]

Oh wow, thanks jj