It is rather frustrating to see sky high beef retail prices when the producer's market is flat.
I forget what current packer profit margins are but it's sickening.
Figure I have been hearing is 400%.
Last article I read, said the packer is selling a prime steer for around $3200. The farmers was getting about $1800 for the animal. The article said the packer would historically make about $400 per head for processing the animal, not $1400.
That's close enough for this kind of work, with your figures.
Local packer charges about $300.
Here in Texas, we have state meat inspection for custom kill packing companies. Problem is, USDA won't let you sell the packaged meat, either wholesale or retail.
If states would pass legislation that state raised meat could be slaughtered, state inspected, and sold within the state, that would jerk a knot in the tails of the meat mafia.
Actually the Texas inspected meat can be sold in state, just not cross state lines. Buy it all the time when we're down there.
Actually, it's a bit deeper than that, and way more complicated.
As I mentioned, a custom kill packing company cannot slaughter meat for retail.
Some state approved plants can slaughter for retail, and the plants not only have to meet USDA standards, but the one I was experienced with ,and had a good friend who was their meat inspector there, were actually slaughtering under USDA standards. The inspector himself worked under USDA regulations and stamped the slaughtered beef halves with the USDA stamp. I asked him how he could do that if he was a state MSA inspector, and he said the state upheld USDA standards, and after he qualified for USDA standard meat inspection, the plant was authorized to sell meat.
https://dshs.texas.gov/meat/grants/inspection.aspxMeat Safety Assurance in PHR 1
The PHR 1 Meat Safety Assurance program regulates 9 Texas inspected meat and poultry establishments. Texas inspected plants combine slaughter & processing of beef, swine, lamb, goats, and occasionally other species. Inspected facilities also produce beef and pork into products for wholesale distribution. There are inspected establishments in these cities: Amarillo, Boys Ranch, Lubbock, Post, Shamrock, Slaton, White Deer, and Wolfforth. "Texas Inspected and Passed" products are for "Intrastate Sales Only", and cannot be sold in commerce outside of Texas.
MSA regulates 11 custom exempt establishments. Custom exempt plants slaughter and process beef, swine, lamb, and goats without inspection. These products are marked "Not for Sale" and cannot be sold in commerce. Products derived from animals slaughtered without inspection must be returned to the owner of the animals for his/her personal use. CE plants are located in Amarillo, Earth, Hereford, Littlefield, Muleshoe, Perryton, Seminole, Texline, and Wellington.
MSA regulates 1 establishment in Amarillo through a cooperative agreement with the federal inspection system. This establishment is a slaughter and processing plant, primarily distributing beef, pork, and poultry products bearing the federal mark of inspection. Products bearing the federal mark of inspection can cross state lines into interstate commerce.
The Meat Safety Assurance workforce in PHR 1 consists of an MSA Program Veterinarian, one Inspector VI, one Inspector V, and 6 MSA Inspector IV(s). The Inspector IV(s) perform the daily inspection procedures in inspected establishments across the region. Three additional Inspector IV’s provide daily meat and poultry inspection to inspected establishments in Midland, Odessa, and Alpine.
https://dshs.texas.gov/region1/msa.shtmThat was a pretty rare operation as well. They slaughtered deer (Axis) for making retail orders of venison, and preparing jerky, smoked sausage, etc.
They had a USDA inspected mobile kill plant. They would take it on the ranches for processing the axis deer. Per federal law, the meat inspector had to witness all phases of slaughter, including the killing. Deer were killed at night with a spotlight and suppressed .308 with head shots.
They would load the deer into the mobile kill trailer, and the process would begin.
Might be why venison is so damned expensive in a restaurant.
State of Texas would not let them kill native deer. Only exotics, as it's against state law to sell regulated native wildlife.