Grass-fed and Organic Beef: Production Costs and Breakeven Market Prices, 2008 and 2009

Date
2012-01-01
Authors
Schwab, Denise
Smith, Margaret
Sellers, H.
Munsch, Jim
Paine, Laura
Gompert, Terry
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Abstract

Higher prices offered for grass-fed and organic grassfed beef appear attractive, but production costs, in many cases, are also higher than for conventional beef. With accurate costs of grass-fed beef production beef producers and potential producers can use these tools to make better informed decisions about entering this specialty beef production stream, establishing breakeven selling prices and determining the necessary selling price for economic sustainability of the enterprise. These data suggest that in in 2008 and 2009, after adjustments are made for cull cow sales, these producers would need to receive $209/hundredweight of live market animal produced to breakeven.

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