If you've ever wondered about meat prices and why they seem to be all over the place, I've written some information here to help break that down.
Meat prices in Canada can vary depending on several factors such as the type of meat, the location, and the supply and demand dynamics of the market. Some types of meat, like beef, tend to be more expensive compared to others like poultry. This is due to several factors including the cost of production, transportation, and processing.
Additionally, meat prices in urban areas tend to be higher compared to rural areas, as there is often more demand for meat in cities, and the cost of transportation and distribution is higher.
It's also important to note that the price of meat can also be influenced by global market conditions and government policies. For example, changes in import and export policies, or shifts in consumer demand for different types of meat can all have an impact on meat prices across Canada.
If you've had an interest in saving money on your budget, or just interested in being able to access a supply of high quality meat, you may have considered buying a whole quantity processed beef or pork. A whole quantity is the entire animal once it has been butchered, whereas a half is generally the animal split along its spine to a left and right side. Generally a half will contain exactly one half of all the available cuts, with the exception of certain items, such as the pigs head (if included), as our pigs are bred to only have one head. Thankfully, consumer demand has not encouraged the breeding of animals to promote two heads as of yet.
When purchasing an animal for consumption, there are often different terms used by the farmer, abattoir (slaughterhouse), or butcher. The terms "live weight", "hanging weight", and "net weight" are used to describe the weight of an animal or cut of meat at different stages of the processing and packaging process.
When animals are sold from one farm to another or by auction, we pay based on the "live weight". A weight measurement taken at that time is called the "live weight", which refers to the weight of an animal as it is, before it is processed for meat. This weight includes the weight of the bones, organs, and other inedible parts that will not be used for food.
When an animal is processed, it is sent to the abattoir to be humanely dispatched. Once cleaned and hung, all the inedible parts, such as the head, feet, and internal organs are removed. A weight measurement is taken at this time and this is called the "hanging weight". This weight is often used as a standard measure of the weight of an animal for pricing and processing purposes. At this stage, the animal still has a significant "water" weight as it has not drained excess blood.
Net weight refers to the weight of the meat after it has been processed and packaged for sale. This weight includes only the edible portion of the meat, and excludes any additional bones or fat. The net weight is what consumers typically purchase and pay for when buying meat at a grocery store or butcher shop.
It's important to note that the difference between live weight and hanging weight can be significant, and can vary greatly depending on the type of animal and the processing method used. The difference between hanging weight and net weight is usually smaller, but still varies based on factors such as the amount of fat and bones in the cuts of meat and the packaging method used.
For instance, a beef cow with a live weight of 1000 pounds will generally result in a 630 pound hanging weight (63%). This would be the weight that we pay based on for our bulk retail sales. This 630 pound hanging weight would generally be about 500 pounds of bone-in net product, or about 330 pounds if all the cuts were done boneless.
A whole of beef is generally broken down as follows:
35-40% ground beef (generally around 80% lean)
20-30% whole roasts
20-30% steaks
6-10% whole cuts (such as brisket)
6-10% bones and offal (soup bones and organs)
As of 2023, our ground beef retail sale price is $6.50 per pound. Our bulk price on a whole or portion of a cow is between $9 to $10 per pound. If we process our beef for their highest valued and consumer demanded steaks, then a processed beef cow is generally about 40% ground beef.
The cost for us to purchase beef generally results in us selling our ground beef at a loss so that we can have access to a better supply of high quality retail beef cuts, such as Ribeye and Porterhouse steaks. Our Sirloin Tip roasts (which are generally considered a low value grocery store roast) are amazingly tender and juicy when properly prepared for the family table.