Necessary Price Increase
Finishing Out on Rye Grass
At Cross Creek Cattle Company, we have always wanted to keep our grass fed beef affordable for the average American family. For years, we have raised grass fed beef for our own family. Even though we never gave hormones or unnecessary antibiotics to our herd, it only made sense that would reserve the healthiest beef for our table. Therefore, the calves reserved for our consumption ate grass and hay.
Our grass fed business came into existence with the realization that there was a demand for this healthy beef. Allow me to paraphrase what I said in my Think Natural interview with Dr. Ward Bond, “We realized that not everyone had acreage on which to raise their own beef and Cross Creek Cattle Company could provide grass fed beef, the kind we raised for our own consumption, to the public.”
The rest is history. Every year we sell more and more beef. Our customer base is growing and spreading all over the state of Texas. Our ranch’s name is getting out to the public by word of mouth, by this blog, and by our interviews in magazines, newspapers, and a television show.
Throughout our years in this business, we have struggled to stay affordable to the typical family. We have kept our prices at $3.50 per pound based on hanging carcass weight. Even through the worst drought in recorded history, we stuck to our price despite the fact that everything was costing us more money. For example, the price of hay went through the roof.
We never expected to make millions on grass fed beef sales, but we did expect to make some profit. Unfortunately, we are not even breaking even. Therefore, we are being forced to raise our price per pound effective January 1, 2012. We hope that our customers will not begrudge us this change; it is necessary if we are going to continue to offer grass fed beef to the public.
As of January 1, 2012, we will be offering our grass fed beef for $4.00 a pound based on hanging carcass weight. It will be the same great grass fed beef sold in the same manner as before. We still offer a split quarter, half, or whole options. The former receive standard cuts. The cuts for a half and whole orders can be fully customized based on the customer’s needs and desires. We will still be using K&C Processing in Navasota, Texas. The only that has changed is a necessary price increase.
Tags: breaking even, grass fed beef prices, necessary price increase, Think Natural
December 31st, 2011 at 12:40 pm
It seems extremely reasonable to me! We calculated the cost of our pastured pork, including curing and smoking our own hams (minimal cost), and it came out to $2.83/lb. They didn’t have to be kept near as long as a steer, and we didn’t have to feed them hay. Considering that we did all our own work to get them at that price, it hardly seems unreasonable for someone who didn’t have to do any work to get beef for $4.00/lb!
January 5th, 2012 at 7:46 pm
Thank you, Susan. I love how you calculated the cost of your pastured pork. Nothing in life is free.
Lara
January 26th, 2012 at 4:03 pm
[...] Cross Creek Cattle Company had to raise our price per pound from $3.50 to $4.00 a pound based on hanging carcass weight. In order to stay in the grass fed business, we had to increase our price in order to make some profit on the sale of our beef. It was a decision that we did not take lightly, and it is one that we stand by. For more information on the particular reasons, please read “Necessary Price Increase.” [...]