# How do you price your butcher lambs?



## Carol K (May 10, 2002)

Not that I have any to sell (yet), but was trying to figure out how you price butcher lambs? I know much will depend on the area you live in, but is there a method you use? Would it depend on market prices for feeders? I am confused to say the least. I see some priced at hanging weight and some at live weight. 
I'm just interested in selling the whole carcass not pieces or halves. So how do you price yours?
Thanks

Carol K


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## Bearfootfarm (Jul 13, 2006)

Are you set up to actually weigh each one?
Will they already be butchered?

If not, just decide how much you need to get to make a little money, and charge that amount as your minimum.

If you're selling live lambs, you can vary the price up or down depending on the size.

Remember though, when you quote a price, you can always choose to LOWER it, but you can't raise it. Some customers willl want to "haggle"


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## LibertyWool (Oct 23, 2008)

I sell mine live at a set price. I prefer to sell at weaning instead of finishing them (more profit, less work), but when I do I still use a set price. I have friends that sell by the hanging weight. Some include the butcher fee in that price and some do not. I don't like doing that because you end up with a lot of questions from people who don't understand the different weights (live weight, hanging weight, package weight). Some people assume that hanging weight is package weight. I find that it is hard to explain to someone that is used to buying meat in the store that they paid for 50 lbs hanging weight, but only received 35 lbs of meat because they had everything de-boned. Yea, they only paid 175 bucks ($3.50 hanging weight), but they feel taken advantage of, even thought they only paid $5.00/lb package weight. Try and buy chops for $5.00 in the supermarket.... LOL


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## Carol K (May 10, 2002)

Libertywool, how do you determine your sale price, do you use Market prices, then weigh them or.....?? I certainly agree that customers have issues understanding differing weights. Pointing out the end price with the shop price is a good idea.

Bearfoot, don't have a scale yet, but have access to one, but would be a hassle, if all works well with the sheep I will buy one, so usefull for many things, lol including my own curiosity, Its hard for me as a newbie to look at a lamb and guess a weight right now, I'm sure experience helps with that.

Carol K


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## LibertyWool (Oct 23, 2008)

I do look at a few things, but am still too low on my prices. Lamb prices have gone up nationally a lot the last two years, and I've not raised mine much. I do watch the ASI reported prices and that is why I know I'm too low (I also know just about how much mine weigh on average, so it is easy to ballpark it). I also watch the local adds and I tend to be in the "normal" range here. You get some people that think their sheep are made of gold and some that think they are not worth anything. I try to shoot for the middle. Time of year also matters a lot here. Advertised sheep prices are dropping as we head towards winter (people downsizing their flocks before winter).

This year I did two prices, one for repeat customers and one for new customers. Since I have a flat price per animal, it doesn't matter how much it weights, they are just a set price. For older animals, I check with a friend that goes to the auction and I use that to set my prices on my culls.


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## wendle (Feb 22, 2006)

Live weight, and I check the sale barn prices the week before. I have a hanging scale to weigh the lambs.


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## Carol K (May 10, 2002)

Thanks all, now I have something to work on.

Carol


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## LibertyWool (Oct 23, 2008)

Here is a link to an article that you might find interesting about current market prices:

http://sheepindustrynews.org/?page=site/display_articles&nav_id=37f6d7440fcc0236302b14fa2c8705f9&PHPSESSID=nmnuv8l4ckg2efe3c9ett9ttg3


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## goodhors (Sep 6, 2011)

Are you selling all the lambs as ready for the butcher shop or selling to let people raise their own? We paid a per-head price for our weaned lambs, and it was not cheap because they were aimed at the show market.

I am asking because I wondered how much you figure as a profit, after your expenses? And do you figure all your expenses? Pasture grazing would have to be replaced with purchased hay if you didn't have the land. So do you give pasture a dollar value in your figuring? Do you add grain to finish or just let lambs go on the pasture/hay forage feeds?

What kind of weights are your "finished" lambs for sale?

I am concerned with costs, because things you buy cut into any profit margin at sale time for the 4-H kids. We always wanted DD to do this to ACTUALLY make some profit, so I cut a lot of corners compared to other kids that fed show lambs other ways. We both reached the goal weights, but we had to do other things like more exercise, to get the "shapely" figure, hard finish of body, desired in the ring. When I was a kid with animals, we had to track everything as a learning experience, to see where the costs went. Drilled into us that animal ownership NEEDS to know what the REAL COST of things was. This was horses and market rabbits for me. Had to show receipts, work trades for things or bartering to get items. The lesson was to not lie to ourselves, see where the $$ go. Labor is worth money, trading one item for another is worth money, so THINK about it all, to know what to sell things for. Had a hard bunch for Leaders and Judges then! They did line by line thru our records, asked us lots of questions, before giving our grade and ribbons. Then 4-H kid was expected to "be prepared" and know the answers, speak confidently. Locally, animal record keeping is a seperate class to enter, with few entries. Kids are supported by parents, do not truly know what it cost to raise their project animals. 

I am wondering it you folks are figuring your sale prices with everything involved, shots, feed, cost of keeping the adults to produce lambs, and making money doing it.

I saw REALLY high lamb prices at Fair, better than ever for "just average" sale lambs, not only the Grand and Reserve lambs. One Fair was about $3.75 the pound average, with lots higher. The other was about $2.50 the pound for lowest, but many at $4. When a couple years ago, prices were $1 the pound!! This was more than one Fair, so could be lamb prices are higher locally or we have VERY NICE buyers supporting the kids!

I almost never see lamb for sale in the local paper advertising. A couple folks sell reserved lambs if you order at the Farmer's Market. However for our family, those lambs are small breed animals, so the per pound price would be rather steep after getting it processed. We did end up buying at a Fair, but had to take a pen of two. Our extended family will be getting "lamby gifts" for the Holidays, way too much quantity of meat for us! 

Anyway, I was just curious if you actually turn much of a profit with lamb selling, after all the expenses. Or just selling lambs keeps you from being over-run while you enjoy the mature sheep for wool or to keep the place mowed. We paid $150 each, for the weaner lambs weighing about 40 pounds, about 3 months old. They had been fed a good pellet diet for an excellent start, were good size meat breed lambs, who gained well for us. I expect the shepherd had a lot into the lambs with registered stock, good feed. I would reasonably expect them to be 140 pounds in August, and heavier by Sept to be processed, which we have done for our freezer meat. Even with losing 1/3 to waste, still leaves a lot of meat in good size pieces. 

Just the thought of putting in another 4 months feed time after purchase, selling them off the farm for $175 and ending up in the hole profit-wise, would be enough to put me off any lamb raising!


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## LibertyWool (Oct 23, 2008)

Yes, I do track all my expenses. I do not count my time. I also do file a Schedule F, so like any business, I track income, expenses, assets and depreciation. There are also some tax advantages, especially when starting out, that you can take advantage of, like Section 179 depreciation. My largest yearly expenses are diesel and grain. I do include all medications, vet bills, and maintenance on my farm equipment. I do harvest my own hay.

Unless you are renting pasture you can not deduct a set rate for pasture, but you can deduct taxes paid on pasture land (or other expenses related to pasture management like reseeding, applying lime, etc). At least that is my understanding of the IRS guidelines.

Now, I'm not getting rich raising lambs, but I'm not going into the poor house either. I'm sure there are better business men and women out there that are more profitable, but I'm actually very happy with the product that I'm producing.

You also illustrated the reason I like to sell feeder lambs instead of slaughter lambs. It costs me an extra $14.40 in feed costs to raise a lamb from 3 months to 6 months, but I'm only selling that lamb for an extra $20.00. That is a lot more work for $5.60, so I would much rather sell the feeder lamb.


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## Carol K (May 10, 2002)

Its great to hear the way people do stuff, it makes so much sense for LW to sell feeders as her costs for that time are just not worth it, reading stuff like this really helps, I thank you.
It is my intention to build my flock up to hmmmm maybe 20 + ewes, I want to start small, learn as I go etc. Right now I am tracking every cost I have for my sheep, and always will as I also do scedule F. My intention is to grass feed, then hay, and maybe if needed alfalfa pellets over the winter or when needed. I am lucky to have an over abundance of grass in the summer and I buy hay in the winter. I love the sheep but I am not in it to lose money either.

Carol K


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## lambs.are.cute (Aug 15, 2010)

I usually just guess on size and sell it on that and current market price. This year two of my lambs weren't sold because I was "price gouging" because the price had gone up from last year. Those two lambs (my smallest) brought in 100 extra when they were sold at action. 

I raise out my lambs because it costs me $10 and I earned $120 for keeping. I also have to move the ewes around so why not the lambs? And I would have had to mow my pasture.


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## goodhors (Sep 6, 2011)

Thank you for the information about your lamb operations. Glad to hear folks are doing things in a business-like manner to be able to keep going. So MANY folks never pay themselves or figure in the details, so they are actually losing money. You sound well informed and working things to actually make money to keep growing and improving.

Hope the folks keep shopping at your farms for lambs! Better to be turning them away with being sold out, than having too many lambs you can't sell for a good price.


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## houndlover (Feb 20, 2009)

I keep track of how much they cost to raise. I consider what it costs to keep my ewes and ram also. I look at what the local auction is selling lambs at, and I compare it to the regional market report. I check craigslist. And in the end, if they aren't selling for more than what I have into them, I put them in my own freezer.


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