Grass Fed Beef Business Plan

 

Objective:

  • Build a program that is self sufficient and profitable.
  • Produce a small variety of healthier, holistically managed, world class, certified grass fed beef. 
  • Promote the working cattle portion of the Ranch to increase the western feel and flavor of the ranch to visitors and guests.

Certified Grass Fed Beef: 

To be a certified grass fed program we have to follow a list of simple rules, including: 

  • Your animals were fed a lifetime diet of 100% forage
  • Your animals were raised on pasture, not in confinement
  • Your animals were never treated with hormones or antibiotics

We have to follow these rules, pay a yearly $250 membership, and a $1 per head charge for each cow, and then they will allow us to use their logo of certified grass fed on all of our product.

Certified Organic:

The rules for being certified organic are very similar to the certified grass fed:

  • The USDA organic seal verifies that producers met animal health and welfare standards, did not use antibiotics or growth hormones, used 100% organic feed, and provided animals with access to the outdoors.

The cost is not clear. The USDA site says that the cost may vary from a couple hundred dollars to a few thousand depending on the size and other details of the operation.


Wagyu Beef Program:

A cow only has to be 50% Wagyu to be marketed as Wagyu Beef according to todays USDA standards.

I would recommend buying Brangus, or Angus mothers, artificially inseminate them with a straw of full blood Wagyu Bull semen, and then we would have a Wagyu beef. A straw of semen from a premium bull is only $60/straw.

Recommended # of Cattle to start with: 4
Cost per cow:  $2,000 - $2,700
Projected gross income per calf(at current market standards): $3,500 - $7,500

According to Chisolm Cattle in Wimberly Texas, a Wagyu carcass is bringing between $3,500 and $4,500. That is feeder cattle prices, if we are able to market it as certified organic and grass fed, we can get a even more premium price for them.


Brangus Beef Program:

These are very tough and disease resistant animal, making them an optimal choice for a organic program with no antibiotics.

Recommended # of cattle to start with: 4
Cost per cow: $2,000 to $2,700 
Projected gross income per calf
(at current market standards): $1,200 - $3,000 
These would be a cheaper alternative for our guests and other customers for the grass fed organic beef.


Longhorn Beef Program: 

These are also very tough and disease resistant animal.

Recommended # of cattle to start with: 4
Cost per cow: $1,200 to $2,000 
Projected gross income per calf
(at current market standards): $800 - $2,600
These cattle are even cheaper than the Brangus. This would be marketed to the health conscientious consumers because of the lean quality.