DES MOINES, Iowa — Beef prices continue to rise in the U.S. with ground beef averaging $6.25 in July. That’s the from the latest data of the U.S. Bureau of Labor Statistics, so that’s up $0.75 from that time last year.
Ground beef is just one cut of beef as an example, but prices have gone up all across the board for beef.
For families that like a variety of cuts of beef, buying in bulk may be a good investment.
Custom local beef businesses sell quarter, half or full beef, like Maxwell Custom Beef in Des Moines.
“It’s a lot more on the upfront cost, but you end up saving in the long run, especially with ground beef crossing prices that we’ve never seen before,” Maxwell Custom Beef owner Tucker Maxwell said. “You can save by buying in bulk, buying directly from a farmer, especially with Brazil outpacing the U.S. It’s one of those things where people are wanting to know a lot more of where their beef is coming from.”
So the average price of a quarter beef is around $1,000, half is around $2,000 and a full is $3,800. Maxwell says about 30% of what you get is ground beef, but they have a variety of cuts packages depending on what you like.
“When you come in here, it’s just a flat rate across the board. So out the door, it’s probably $5 a pound. It’s about $3.80 to the producer and then $1.25 to us,” he said. “Whereas at the grocery store, you might be paying $6.50 to $7.00 for ground beef and then $24 a pound for ribeye or New York strip, whereas you come here, that set price that you pay $5 to $6 hanging, and it is going to be the set price for all cuts.”
Another benefit of buying from a local shop is you get local meat. Maxwell said his beef comes from Central Iowa farmers.
“People are wanting to know a lot more of where their beef is coming from. Beef might be made in the U.S., but it was raised overseas,” he said “So if they can connect with a local farmer, then they would get that certainty that what they’re eating and what they’re feeding their families is a lot better or a lot more consistent than what they might find at the grocery store.”
It’s hard to save money if you don’t have money upfront. $1,000+ for beef is a lot of money, but there are options for that.
“A lot of producers do payment plans. A lot of people, if they get a full beef, they’ll split it with their family. A lot of friends will decide that they’re going to split a half or a full beef and then just kind of divvy it up amongst themselves,” Maxwell said. “Usually freezer beef will last a year and get you through the winter. And most people that stop in only see me once a year. So it tends to work out.”
So, why are beef prices so high?
“For Iowa farmers, drought plays a little into it. Corn prices over the last few years have always fluctuated. A lot of it’s got to do with, four or five years ago, cattle were at an all-time low,” he said. “And now they’re at an all-time high. A lot of it’s got to do with packers just really driving total weight they wanted, instead of putting all the time and effort into feeding their animals, then cash in right away.”
The meat processing facility where Maxwell Custom Beef operates in has actually been around since 1869. It just underwent some new ownership in the last six months with Maxwell taking over. To learn more about Maxwell Custom Beef visit their website.
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