American Lamb Resource Center
(Previously published online: American Lamb Resource Center – Pricing Calculator)
Recently,
I’ve had several conversations with lamb producers that are interested in adding value to their flock. As an example, to better connect them with their clientele, shepherds have investigated selling whole or half lamb carcasses or individual cuts. As this business venture continues to gain traction, I always encourage producers to investigate all marketing opportunities to ensure that they are getting the most out of their labors. The most common question I get when discussing this topic is: “How should I price my lamb”? Unfortunately, I can’t be the one to answer that as each operation is different in terms of overhead expenditures and operating costs. However, there is a tool available to help you in getting a fair price for your efforts. Thanks to the American Lamb Board, shepherds have a pricing calculator that can be used to set a fair market price for your meat products produced. This pricing tool also takes into consideration the live market value of your lamb to ensure that you added efforts of securing a harvest slot, storing meat, advertising, and etc. out weighs the value you would receive on the open market, thus allowing for added value of your end product.
For those interested in using this tool, please see the text provided below from the American Lamb Board. Question upon how to use this tool or how to interpret the results, let me know – I would be more than happy to help!
Pricing lamb – whether from simple or complex cutting instructions – can be a challenge. Tracking lamb produced over time at busy local lockers can also be a challenge. This Direct Marketing Lamb Business Management Tool (DMLBMT) is intended to help the direct marketer monitor productions and price product.
This DMLBMT is comprised of various components:
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Yield Collection Template (which can also serve as an order sheet for your processor)
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Yield Tracking Template
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Cost/Margin/Markup Worksheet
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Pricing/Cutout Calculator
The following will offer a chronological explanation of how to use the various components of this tool, which will require Mircosoft Excel. Downloads for both the Pricing Calculator Instructions and Pricing Calculator Excel fie can be found at https://www.lambresourcecenter.com/pricing-calculator.