Economics

Selling lamb and goat products starts with pricing. Setting a price that covers cost and makes a profit is key to your success. 

josh-appel-NeTPASr-bmQ-unsplash.jpg

Pricing

Local, Kentucky Proud products demand a price premium, due to economies of scale.  A Cooperative Extension Agriculture Economist and/or your meat processor can help determining a price for your retail cuts.  However, the first question they are going to ask is “what is your breakeven price”.    Most farmers have not thought about this aspect of the farm.  And when thinking/calculating a breakeven price, remember the cost of your time, processing costs, transportation, etc. 

               

Once you have a price, realize that consumers may be willing to pay a premium for the more desirable cuts from the loin and rack, but may not want to pay a premium for roasts and ground product.  Other direct marketers have had success selling bundles, rather than individual cuts.  For example, a $50 bundle may have a few loin chops, a couple roasts, and some ground product.  This will help prevent a surplus of less desirable cuts.

I'm a paragraph. Click here to add your own text and edit me. It's easy.

Kentucky Sheep and Goat Development Office

PO Box 4709

Frankfort, KY 40604

502-682-7780

sharon@kysheepandgoat.org