Supermarket margins

kk.man

Bought an organic sirloin steak in Tesco (don't buy organic often). Beautiful steak and then I started to look at the packaging.
Cost me 6 euro and tbh it was worth it.
The meat weighed 213g.
Then I did my figures.
Thats €28.17 per kg. That s what has me boiling.

The farmer who killed this animal got probably 4.10/4.20 per kg and the Supermarket charges almost 7 times the price! I know there are high end verses low end cuts but this is taking the mick.

There is something very rotten in the state of Denmark.

It was killed and processed in ABP Cahir.

patsy_mccabe

Was in a butcher myself yesterday. Huge sirloin steaks, propably from a 400kg plus carcass. €29/kg they were. I was only killing time having a look around, but half tempted to get stuck into the butcher on what type of animal they ere etc.
We're slaving away for nothing. No other way to put it.

Odelay

patsy_mccabe wrote: »

Was in a butcher myself yesterday. Huge sirloin steaks, propably from a 400kg plus carcass. €29/kg they were. I was only killing time having a look around, but half tempted to get stuck into the butcher on what type of animal they ere etc.
We're slaving away for nothing. No other way to put it.

How many kgs of sirloin would be in a 400kg beast?

zell12

Same price in UK https://www.tesco.com/groceries/en-GB/products/252506569

TheChizler

Odelay wrote: »

How many kgs of sirloin would be in a 400kg beast?

This is important. Of course it will look bad if you're comparing the rate for one of the most highly sought after cuts with the rate for all cuts good and bad (is 400kg just usable meat or the weight of the whole thing out of interest?).

brightspark

Would it be an idea for farmers to get together and sell steaks themselves instead of via supermarkets. It would take a bit of cooperation but I guess it would mean the farmers could get a greater share of the retail price. They could call it a CO-OP...oops forgot they had them and then sold them for a lump sum, farmers of all people should understand that you reap what you sow.

patsy_mccabe

% weights of 280 Kg Bullock carcass

Fillet - 1.9%
Striploin - 4.5%
Topside - 6.5%
Silverside - 6.4%

Bone - 16.2%
Fat - 5.8%

Odelay

patsy_mccabe wrote: »

% weights of 280 Kg Bullock carcass

Fillet - 1.9%
Striploin - 4.5%
Topside - 6.5%
Silverside - 6.4%

Bone - 16.2%
Fat - 5.8%

What is the other 60% of it?

Odelay

It’s all a bit simplistic pricing sirloin.

Reminds me of this video.
https://m.youtube.com/watch?v=6A7bq1HFygs

patsy_mccabe

Odelay wrote: »

What is the other 60% of it?

You want me to list every single cut?:D

epfff

patsy_mccabe wrote: »

You want me to list every single cut?:D

Id be interested in ball park figures of rest bulk mice etc together

patsy_mccabe

Hard to quantify mince. Well you know yerself, could be from anywhere.
Here's the document, I got it from;

http://www.qsmbeefandlamb.co.uk/books/beef-yield-guide/index.html#12

Simmental.

I think the cost of goods would include wages, transport, advertising etc.

Grueller

Simmental. wrote: »

I think the cost of goods would include wages, transport, advertising etc.

They do for the farmer too

wrangler

epfff wrote: »

Id be interested in ball park figures of rest bulk mice etc together

That's the reason I keep repeating that BPM etc should process and sell their own beef for a couple of years, these spurious claims that are uttered are only back of the cigarette box efforts.
Often saw irish lamb carcases priced in Rungis meat market in Paris at the same price as we were getting at home, when I asked the agent that was with us how they did it he'd say that the Offall pays for the processing charge.
That was before BSE, and skins were £8 at the time, they're worthless now if they're salted and if they're not salted you're charged to dipose of, don't know what the position is now as regards offal paying for processing now

Butcher Boy

The poor butcher must make a pound too .

kk.man

wrangler wrote: »

That's the reason I keep repeating that BPM etc should process and sell their own beef for a couple of years, these spurious claims that are uttered are only back of the cigarette box efforts.
Often saw irish lamb carcases priced in Rungis meat market in Paris at the same price as we were getting at home, when I asked the agent that was with us how they did it he'd say that the Offall pays for the processing charge.
That was before BSE, and skins were £8 at the time, they're worthless now if they're salted and if they're not salted you're charged to dipose of, don't know what the position is now as regards offal paying for processing now

I totally agree with you but my point is the supermarket shelves are very very profitable for very little effort.

wrangler

kk.man wrote: »

I totally agree with you but my point is the supermarket shelves are very very profitable for very little effort.

Some supermarkets expect to be supplied for a month free of charge as Hello Money, rumored to be common with milk suppliers years ago,
I also know an independent supermarket that used to get an artic of breakfast cereals every Christmas, i'm sure he reached targets to achieve that but a feckin lorry load

Some agri merchants even stopped giving th'ould tin of biscuits, feckin house is full of flamin calenders

Water John

The cuts and amounts from a carcase were in the IFJ a few weeks ago. I think it was just under 100 steaks of various sorts plus other joints, brisket etc.
Does that make sense?

kk.man

wrangler wrote: »

Some supermarkets expect to be supplied for a month free of charge as Hello Money, rumored to be common with milk suppliers years ago,
I also know an independent supermarket that used to get an artic of breakfast cereals every Christmas, i'm sure he reached targets to achieve that but a feckin lorry load

Some agri merchants even stopped giving th'ould tin of biscuits, feckin house is full of flamin calenders

I have no doubt Larry would give six months credit to a large supermarket chain if it meant getting a big deal over the line.

Water John

My yarn. Sent some cattle to the butcher 2/3 weeks ago, not paid yet.
Anyway saw some meals in my local shop, supplied by this butcher. Each item priced at €4.75 or 3 for €12, €4 each. Took the 3 offer. One item was meatballs in pasta and sauce. Might even be one of my own animals.
The meal had 5 meatballs each one bite, just bigger than a marble. The five together wouldn't make a burger pattie. Possibly 100 grms meat.
You can be sure that meat wasn't steak. Quite tasty, but had to put on the sausages as well.

Suckler

kk.man wrote: »

I totally agree with you but my point is the supermarket shelves are very very profitable for very little effort.

Very little effort? There are huge amounts of overheads and expenses shops have to cover as well as the fact that the price on the steak doesn't guarantee they'll see a cent from it.

yosemitesam1

Suckler wrote: »

Very little effort? There are huge amounts of overheads and expenses shops have to cover as well as the fact that the price on the steak doesn't guarantee they'll see a cent from it.

They surely get over 40% of the final price, no idea on their costs but it would make the factory's margin tight.

Suckler

yosemitesam1 wrote: »

They surely get over 40% of the final price, no idea on their costs but it would make the factory's margin tight.

What I meant by not getting a cent is that there is always the possibility that it doesn't sell and has to be dumped.

Say my name

Suckler wrote: »

What I meant by not getting a cent is that there is always the possibility that it doesn't sell and has to be dumped.

The bigger supermarkets don't buy the stock they just charge a margin for having the stock put on the shelves by that brand or that wholesaler owner's staff.
The smaller retailers would be a different story.

Suckler

Say my name wrote: »

The bigger supermarkets don't buy the stock they just charge a margin for having the stock put on the shelves by that brand or that wholesaler owner's staff.
The smaller retailers would be a different story.

Granted for the big chains but the cost of same will be borne by someone and ultimately be reflected in the price.

farawaygrass

Met a couple at a farm event a few years back and they used to grow vegetables and supply a few supermarkets. The way it worked was they had a supply agreement to supply say 20 boxes of veg. But if them boxes sold out before the week was out they would get a phone call and had to make a delivery pretty quickly. If only 15 of the 20 boxes sold though they were expected to take the hit on the 5. They got out of the business in the end. Found it too difficult

Water John

To get the true figures we need the cuts and selling price. This gives the complete retail price, plus the fifth quarter. We also know the price the farmer gets.

patsy_mccabe

Water John wrote: »

To get the true figures we need the cuts and selling price. This gives the complete retail price, plus the fifth quarter. We also know the price the farmer gets.

Well, here's Tesco Round Roast at €6/kg. That will give you an idea of the price range.

https://www.tesco.ie/groceries/Product/Details/?id=291683189

Water John

That's a loss leader, so standard price of that cut is €12/kg.

lalababa

From various reports the price a farmer gets from the factory is at or just below the cost of production. All the beef rearing to finnishing farming methods profits are neutral or loss. Why is this?? Because Ireland produces too much beef and the producers only have one market and must sell. Also the BFP. keeps things rolling along, most have a off farm job and the farming is a chaperone food producing hobby.