Cost of Production for Meat

What counts as a cost in raising meat animals?

Begin with a list of every cost for one batch or one year. Include purchase or breeding costs, feed, hay or pasture upkeep, bedding, water systems, fencing, shelter, health care from a veterinarian, transport, processing, packaging, storage and sales costs. Add insurance, fees and a share of equipment and land costs.

Different species have different patterns. Fast-growing animals have short, intense cost periods, while slow-growing ones spread cost across seasons or years. Track costs by batch or by animal group so you can compare them.

• Animals or breeding stock
• Feed, hay and pasture upkeep
• Fencing, shelter and water
• Veterinary care and health management
• Processing, packaging and freezer storage

Why is processing such a large piece?

Most small farms use an outside processor, and processing rules depend on how you plan to sell. Meat sold to the public generally has to be processed under rules set by federal or state authorities, while other arrangements apply to animals processed for the owner's own use. These rules vary by state and by species.

Before you buy animals, call your state department of agriculture and a few processors. Ask what rules apply to your sales plan, what the booking lead time is, how the processor charges, what cuts and packaging you can choose and how you must transport the animal. Some processors book far ahead, so schedule early.

Keep a note of every phone call, including the date, the person and what they said. Rules and processor policies change, and your notes show what you relied on when you made your plan.

How do I calculate cost per pound?

Add all costs for the batch, then divide by pounds of meat you will actually have to sell, not by live weight. The difference between live weight and packaged meat depends on species, how the animal was raised and how it was cut. Ask your processor for the typical result and then check it against your own records.

Include losses. An animal that dies, does not finish or is not sellable still had feed and care put into it, and that cost must be carried by the others.

What about health, losses and welfare?

Animals get sick and sometimes die. Warning signs such as poor appetite, lameness, labored breathing, bloating, diarrhea or isolation from the group call for prompt veterinary advice. Disease reporting and biosecurity rules vary, so ask your state veterinarian or extension office what applies.

Build a realistic loss rate from your own experience and from advice of local farmers, and keep a veterinary relationship in place before you have an emergency. Veterinary costs belong in the budget as a category.

Keep a written plan for what you will do if an animal is injured or sick, including who you will call and how you will transport it. Having the plan before the emergency saves time and suffering.

How do I count labor and time?

Daily chores, moving animals or fences, hauling feed and water, handling at loading time, record keeping, marketing and delivery all take time. Track hours for a few weeks in each season.

Selling meat takes time too: taking orders, answering questions, coordinating pickup and handling payments. Include it. Many farms find that sales and customer service are as much work as the animals.

Freezer space, electricity and the time spent sorting and delivering orders are easy to forget, yet they belong in the cost of every pound.

How do I compare my price with the market?

Visit local butchers, grocery stores, farmers markets and farm websites to see what similar products sell for. Compare by cut and quality, and note that some buyers purchase whole, half or quarter animals while others buy individual cuts. Each channel has different costs and different prices.

If your cost per pound is higher than the market will bear, look at feed efficiency, losses, processing choices and labor. If it is lower, consider whether you are leaving money on the table.

Think about price per cut as well as the average. Some cuts sell quickly and others sit in the freezer, so how you package and promote the slow ones affects your real return.

How do I decide whether to continue?

Keep full records for the first batch and compare actual results with your plan. Decide what to repeat, change or stop. A small trial teaches you more than a large commitment made on assumptions.

Ask your extension livestock specialist for enterprise budgets for your species and region, and adjust them to your own prices and choices.

Last reviewed: November 12, 2026. Written by the Homestead & Small Farm Editorial Team. See our editorial policy.