Not Going The Extra Mile - A Price Comparison
By Rosewood Farm, Apr 1 2017 11:40PM
It's not so long ago that I blogged about Sainsbury’s and how if they really want people to eat less meat, they should stop selling it. Well, this week I decided to compare our prices with Tesco, as we’ve always strived to keep in line with the cost of the supermarket mid-range level. However, I stumbled in the low-end section and was utterly shocked by what I saw!
Here at Rosewood our prices are maintained at a level that is fair - we don’t want to charge too much and exclude people on a low income from eating good food. Nor do we want to charge too little so that we have to cut corners and let down our animals or destroy the environment in the process. Our Grassfed Dexter beef mince costs £9.20 per kg, and for that price we make a lot of promises. Our prices also include the cost of delivery so they are bound to be a little more but I don’t just want to compare Tesco with Rosewood, as when it comes to tasty beef, there is no comparison.
You will likely have heard all about Tesco and the controversy over their fake farms scandal, branding generic produce as if it came from a single, identifiable source has increased their profits. Well, they got away with it and are still selling products such as Boswell Farms “beef” mince (pictured below). The price looks amazing at just £3.38 per kg, and if you know anything about cattle pricing it’s even more unbelievable.
In days gone by supermarkets, wholesalers and butchers all had to compete for the best animals available at live auction markets. The cattle taken to market could be sold on the day or brought home if they didn’t make enough money, then returned the following week. Numerous factors changed this, a big one being ‘biosecurity’ - there were concerns over disease being spread between animals from different farms when they met at market, with unsold animals returning to the farm.
The supermarkets seized upon this and ‘sold’ it as an advantage to the farmer if his/her cattle could only move onto to an abattoir and avoid the risk of bringing back disease. Of course it also meant that the farmer has lost market discretion - you must accept the price, whatever it may be, and therefore the decision to sell must be made based upon the market prices from the previous week, which made selling even more of a gamble.
To take the gamble out of selling the supermarkets offered an olive branch - sell direct to them, delivering the animals to the supermarkets own abattoirs and you will receive a pre-determined price, providing the animals were of the right ‘specification’ (see below). The trouble was that the price offered was based upon the ‘market price’ and with direct contracts supermarkets no longer had to bid at the auctions. With fewer buyers available at the market, the price reduced further as at the same time supermarkets were outcompeting traditional butchers who couldn’t offer the cling-wrapped all-under-one-roof convenient shopping experience that shoppers now demanded.
Pricing for cattle that were no longer bought and sold while still alive had to be by the ‘deadweight’. That is the price for the carcass only, minus the head, feet, skin and insides, etc. which represents 45 - 50% of the live bodyweight. The carcass specification is determined by its on its conformation (shape) and fatness, with higher prices paid for animals that better match the buyer's demands. The deadweight system eliminates risk for the buyers as they are no longer have to pay for the bits they don’t want, although the price is usually higher than the ‘liveweight’ price to compensate.
As you can see from the current average cattle pricing, taken from Farmers Weekly today (02/04/2017) the highest price paid (the one for carcasses that will yield the most saleable weight for the supermarket) is 324p per kg, or in other words just 14p less than ‘Boswell Farms’ beef mince. That’s not to say that Tesco has made 14p per kg, as they will have to pay to run the abattoir, package and transport the product. Also, a carcass still contains a lot of extra weight in the form of bone and excess fat, which can represent a third of the deadweight giving an actual cost of 486p per kg of saleable meat.
At that price what Tesco, or ‘Boswell Farms’, are selling must be, essentially, a waste product of meat processing. The online information states that the animal was slaughtered in United Kingdom, Ireland (one of the two, I guess) and by investigating the UK code (5416) it turns out that the Hilton Food Group plc in Cambridgeshire was responsible for mincing it. We have no idea where exactly the animal was born or raised, where it was slaughtered or how far it travelled. All we do know is that the meat has travelled at least 530 miles before it reaches the York Tesco store. Even if you live in Penzance and order from Rosewood you still save at least 342 food miles!
Pricing is a little more complicated, as some cuts are more expensive than others, but mince is also the cut that requires the most work to produce, de-boning, cutting and mincing. It is the most convenient way to cook and eat grassfed beef though, and remains one of our most popular choicess. The advantage of eating beef from Rosewood Farm is that you know that it was grown in the Lower Derwent Valley in Yorkshire. If you check out the slaughter/cutting code on every pack we sell, you can also trace it back to the abattoir, which you will find is also located in the LDV. We include the individual animal ID code too, so you can get in touch with us for the full life history of the animal, including which fields it grazed in, for total peace of mind.