CROPP Beef Pool Pay Price Schedule
June 15, 2008
All prices are on the hanging weight for members of CROPP Cooperative.
USDA Choice 1-4 $2.20/lb.
USDA Choice 5 $2.05/lb.
USDA High Select 1-3 $1.95/lb.
USDA High Select 4-5 $1.85/lb.
USDA Low Select 1-3 $1.80/Ib.
USDA Low Select 4-5 $1.70/Ib.
Young Bull (Non-service) $1.25/lb.
Standard (Base) $1.35/lb. $.10 Premium (High Yielding) $.10 Deduct (Low Yielding)
Cull Cow (Beef & Dairy Base) $1.10/lb. $.07 Premium (High Yielding) $.05 Deduct (Low Yielding)
Guaranteed Organic Premium over Conventional Pricing
Given the current high conventional cattle prices, CROPP has instituted a policy that will guarantee a $.10/lb. premium over conventional pricing for all categories of cattle. If the 3-week rolling average of the conventional pay price is greater than or equal to the CROPP Beef Pay Price, then CROPP will match the conventional price AND pay the organic premium of $.10/lb. If the 3-week rolling average of the conventional pay price is within $.10/lb. of the CROPP pay price, then CROPP will pay the amount necessary to achieve a $.10/lb. premium over conventional.
Example 1: If the 3-week rolling average Cull Cow price is $1.16/lb., then CROPP will match the conventional price AND pay a $0.10/lb. premium over conventional, yielding a farmer pay price of $1.26/lb.
Example 2: If the 3-week rolling average Cull Cow price is $1.08/lb., then CROPP will pay a $0.10/lb. premium over conventional, yielding a farmer pay price of $1.18/lb.
Midwest Regional Pricing
For cattle slaughtered in the Midwest, choice grade conventional prices are tracked according to the USDA 5 Area Weekly Average (http://www.ams.usda.gov/LSMNpubs/PDF_Weekly/WCBS.pdf). All other grades are tracked using weekly prices reported to CROPP by NFO.
California/West Coast Regional Cull Cow Pricing
For cull cows slaughtered in California, conventional pay prices are tracked according to the prices reported by Newman Livestock, Inc., Newman, CA.
