OUR NEW PRICING MODEL!
EFFECTIVE 2026:
At our Ranch Open House this past summer, Carl shared from the hay wagon the challenges of running a small cattle business in today’s unpredictable beef market. Rising feed, processing, and transportation costs have made it difficult to plan and price fairly, especially in this volatile Trump 2.0 era. In fact, ..."for the month of September 2025, Canadian Beef retail prices were reported at $11.77/lb ($25.90/kg). Since the start of the year, beef retail prices are up 17%..." (Beef Farmers of Ontario - Daily Market Information Report, Wednesday November 12, 2025).
How do you price your beef in this kind of market? One idea that stood out from our Open House: why not anchor our price to something everyone can understand? Our longtime customers, the Chou Family, helped put it perfectly: price it like the “Prime + interest rate” approach: connect our beef pricing to a clear, familiar benchmark. We’re proud to take their insight to heart and introduce the Chou Index — our new pricing model designed to bring transparency, consistency, and fairness to how we do business.
Our price per pound will be the lower of:
$7.50/lb (our ceiling price)
OR
The Beef Farmers of Ontario (BFO) Average Rail Grade Price for Heifers plus $2.00 / lb
If you select:
At our Ranch Open House this past summer, Carl shared from the hay wagon the challenges of running a small cattle business in today’s unpredictable beef market. Rising feed, processing, and transportation costs have made it difficult to plan and price fairly, especially in this volatile Trump 2.0 era. In fact, ..."for the month of September 2025, Canadian Beef retail prices were reported at $11.77/lb ($25.90/kg). Since the start of the year, beef retail prices are up 17%..." (Beef Farmers of Ontario - Daily Market Information Report, Wednesday November 12, 2025).
How do you price your beef in this kind of market? One idea that stood out from our Open House: why not anchor our price to something everyone can understand? Our longtime customers, the Chou Family, helped put it perfectly: price it like the “Prime + interest rate” approach: connect our beef pricing to a clear, familiar benchmark. We’re proud to take their insight to heart and introduce the Chou Index — our new pricing model designed to bring transparency, consistency, and fairness to how we do business.
Our price per pound will be the lower of:
$7.50/lb (our ceiling price)
OR
The Beef Farmers of Ontario (BFO) Average Rail Grade Price for Heifers plus $2.00 / lb
If you select:
- MAY delivery, your price will be the January Average Rail Grade Price plus $2.00 / lb
- AUGUST delivery, your price will be the April Average Rail Grade Price plus $2.00 / lb
- OCTOBER delivery, your price will be the July Average Rail Grade Price plus $2.00 / lb
- May Delivery: January BFO Price: 4.49/lb PVR Price = 6.49/lb
- August Delivery: April BFO Price: 4.78/lb PVR Price = 6.78/lb
- October Delivery: July BFO Price: 5.24/lb PVR Price 7.24/lb
