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The Beef Exchange

The Beef Exchange specializes in lowering the price of beef. High prices are due to waste in the beef supply chain. Beef Exchanges work to provide beef for the lowest possible cost. Beef Exchanges are owned and operated by its customers. Reducing waste creates specialization and jobs.

Everyone who eats beef is benefitted by joining. Anyone who works in the beef supply chain including famers, abattoirs, stores and distributors will find membership beneficial. We all have an interest in making the beef supply chain work as efficiently as possible.

A Beef Exchange is composed of a group of people interested in supplying beef in the more efficient way possible. Membership is free. If a member whiches to participate in a Beef Event they purchase one share. One share represents one equal portion of the capital required by the Event. The specific cost of an Event is based upon the cost of purchasing and processing the first order divided by the participants. To increase efficiency and lower costs a Event Tokens can be used as an alternative currency. Steps ought to be taken to reduce the need for units of conventional currency.

Capitalizing the Event requies each participant pay an equal portion of the total set up cost. Exchanges pay all members for their contribution in time, skills or assets. Contributions are paid for in Event Tokens or rollars. Rollars are a voucher or bookkeeping system for tracking debits and credits during an Event.

If a farmer is a participant he or she may provide an animal for butchering. This cost would be paid for in rollars. Those who wrap and process the carcass are paid in rollars.

If participants have equipment or space or other skills useful to the sale and processing of beef they would be paid an mutually agreeable sum payable in rollars. Rollars earned are used to purchase the final product or any other goods and services the Exchange offers. Events are closed economic loops (debits equal credits and all accounts  tend towards zero).

A steer or half or quarter is purchased according to the size and needs of the group and made customer ready either by the supplier or the purchasers.

Exchanges utilize what is available to the fullest extent possible. Members will find it cheaper to do whatever work they can if a member is familiar with butchering the Exchange will save money by paying him or her to do the prepatory work. Members may utilize the facilities of a slaughterhouse or space at a local store to do the packaging.

A booklet explaining the program is given to each participant when they join. A list of the available cuts and the quantity of each that will be available is provided. Each participant is made familier with what is available to be purchased and the relative amounts of each.

The Auction System:  A silent auction can be used to sell product. A book can be provided at a physical location or the auction can be held on line. Each buyer bids on the cuts they would like to buy. Each cut being available in packages with given weights. Unless proper display cases and packaging is available the packets should remain sealed and refridgerated. Each package is weighed and labled. Pictures of the product can be used to assist in the selling if display of the product is not an option.

Each specific package is bid on. Highest bids are processed first. If a default occurs the next highest bid is offered the product at the bid price.

Every part of the carcass is packaged and sold by silent auction. If the package will be purchased at zero cost the potential purchaser makes a zero bid.

Purchases are paid for at time of sale using rollars. Profits from the sale are shared equally amongst the programs participants whether they purchase product or not. The capital can be paid back to the participants or kept to purchase the next side of beef.

It is possible in this situation for a member to earn more than they spent depending on the bids made and the total income earned.

The total price paid should average out to the cost of the side plus expenses. No one is required to purchase a set amount of product or any amount at all. The carcass is paid for by the paid up shares and the cost is recouped in the sale. Profits or loses are divided equally amounst all program participants.

Less desirable cuts may be had at a very low cost or free. Particpants are free to bid or not bid as they see fit.

Matching bids are filled first come first served. Subsequent bids need not be higher nor initial bids lower. Each person makes a bid with highest bid being filled first but if two bids are the same the first bid is given first purchase option.

$0.00 bids are allowed.

The meat is made consumer ready and packaged in reasonable amounts by weight.

Product is sold to the highest bidder. A book can be used listing the packages and weights or an online bidding system can be established. The meat can be displayed or kept in a refrigerated state until sold.

Profits are shared after all costs have been accounted for.

Processing:   

The animal can be procesed and purchased at the local abattoir for a fee or hanging sides can be purchased depending on the groups preference. If an animal is purchased and custom killed the entire animal should be saved so that the guts etc can be processed into pet food. A person familier with this process will be required and if none of the members are familier with the work of processing beef the work is best done on site by the seller or other professional. Processing meat is not a job for amateurs.

Buyers: 

The fewer restriction placed on bids the better the auction will work. Each person can bid what they wish for the cuts they prefer. If one person wishes to pay $30.00 a pound for tenderloin and bids this amount he or she is free to take whatever amounts they wish as the highest bidder. In this respect she is a customer. Those who are willing to pay high get the meat they wish those who prefer to pay less spend a lower percentage compared to the income the program generates. This makes the process a win/win situation. A member can buy what they want and if they do not get what they want they earn income on the purchases made by the higher bidder.

Payment: 

Those who work deserve to get paid. All contributions of time and in kind whether in the purchase, preparation or distribution of the product has value and is paid for by the Exchange. Jobs should be allocated sparingly and with an eye to generating revenue for the program. A base rate for wages should be agreed to at the start of the program with additional funds allocated if this is required. If everyone is paid $15.00 per hour  for the work they do the only difference between what people earn will be how many hours are worked. The amount paid is established by the members with funds paid out by the program manager. A program manager ought to be elected to supervise the various steps.

A person who thinks someone is being paid too much for the work done has the option of bidding to do the job cheaper. If everyone is unwilling to do the job at the posted rate then either it is contracted out or someone can offer to do it at a higher rate.

The manager should be selected at the programs start up and paid at an agreed upon rate. He or she must have final authority to implement decisions voted on and carried by the majority. All workers and managers are paid in rollars.

Money: 

Because beef will probably have to be purchased with conventional dollars and there will be other expenses that require conventional funds the initial set up requires members to pay the registration fee up front using conventional dollars. Membership fees need to be set at a level where the fund is liquid throughout the programs operation. The total cost of the program has to be established at the outset and this amount collected prior to implementing the program. Each member pays an equal share of the program up front and is reimbursed in product and profits at the end of the program.

Promotion:

A promotional and instruction booklet has been prepared for this program. This can be accessed here. It explains everything you want and need to know about the free market works and how free market operations can reduce the price of beef.

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