>"Just because a producer raises grass-fed beef he should not expect a major premium price for his >product. His primary benefit comes from having a market for a product he can raise for less than it >costs to raise grain-fed cattle. In other words, raising grass-fed beef is a margin enhancing >business."
I can attest to this and seen it in action. In central Idaho nearly everyone grazes their cattle (and sheep) for much of the year. (Lots of wide open spaces). I have spoken with many ranchers who all complain about the fact that they have to "grain finish" their beef because that's what the general market wants. A few of them have claimed that the value of skipping the finishing stage could, in some cases, actually double their profits.