Research draft. Not legal, tax or financial advice. Figures are dated to their sources; placeholder assumptions are flagged as such.

MSU Unit Economics

The pattern across sources. An inspected mobile unit is a high-fixed-cost asset that sits idle most of the week. Labor and capital recovery are spread over too few head. The surviving units either had their capital donated, or sat inside an existing butcher business that absorbed the overhead.

Every figure below is for a USDA-inspected unit unless marked otherwise, and carries the year its source reported. For the far cheaper custom-exempt rig, see Custom-Exempt Mobile Rig.

Capex over time

Year Item Cost Source
2000 IGFC total project (trailer $60k, equipment $27k, truck $18k, design $25k, testing $15k, outreach $5k) $150,000 IGFC
2007 Two MSUs (Nevada study, never built) $413,650 (~$207k each) Nevada
2008 Replacement IGFC trailer, same capacity $170,000 IGFC
2009 MSU $250k + used truck $20k + corrals/knock box $10k $280,000 Idaho calculator
2009 PSMPC 45-ft TriVan trailer; total start-up ~$500k $250,000 trailer PSMPC
2011 Start-up excluding cut-and-wrap (MSU $200k, used tractor $26k, misc.) $235,310 NMPAN 2011 guide
2022 Turnkey Friesla build-out + ~$280k operating capital if financed ~$550,000 Rusted Gate
2026 Sentinel USDA-compliant 30 ft gooseneck / 53 ft semi, list price $192,000 / $300,000 Sentinel
2026 Sentinel custom-exempt 12 ft / 16×8 / 16×10, list price $72,000 / $92,000 / $115,000 Sentinel

Builders named: Friesla (Everson WA, turnkey), Mobile Processing Trailers & Supply (Colorado, “bare bones”; Rusted Gate calls the cost difference “significant”), TriVan, and Sentinel (Idaho Falls; 2026 list prices above).

The trailer is often not the biggest capital item. In the 2007 Nevada design, the fixed chill/age/cut plant was costed at $1.51M, later revised to about $0.8M for the building. That is 4–7× one MSU. See The Fixed-Facility Dependency.

Throughput ceiling

Source Beef per kill day Kill days per week Crew
Idaho calculator (2009) max 14 (2/hr × 7 hr) max 4–5 3 butchers + 2 assistants
IGFC (2007–08, actual) 9–10 3–4 2 butchers, 8 hr + 2 hr driving
PSMPC (2011–13, actual) 8–10 animal units ~90 days/yr (2012 est.) 1 contract butcher + own assistants
Coast Grown (2009, actual) ~3.6 (32 head in 9 days) — —
Rusted Gate (2022, plan) — 1–2 in years 1–2 2 butchers at 0.5 FTE

A kill day is capped by the hours under inspection (about 8) plus set-up, driving and clean-up. Days per week are capped by hauling carcasses back, washing and maintenance. Real units ran at a fraction of the theoretical ceiling.

Kill fees (beef, $/head)

Year Who Fee Notes
2008 IGFC (WA MSU) $105 Plus $0.82/lb cutting; $450 minimum per farm visit; first rates “too low”, losing money within 6 months
2011–13 PSMPC (WA MSU) $110 member / $140 non-member Surcharge for cattle >30 months
2022 Oregon fixed USDA plants $80–$205, avg $134 Cut-and-wrap $1.00–$1.50/lb
2022 West Coast MSUs $159 (IGFC non-member) – $260 (Bay Area) Heritage Meats $216
2022 Rusted Gate break-even $240 by year 3 Only with grant-funded capital
2026 Blue Ridge Meats, Middletown VA not published Books 3–5 months out; bills on hot weight
2025 T&E Meats, Harrisonburg VA (USDA + custom, fixed) $75 + $1.05/lb standard cut and pack; +$0.10/lb resale label; +$50 for cattle >30 months
2026 Seven Hills, Lynchburg VA (USDA, fixed) none $1.20–$1.30/lb carcass weight, all-in; $775 minimum

Virginia benchmark (round 2): about $1.15–1.30/lb hanging weight all-in at inspected Valley plants (2025–26). Fixed-plant kill fees are low ($75), so plants earn their money on cutting. See Valley Processor Landscape.

Break-even: the Rusted Gate table (2022, USDA-inspected)

Scenario Y1 Y2 Y3
80% debt, $175/hd −$57,099 −$28,739 −$79,227
Grant-funded capital, $175/hd −$40,328 −$12,563 −$62,456
Grant capital + fee $200 → $240/hd −$27,828 +$17,310 +$2,544

Volume was 500 / 700 / 1,000 head. Year 3 losses jump because both butchers go full-time. The plan’s own conclusion: “The MSU will likely not be profitable for many years, if ever”. It needed a subsidy of “$25-50K plus a year”. Three agents extracted this plan independently and agree on every figure.

What drives cost

Why the optimistic projections differ

The NMPAN 2011 pro forma showed profit from year 1 ($36k in 2011 rising to $131k in 2014). It assumes 260 full kill days a year from launch, with marketing, rent, benefits and admin carried by a partner cut-and-wrap. The Idaho calculator’s $280k “return” is a retail margin on meat the operator owns, not fee-for-service profit. Never quote either as evidence that a fee-for-service MSU pays.

A fixed-plant benchmark (ERS ERR-150, 2013)

The USDA research report modeled annual expenses at $231k for a very small plant (4 FTE), breaking even at about 462 beef a year (about 9 a week). A small plant (10 FTE) costs $565k and needs about 1,130 beef; a regional plant costs $4.44M and needs about 8,884. All three assume $500 processing revenue per beef. Its mobile-unit box warns that MSUs may cost more per head to run (fuel, maintenance, transit, limited capacity), and that kill plus a separate cut-and-wrap can cost more in total than one plant. Its success factors are a committed cut-and-wrap partner, one or two dedicated leaders, and the right scale (ERR-150). Figures are in 2013 dollars.

How the survivors made it work

Gaps

  1. Custom-exempt rig cost Partly resolved: $72k–$115k list (Sentinel). There is still no full operating budget for a custom-exempt mobile business.
  2. Prices for Gentle Harvest, Gore’s and Crabill’s, and any farm-call fee charged by a Mid-Atlantic mobile operator.
  3. The Rusted Gate xlsx appendices (line-item capex) have not been extracted.

See Also