My local processor is about $1.25/lb and processing is based on hanging weight. My cattle are corn fed and stay on pasture till about 450-500 lbs. Then they are fed Haylege, Silage and Cracked Corn at various rations until they reach a market weight of about 1500 lbs. I charge by the hanging weight and my cattle have a higher than average dress percentage. Current average dress percent for a steer is 63% so my 1500lb steer now weights 945lbs. So processing is about $1180. Customers purchase the steer for about $2.62/lb on the rail so total cost is about $3680. The beef will be further processed though and this will reduce take home weight to about 660lbs. So cost per pound is $5.57/lb.

This of course includes my profit and I have been averaging about $500 per calf so if you are raising it you will be able to reduce the total cost some.