Armchair Economics

[12 Acres]

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Very intelligent. Thank you.

 

[kstaven]

No matter how draconian a government gets eventually they have to answer to the people. History has shown that over and over. When enough people say "no more", making examples of a few is no longer effective and they either change mandates or face a revolution. They can't possibly arrest or shut us all down. Considering changes in the publics perception of the government in past decades and the information access that has come with the internet it is becoming very apparent the general public is feeling very pushed and bullied.

 

[12 Acres]

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Never let it be said that "chicken people" are stupid. Yet another intelligent comment!

 

[kstaven]

We just eat a good enough diet we aren't in a fog from all the chemicals and easy to herd like sheep.

I did want to add that NAIS is not just a US problem. Canadian government is pushing it under the guise of a program called the National Animal Health Strategy. I have had the displeasure of some involvement with stakeholder groups on this and the recommendations and mandates disgust me. Not to mention this is being developed behind closed doors and without "public" input.

 

[ursus]

What happens to our economy when, as a society, we start feeding ourselves more and more and spend less at the grocery stores? When the demand for grocery store eggs drops, how does it impact our local economies as well as our national economy? What message does this send companies like Tyson, Perdue and Eggland?

Grain prices probably won't drop, but if the demand for eggs drops then the producers are going to have to lower their prices to compete (with people like you and me!) while their costs remain the same. Could this put the big poultry companies in a very uncomfortable financial position?

To answer your questions from an economic standpoint, as many other readers have correctly noticed, it takes a LOT of eggs to make the fixed costs associated with poultry "cheaper" than store bought chickens. Especially if you are an obsessive, overbuilding coop designer like me.

Never the less, to answer you questions, grain prices will go up. Yeah, I know, disappointing. Considering a constant elasticity of demand model, i.e. you eat 2 eggs every morning whether you buy them from the store or raise them at home, your chickens will likely be less efficient at conversion of grain into eggs, hence you will need more grain in order to produce your 2 eggs, which leads to an increase in demand for grain, and a subsequent increase in price.

The increase in grain prices will lead to a increase in egg prices. That's just the law of demand.

Most of the rest of your questions are answered in a round about way by considering the relative size the "home market" for eggs in relation to the "store market" for eggs. In that I mean to consider the number of people who are raising poultry for eggs in relation to the number of people who couldn't be bothered by the idea.

What will happen to our local economy? National economy? Big chicken and egg producers? Well, nothing.

People like you and I gain utility by raising chickens. We like to care for them, watch them peck at things, we like to build them a coop and paint it like a barn. (ok, maybe just me

) In spite of the fact that the eggs are expensive we do it anyway because we find other value in the project. My first batch of chicks and all the materials to house and feed them amounted to an expense of $270. That means in order to "break even" at your listed price, I need to produce 1,250.97 eggs from my flock of five! Not likely!

For all the other people who don't want/can't raise their own chickens, that's fine. They can buy their eggs. Don't come to this to "get back" at anyone or any company, do it for yourself, do it for the enjoyment you get out of making a more self sufficient lifestyle.​

 

[12 Acres]

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Well said, and I plan to enjoy my chickens very much!

It certainly feels good knowing that I'll know where my eggs are coming from and that my hens will be treated very well. I feel bad that battery chickens are housed the way they are, 3 or 4 to a cage. It feels good knowing that my girls will be able to be chickens, not egg machines.

 

[12 Acres]

It seems the cows are all for it too:

 

[Rosalind]

The increase in grain prices will lead to a increase in egg prices.

True, but if grain prices are high and egg demand is low, then any of the following become possible business options to maintain profit:

-Convert existing equipment to another product with higher profit margins (i.e. get out of the egg business)
-Takeover of the grain processing and agribusiness side of things so as to eliminate the profit cut of the grain processors and middlemen
-Distribute facilities among multiple smaller production plants so as to minimize shipping costs
-Feed the chickens something that is cheaper than grain--sadly, I can think of many unsavory things that have in the past been fed to livestock in lieu of high-quality grain...​