Cost analyses

[FreddyC]

First forgive me if this is in the wrong thread. I did a cost sheet on how much it cost us per egg to produce them. It's around .08 cents per egg. We sell them for around .21 cents per egg giving us a .13 cents per egg profit. That's about 140 percent as I figure it. I would like to hear about others and what you do to lower your cost. Thanks all.

 

[Fred's Hens]

The true cost analysis would include everything spent to produce the eggs. This might include the cost of the housing, fencing, bedding, feeders, fountains, bowls and so forth. It might include the original cost for each chick, the brooder bulbs, electricity and bedding and most importantly, all the feed it took to grow out those chicks to point where they began to produce eggs.

When the true cost analysis is done, is almost impossible to be "profitable". This is probably best viewed as a hobby, until or unless the true cost analysis shows profit margins that include all the costs of producing eggs for sale. As a hobby, approaching the "break even" point is considered a monumental victory by most folks.



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[FreddyC]

My cost numbers was based on the cost of feed only, as all that other stuff is a must just to be able to raise chickens so I look at the start up as a non recoverable investment to begin with.

 

[ocap]

fixed costs are those that exist even if you decide to stop raising chickens: land, building
variable costs change with each added animal: feed, water

great books written on the subject by those that teach at our universities

another similar topic is "economic decision making" which is comparing two or more similar purchases: Leghorn vs Orpington vs silkie

 

[Toddrick]

My cost numbers was based on the cost of feed only, as all that other stuff is a must just to be able to raise chickens so I look at the start up as a non recoverable investment to begin with.

What about medicine? Straw, pine shavings, DE, sand, and such things? And of course, your man hours will never be reimbursed...

 

[123RedBeard]

Sounds like the "today cost" but what happens when they moult? No eggs, but they still want to eat!

Sometimes you can find a smaller grocer or farmer who will give away free produce or bread (I would not feed them junk food!)

Free ranging ... Is free ... As long as they all make it back to the coop alive, and lay their eggs in the coop!

 

[Fred's Hens]

My cost numbers was based on the cost of feed only, as all that other stuff is a must just to be able to raise chickens so I look at the start up as a non recoverable investment to begin with.

Those are costs or expenses in my book and on my farm's books. Not an investment.

An investment is my 401K, hopefully.

 

[Fred's Hens]

The single largest expense, on a re-occuring basis is bird acquisition and feed. To deal with feed costs, the price per hundred must come down. In my experience, there is no other way to lower the cost of purchased feed other than avoiding retail stores selling pre packed, trucked in feed.

The cost per hundred of Layer complete feed, for example, at the local rural lifestyle stores near me is over $30. The cost per hundred of Layer ground fresh at a local feed mill near me is $19. Of course, local feed mills rarely have pellet machines so the feed will come in gunny sacks, tied at the neck with binder twine, fresh from the milling floor. It is what is commonly called mash.

Mash often requires a different feeding style as well.

This is my single biggest suggested step in reducing current feed costs. Finding a local feed mill isn't always easy if you aren't located in a mixed agriculture area or an area without a strong Old Order Mennonite or Amish community.

 

[FreddyC]

Thanks Freds Hens. That was what my original question was based off of how to lower cost. Not the definition of the word cost. That makes a lot of sense to me. I am looking for other options of acquiring feed other then TC.