cost of a meat bird

[Kezzie]

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Goodness- what do your chickens dress out at that you could possibly make $2k profit on 150 chickens at $3.99/lb?

 

[bigredfeather]

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I was thinking the same thing. I sold a few extra's for $2/lb and I thought I may have been charging too much. My math says the same thing for 150 birds with my costs. If each bird averages 5lbs, which is typical for me for a 7 week old Cornish. I pay 15 cents a pound for feed and $1.40 for processing. So:

150 chicks = $150
Each 5 lb bird consumes 15 lbs of feed = $337.50
Processing 150 birds = $210
Total: $697.50
150 birds at 5 lbs each = 750 lbs
$0.93/lb
Selling at $3.99/lb = $2,992.50 gross
$2,992.50 gross - $697.50 cost = $2,295.00

Of course there is nothing figured in for equipment, electric for brooding, or labor, but still. I do understand that costs will vary, but I would have never guessed you could get that much per pound for chicken. I'm surprised people will even pay that much.

Looks like I need to move and sell broilers.

BTW: I would have lowered my cost per pound a bit just to spite him for having the nerve to contact you. That's just me.

 

[THunter]

Man, if I could get $3.99/lb, I could make a killing. Can't imagine buying a 4 lb bird for $16.

 

[greenway]

thank you for your inputs.

i actually thought about the walmart concept, but since i'm not selling a massive amount, only 50, i'm not trying to cut in on his profits. with my caculations, (not including feeder, shelter, etc. since i already had those for my regular layers), the birds cost me in feed about $7 a bird by the time processing date comes. i think it's also low because i range them some. my birds weigh between somewhere around 4 pounds and so that means i sell for $14 on average. i make a $7 profit on the bird which is fine with me. if i could make a $7 profit on my layers, i would be ecstatic. i'm not very fond of meat birds and so my reasoning for only doing 50. my labor consists of filling the water troughs, filling the feed troughs and opening the door to let them range and then closing the door at night. an occasional adding of shavings. so labor isn't much of an issue.

i guess, i also raise these birds because i want people to taste what a pasture raised bird can taste like. i don't think i'm underselling my birds although i know the big markets around here can sell their birds for as much as $5 a pound. but they have to pay for the gas to get to the markets and have to pay overhead for the stall. i don't have to do that. and so i just don't see the need to sell them at the price others do. you cut overhead, you can cut the price and pass on the savings to the consumer or you can pocket the extra money which is not wrong. it's just not how i market my chickens.

like i said, i don't think i undersell my birds. people gasp at me sometimes when i tell them my POL birds and already laying birds are $15 each. they ask me why so much. i ask them have they bought a bag of feed lately?? i did all the hard work and these girls will lay well for at least another 3 years. i think $15 investment is not a bad deal. i also let them know where they can find cheaper layers. a feed store down the road from me sells them for $9. some buy from me but others will go to the feedstore. then they ask me why those $9 birds don't lay. LOL

i just thought it strange that he ask me to up my price to match his so he wouldn't lose on his profits when i work hard to keep my prices low.

 

[jaku]

I sell my whole, dressed birds for a flat $10 each right now, regardless of size. All said and done, I make about $4/bird, which ends up with me getting the birds I save for myself for free, with a little left as profit. That's enough for me. Not to mention the fact that unless you're selling to people who really KNOW natural/organic/pasture raised poultry, it's already a tough sell, when you can get a whole bird at the grocery store for $5.

I don't know what other people in the area are selling for, and I couldn't care less. I'm a very small operation. If I take away business from them, so be it- it's on them to deal with it. I'm happy and my customers are happy, and that's the extent of my concern. Let's just say that I wouldn't want to be the guy who asked me to raise my prices to help HIS business. Actually, my only competition is probably the Amish, and I don't envision them raising a fuss about it.

 

[UncleHoot]

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You're math is a little off, I think. The FCR for processed weight should be around 3.6 or 3.7 (4.0 if you want to err on the side of caution). So, the price of feed per chicken would be closer to $400 or more (or figure 7.5 lbs live weight X FCR of 2.5 = $422). Obviously, $50 isn't significant when charging $4/lb, but at $2/lb, it is.

Also, I add-in the amortized cost of feeders/waterers/pen, etc.

But all-in-all, your costs are pretty low. I was happy to get my feed for around $9.20/bag this time around (by mixing it myself). TSC and other places were charging near $13. The cheapest I found was $11.15. Plus, I'm only paying $2/bird for processing, while other processors in my general area are charging much more (I've heard). Maybe some day, I'll have the guts (pun intended) to process them myself.

 

[horsechick]

hi. sell for what you want. i dont think you have a delima at all. if he doesnt like it tough. if hes losing money maybe he should consider downsizing and not selling 200-500 a year. sell for what you feel comfortable with and you feel is fair and that is all that matters. around our area i have seen 2.50 lb. and ihave seen $10 a bird. i would be really miffed at that guy calling me. like i said if hes losing money he may be over extended and probably should downsize. not your problem. take care and best of luck. angela

 

[Wolf-Kim]

If I were you in your situation, I would sell my birds for what I want. I think it is crazy that he called and complained to you! I can understand not wanting to undercut the other by a serious competition, but it's not as though you are selling birds for $2/lb while he's selling them $4/lb.

I think that if you can sell yours for that price, if he's worried about competition, then he can lower his. If he's raising several hundred a year, then he's probably feeding bulk(which is HALF the cost of bagged feed). Usually when you raise something in bulk, it is actually cheaper than raising in small amount. Therefore, he should be VERY able to sell his product lower than yours... if he wanted to.

-Kim

 

[jamieneenah]

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There is no dilemma what so ever here.

If you consort with him in the manner you describe, what your doing is illegal.

Under section 1 of the Sherman anti trust act Price Fixing can be prosecuted at a FELONY.

"Price fixing requires a conspiracy between two or more sellers; the purpose is to coordinate pricing for mutual benefit at the expense of buyers. Sellers might agree to sell at a common target price; set a common "minimum" price; buy the product from a supplier at a specified "maximum" price; adhere to a price book or list price; engage in cooperative price advertising; standardize financial credit terms offered to purchasers; use uniform trade-in allowances; limit discounts; discontinue a free service or fix the price of one component of an overall service; adhere uniformly to previously-announced prices and terms of sale; establish uniform costs and markups; impose mandatory surcharges; purposefully reduce output or sales in order to charge higher prices; or purposefully share or "pool" markets, territories, or customers."

So you have nothing what so ever to discuss with him.

Jamie

 

[Buster52]

Ummm... not to belabor the obvious, but price fixing is illegal. Competitors can't get together and agree on a price.

Tell your neighbor you would rather not break the law, than you very much.