Meat bird pricing?

It's hard, it's not easy by any means. However do keep in mind about how many you do. If your doing only 100 every 3-4 weeks your going to have higher cost. If you have a bad batch you have less overall birds to absorb your loss. For instance if you have 65 birds make it out of 100, your profits are going way down. Which this will happen, I had it happened to me a couple of times this summer. I was fortunate to have great batches as well to help off set my bad ones.

Anyone can sell 50 chickens at $4.00 / lb. it's when you can sell 4,000 at $4.00 / lb. So do keep in mind when doing your chickens that you leave that margin for growth. Don't max yourself out by charging top dollar for everything you raise, you will go out of business quickly. However don't undercut yourself either, think of it as what would you pay for a dozen eggs/chicken/turkey if it was up to standards.

The key is to not compete with factory farms, but not be so outrageous that only a handful of customers join your escapade. You need quantity and quality to make it when raising custom broilers. You have to have the best and you have to be able to do more than a couple hundred a year to make it. It does take time though to get to a few thousand so take your time and learn from it. Buy your equipment as you go.

Your time is worth something.... but do remember that all of your income will be reinvested in your venture. You will see very little money to keep in your pocket. Even though your not making much on a profit your buying your equipment/pens/ ect.... and your also gaining knowledge and experience which trust me.... that alone is worth its weight in gold.


Also keep in mind that your cost / bird should be between $2.50 -$5.00 / bird depending on how you figure out your cost. I can tell you from experience if your not processing your own birds, your not going to make money at all. It's very easy to go above your budget when paying someone else to do your processing. It may be expensive to start on your own because your birds / hour are low.... everything cost so much because your only doing 50-100 at a time... But when time goes on and your able to buy better equipment, gain more knowledge, and pull more purchasing power when buying in bulk... things are different. Not just bulk feed... but bulk propane, bags, bedding, chick cost (average producer that does a few thousand doesn't pay more than $0.50 / chick), gas is cheaper as your doing more birds/gallon, electric is cheaper... again more birds / watt, and the list goes on and on.

There is so much that goes into your cost that most don't even think about but when you expand those cost over a few thousand birds it's not so bad. Also note that if your wanting to direct market your birds you will have market fees, health inspection fees, NSF coolers for transport, insurance, and again the list goes on.
 
I have a related question on pricing. Do you guys have any birds that end up with an occasional broken wing, skin tear etc from the plucker and do you end up selling these or absorbing them as your own? If you sell them, are your customers understanding or do you give a discount since it's not perfect?
 
Give a discount if it's has an imperfection. Some imperfections you can get away with, some you can't. Torn skin, if it's a small tear or one that is not on the breast it's usually sellable. However broken wings are not, if the wing is dislocated at the joint... you can sometimes sneak that one in as it's really not an issue.

If they are really bad, I will part them out. Very rarely will the breast meat be imperfect, the skin maybe... but the actual meat will be fine. Breast meat is anywhere around $8.00 - $12.00 / lb. which will pay for the whole bird.
 
Do you guys need any permits to sell your birds? Has the health dept. gave you a hard time? I was thinking about selling some but not sure the best place to advertise.
 
I aim most of the following questions to Brunty_Farms. You seem to know a lot. And have been in the business for a while.


I am planning on getting 25 or so cornish x chicks this spring to raise for myself and to sell. I hear everyone throwing out these really low prices on chicks. I live in Western Wisconsin, anyone know of a place to get cornish x chicks for less than $1.88/each. This is Mcmurray's price for 25.

I was going to offer these chickens at around $6.00 and barely break even.

Also I am curious on who will buy these chickens for $4.00/lb! That seems like a way too good to be true price. If you raise a bird to 5lbs you can sell it for $20? Really!?! I need to know how to find those buyers.

Feed is also a concern i have, 50lb bags cost me about $17/each. This would kill me. Any other western wisconsin residents have any feed mills around for cheaper?

I would love to one day make a profitable business out of this, just not sure how to find these great deals on chicks and feed.

Any input would be greatly appreciated!

Thanks
 
For the chicks there are a handful of hatcheries that have better pricing then McMurray. I got my first ones from there years ago.

Some to look at www.meyerhatchery.com www.moyerschicks.com www.mthealthy.com www.centralhatchery.com www.welphatchery.com

There are many more.... but do realize that you will get the biggest discount when ordering over 100 at a time.

Feed is another issue. Look for feed mills not retail feed stores. You need a mill that actually grinds and packages the grain/protein mix.

I'm in Ohio which shouldn't be to far off (cost of living) than Wisconsin and I pay $7.80 / bag. Which is 2,000 lbs at a time. You probably would get away with 500 lb minimum and feed your entire flock for the duration.

As far as pricing... don't undercut yourself. $6.00 should be game hen prices. Roasters that are 5-7 lbs should bring $14.00 easy. Fryers should bring about $10-12.00.

$4.00 / lb is the high... and I have seen that before. But the fact is they limit their sales to the wealthy, when in fact it's not the wealthy that are the most concerned with their food. I find middle class people to be the ones that sustain my business. So you can't have prices so high that it cuts them out. I can't think of too many people that can afford a $20.00 chicken. My point is, that you can sell a handful for $4.00 / lbs but you can't sell thousands at $4.00 / lb.

I hope I answered your questions...
 
We do well selling at $3.00/lb, for 3.5 - 5.0 lb whole Cornish X. Our cost usually runs $1.35 - 1.85/lb dependng upon losses, feed prices, etc.

We could get $4.00/lb, but would lose 25-35% of our customers. They will pay a premium at $3/lb, but $4/lb would 'break the bank' for them.
 
Does anyone have price configurations for heritage breeds or freedom rangers? Also, is there any hatcheries cheaper than JM for the FR birds? Can they be kept over and bred to heritage hens for just some more meatier birds?
 
Brunty_Farms

Thank you very much for the crucial information. Excellent links too, I'm very glad i asked about this.

I will take your advice and see what kind of a price i can get if i pick up all 500lbs from a mill at one time.

Do you caponize your roosters that you let grow to roaster size?
When it comes to convincing customers that your birds are superior to store bought ones, what are typical comparisons used to make $14/roaster seem like a good deal?

That should be it for now on the questions, i don't expect you to give away all your secrets but i do really appreciate everyones help.

Thanks!
 

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