Egg share price increase

Attention Egg Share Members: Price Increase

Dear Eggs Share Members:

Over the past few years we have been striving to produce vegetables & fruit, raise animals, and have meat and eggs available to our members. Two of the reasons we decided to incorporated the animals into the farm is for the diversity and the fertility they provide.

Up until last year, we were not keeping good track of the cost of production for the animals. We were not making decisions based on a solid business plan; we were making decisions based on the vision that we have for the farm.

This past year we set up a system in our accounting program to track profit and loss in the different areas of the farm. We were able to do a much more thorough job of tracking the hours of the workers at different tasks and the related costs for task on the farm.

The animal 'division' didn't look good on paper, therefore we have been delving further into what is going on. As it turns out, the egg production profit and loss has bells ringing and whistles blowing that we did not pay appropriate attention to until a few weeks ago.

Here is the cost of production for 2014 for the Certified Organic Eggs:

Wages for egg washing                     $7000

Certified Organic Feed from PEI        $23000

Trucking Cost of the Feed                 $3000

Cartons for Eggs                              $650

Wages for care of the hens (chores)  $7200

Cost of purchasing the chicks           $300

Bedding (shavings)                         $1000

Cost of Production                       $42150

This is the cost for 100 dozen certified organic eggs each week for one year. It does not account for overhead or capital investment. The capital cost for the egg mobile built in 2014, barn renovations in 2014 and the egg washer + grading station this year is $10,000.00. We will finance this over 5 years.

Josh and I both knew that we needed to increase the egg price, but hadn't analyzed the information to determine how much. I felt I needed to get the shares posted in January and so we increased the price by $1.00 from 2014/15. We realize now that that is not enough to cover the cost of production.

Because the new CSA year hasn't started yet, we feel we need to address this now and change the price of the egg shares. $8.43 is the cost of production and if we add 10% to cover investment and overhead costs, the total for one dozen eggs will be $9.27. For the 1/2 dozen we add an bit extra because we need to cut all of the cartons to fit the 1/2 dozen this takes extra time.

 

Eggs

Posted Price 15/16

New Price

Difference

1 Dozen

$350.00

$463.50

$113.50

1/2 Dozen

$187.50

$244.25

$56.75

 

We realize and appreciate that you may wish to step away from the egg share because of the price increase.

Could you please email me and tell me if you wish to continue or stop your egg share? If you wish to continue, we will invoice you for the difference. If you wish to not have the share this year, we will refund you for whatever you have paid and remove the invoice from your account.

Please accept our deepest regrets that we have put you in this situation. If you'd like to speak to us about this please call us anytime. 902 670 3277

Patricia & Josh