Ripoff ?

flowerweaver

Deeply Rooted
Joined
Sep 30, 2014
Messages
440
Reaction score
437
Points
127
Location
Southwest Texas
As a small egg farm, I can tell you I lose money selling eggs at $4.50/dozen. I would ask more, but the market here won't bear it and I'd lose money taking them to the city. I do it to offset my own cost of eggs and because all my 50+ chickens are pets. I use their manure as a source of nitrogen for my vegetables. They live a happy life free ranging on 4 acres. I even feed the old ones that don't lay anymore; it's assisted living because I am kind (and vegetarian). My customers enjoy meeting them and seeing the quality of life they are living.

I can almost guarantee the Costco free range egg chickens live about 250,000 birds a building with a small 10x10 foot porch in which they 'free range'. They also have cheaper feed cost buying in a large quantity.The closest place I can get organic feed is a two day round trip and I'd have no place to store a semi-full of grain. I can't grow it, so I have to buy it by the bag, which is expensive. I also don't have enough woodland to make shredded bedding, so I have to buy that too (it is composted).

The other thing people like to complain about the cost of is honey. I had to feed my two hives daily sugar syrup for three years to keep them alive through the drought. A commercial beekeeper would have let them die, and restocked after the rains returned. But I care about my bees, too. Everyone wants to buy my local honey, especially now that it's out that most store bought honey is watered down from China, but it's not for sale. The previous year was the first time my bees actually made honey, and I let them have it all as a reward. This year I robbed them and I'm keeping it all. After five years of work, I'd have to sell it at $100 a jar to make up for the time and expense.

Once, I bought a lovely woodcut of a waterfall for my dining room. I thought the price was exorbitant, but I wanted it. A decade later, I took a woodcut printing class. It was so difficult and my result looked like a 3rd grader had done it, that I felt like I should look the artist up and send her more money!
 

Smiles Jr.

Garden Addicted
Joined
Jan 18, 2010
Messages
1,330
Reaction score
575
Points
267
Location
PlayStation Farm, Rural Indiana
I remember many years ago in economics 101 we were taught that the consumer ALWAYS sets the price for everything we purchase. And I believe it's 100% true. If the consumer, en masse, does not make the purchase, I guarantee, prices will come down.

I'm sure all of us could do without eggs (or jewlery, or Tide soap, or outrageously expensive Under Armor underware, etc.) for a month or two. But some folks choose to pay the high prices and consequently they set the price.
 

Just-Moxie

Garden Addicted
Joined
Sep 4, 2011
Messages
1,307
Reaction score
1,057
Points
283
Location
Zone 6a
"Organic" is something about having to get the proper certification, required to use only certain types of feeds, scheduled visits by certifiers to verify being Organic. It seems like people have to jump through way more hoops than the general producers. I guess it drives up the cost of the eggs in the long run. JMO
 

Ridgerunner

Garden Master
Joined
Mar 20, 2009
Messages
8,229
Reaction score
10,064
Points
397
Location
Southeast Louisiana Zone 9A
Yes, it all adds up, ingredients but also everything else. The cost of ingredients for certified organic is higher, not just the feed but the supplements. Chickens need certain amino acids that mainly come from animal products. Those are those funny sounding ingredients on the label. Even if the feed does have animal products it doesn't contain enough to cover all the chickens need so some more of these amino acids are added anyway, but organic feed uses more and they are expensive to make. One of the requirements of "certified organic" is that the feed cannot contain animal slaughter byproducts, a relatively inexpensive source of animal products (inexpensive relative to higher cost cuts of animal products) so more of those expensive amino acid additives are used in certified organic feeds.

It is supply and demand, the free enterprise system. You have to charge enough to make a profit, but if your profit margin becomes too high some competitor will come in and undercut your price. The trick for a successful business is to find that balance where you maximize profits without inviting in competitors. Start-up costs can be pretty expensive, either starting a business from scratch or just setting up a new distribution network. That helps protect profit margins as long as the company doesn't get too greedy.

But the bottom line is that they are selling a product at a price enough people are willing to pay to keep them in business or they go out of business. It doesn't matter what my opinion is, what matters is the opinion of enough of the customers to maintain a profit.
 

Chickie'sMomaInNH

Garden Master
Joined
Feb 17, 2010
Messages
3,427
Reaction score
1,172
Points
313
Location
Seacoast NH zone 5
it does require a lot more oversight to be considered 'certified organic', a lot more paperwork too. but those that tote they are organic without the 'certified' added to the name could be selling you anything but! you're taking someone for their word if they are stating they aren't certified due to the paperwork involved. i do look for the 'natural' wording but even that label is still hotly contended.

i know for my local regular feed it is about $12/50 lbs. last time i saw an organic bag of feed for sale it was marked $28/40 lbs. i don't just feed them layer feed either, i tend to mix in cracked corn, BOSS, and during winter seasons will get a bit of the alfalfa pellets to give them some green nutrients besides the veggies/fruits i may throw in their food dishes. spring/summer/fall of course they are getting the grass and weeds from around the yard, and bugs too!
 

Carol Dee

Garden Master
Joined
Apr 28, 2011
Messages
13,161
Reaction score
21,324
Points
437
Location
Long Grove, IA
I remember many years ago in economics 101 we were taught that the consumer ALWAYS sets the price for everything we purchase. And I believe it's 100% true. If the consumer, en masse, does not make the purchase, I guarantee, prices will come down.

I'm sure all of us could do without eggs (or jewlery, or Tide soap, or outrageously expensive Under Armor underware, etc.) for a month or two. But some folks choose to pay the high prices and consequently they set the price.
EXACTLY!
 

bobm

Garden Master
Joined
Aug 22, 2012
Messages
3,736
Reaction score
2,509
Points
307
Location
SW Washington
Then there is the added scare tactics, brainwashing publicity that makes it sound that certified organic is somehow better ( even if some believe this is true, millions of people just CAN'T afford the prices ) and lawsuits to keep the e-con 101 of supply and demand out of balance. :confused:
 

Latest posts

Top