Saturday, July 12, 2008

Taking Orders for Happy Hens

Below is a scanned copy of the first Happy Hens Newsletter since the recent change in ownership:







Liam and Doug did a cost analysis last night and determined that the chicken feed cost per dozen eggs is NZ$8.64. Ouch. Given these costs and the current average egg production of two eggs per day, Liam and Colin can expect to make NZ$0.23 per day if they sell each dozen for NZ$10.00. As Liam noted, "That's 11.5 cents for each of them a day and less than a dollar profit a week." Liam was stunned by the numbers. While Liam is a bit nervous that customers will balk at this high price for eggs, he remains optimistic that egg production will increase in the warmer weather. He spent the evening on the phone with the our neighbor, who is also a poultry farmer, seeking advice on cheaper sources of chicken feed than the local pet store. This afternoon Colin and Liam investigated egg prices at the grocery store. Prices ranged from NZ$5-11, depending on the size and farming methods (free-range, organic, conventional). Happy Hen's has a threefold strategy at the moment: to hope for an increase in egg production as the days lengthen, to try to reduce feed costs, and to market their superior product and service using their newsletter.

1 comment:

Anonymous said...

Hi, Does Happy Hens deliver to Santa Barbara? Love, Allison