As you may have noticed our prices went up this month. We will hold steady at this price as long as we can. Feed costs went up again this month and it is expected that they will continue to rise.
This is a portion of an article from the AP (Associated Press) regarding this issue...
Monday May 5, 5:25 pm ET By David Koenig, AP Business Writer
"Pilgrim's Pride also said its U.S. business would probably lose money in the current quarter, and it might be summer 2009 before the company returns to normal operating profit margins....Chief Executive Clint Rivers placed blame for the industry's trouble on the federal government's "deeply flawed" policy of paying subsidies for using corn to produce ethanol for fuel, which he said would cause food prices to rise further.
"American consumers are only just beginning to feel the impact of sharply higher food prices," as food producers pass along more of their higher costs, Rivers said...."
"American consumers are only just beginning to feel the impact of sharply higher food prices," as food producers pass along more of their higher costs, Rivers said...."
Both corn and soy beans are on the rise and we are feeling the pinch here at Rooster Hill. We have however decided to try to hold our new prices for the next few months. Our feed costs have gone up nearly 20% in the last 3 months.
So what are we going to do?
- Build more roosts in our modest Hen House
- Buy more fencing and create a much larger yard and move toward pastured/free range chickens as soon as possible.
- We are checking into making our own feed!
The most important thing I am finding in farming is watching my bottom dollar. Figuring out how to spend the least amount of money for maximum results. Just like any new business we are going to spend more then we make the first year but we cannot continue on this trend indefinitely. We have 9 months until we reach 1 year... We hope to be making a profit by then.
Counting our coins at RH
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