The King Family Farm wants to be producers of quality pasture raised eggs for local families to consume. The family chose pasture raised eggs, because humane treatment of chickens is important to the family. By permitting the chickens to free range, it allows them to live instinctively. Providing them the free-will to choose when they leave their coop and what they eat, as well as allowing them to consume a varied diet of insects...
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...ce pasture raised eggs, is because chickens have a feed reduction rate of approximately fifteen percent when they have complete access to pasture (Spencer 2013). Once chickens reach laying age, they will consume approximately 1.5lbs of feed per week at $0.26 per pound, which comes to $0.39 a week per chicken or $19.50 a week for 50 chickens.
Now that we have established how many eggs a chicken can produce each year and the cost of inputs, we can now determine how much the King family should sell each dozen of eggs to breakeven and to start making profits. The current national average for cage free eggs is $2.75 a dozen, but the the King Family Farm is selling their farm fresh pasture raised eggs for $3.00 a dozen, because the quality is higher. In order for the King family to break even, they would have to sell 675 dozen eggs and would take approximately 13 months.
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