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Important Considerations Coming

written by

Ben Simmons

posted on

October 28, 2021

Transparency! Defined by Webster as free from pretense or deceit. I like it to being open, honest, and truthful.

That's what today's newsletter is about. So, here goes.

As a seller, we do not like price increases. Simply put, I am not farming to make a lot of money. But, you have to make money to stay in business.

Our costs have increased and will probably continue to increase. My professional experience (8 to 5 job pre-farming) was Global Sourcing Director and was a Certified Purchasing Manager - kinda like a CPA!

So, the first thing I look at is cost of business and what can be done there to improve the businesses bottom line.

A "GLARING" expense to our farm is credit card fees. When I have mentioned this to folks they seem surprised that we are charged a fee for them to use their credit card. Well, last year it cost us more than $6000. And as of last week the report says we are 22% ahead of last year in fee charges.

So, what to do? Raise product prices to include the CC fee - but then that negatively impacts customers who pay by cash or check. Many companies I do business with are charging back the cardholder the fee for their convenience to use the card.

I have also looked at product prices as compared to other farms selling similar products. I was surprised how much LOWER our prices are. Here are some examples:

Whole chicken- we have our chicken priced at $4.15/lb. Two farms that I sell feed to are priced at $5/lb. My friend (MCM) in Sylacauga sells wholes for $5.75/lb. and his chicken breast are $15/lb. The average price of all reporting farms in North Carolina last month was $5.78/lb. for whole chicken and $14.28 for breast.

Eggs- we sell a dozen large eggs for $4. MCM sells the same egg for $7. The average in NC was $5.87. A friend in Foley sells his for $5.

Bacon- we sell for $9.57/lb. MCM sells for $15 and the average in NC is $12.13.

Beef- we sell boneless ribeyes for $14/lb. MCM price is $25/lb. The average in NC is $18.87. Surprisingly, cuts like flank, skirt, and hanger are priced between $13 to $14.80/lb vs. NGF price of $7.50.

Those are a few examples. As I review the better prices from other farms we are 20% plus lower.

I do know that to stay in business requires you to make money and be able to pay a living wage to folks that help you, And what we do is important for the families that depend on our products. I am confident this will be even more true in the coming months and years.

Lastly, some big ticket needs the farm has are: 1) our cow herd needs to increase to effectively utilize our pastures and supply beef for sales 2) I would like to add a herd of sheep and goats that would not only provide a source of revenue, but also help clean our pastures of stuff the cows don't eat.

Again, as sellers, we do not like price increases. However, our cost are rising and we have no choice if we want to continue serving our customers needs.

Thanks for listening.

As always, we thank you for rewarding our hard work with your trust and support.

More from the blog

Beef Update & A New Product

Beef Update – Typically this time of year folks are hesitant to buy bulk beef for their freezer due to hurricane risk. That is why we have delayed our next custom half & whole beef processing until September. If you are interested, our next harvest will be September 2nd with pickup on September 22nd. If you want to be included then please email me your name, email, and cell number to be added to our wait list - and be the first folks contacted and guaranteed to receive an order. Beef prices continue to increase and hit a new All-Time high this week fueled by strong demand and limited supply. For example, based on what a 700 pound steer sold for at the Hattiesburg Stockyard Monday, I could make more than feeding him till he weighs 1100 pounds and sell as packaged beef - but our mission is to provide nutrient-dense, clean food to our customers. Effective immediately custom beef half and whole prices will increase $0.50 to $6.25 per pound based on the hanging weight. Retail cuts will increase for September deliveries as well.

Real Health Is NOT A Pill. It's A Practice!

Two Great Must Read Articles – Typically I don't make a big deal about articles we have read, but these two are so good that I felt they needed to be shared. The first is by Joel Salatin titled "Food Think" that is part of his The Lunatic Farmer blog. You can read the full article at this link. The second article is one Beth forwarded to me from the Health Viewpoints section of Epoch Times titled "Americans Spend Trillions on Health Care but Remain Unwell - Here's Why" Dr. Yang, FAPA, a board certified psychiatrist, begins by stating the difference between treating disease and building true health lies in a proactive and preventative lifestyle. Note - Beth and I would agree with other folks who commented that his article is spot on and very important for folks to read and understand. You can read at this link.

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