Which tells eggmen more, cost or income? ELIZABETHTOWN - Which is most important when analyzing an egg production and marketing business cost or gross income per dozen? One could get involved in some good arguments over the question Some mil argue that cost is most important and others will argue that gross income is most im portant. Yet when one recalls discussions at industry meetings over the years, by far most of the discussion centers around methods of reducing costs. Very little time is spent discussing increasing revenue except in times of low prices. Then volumes are written in trade papers and discussed at meetings about the necessity of improving the price discovery process. Sometimes price discovery seems to mean discovering always profitable prices. Some will say that costs are most important because one cannot as an individual do anything about prices received. Of course, both costs and income are important, but of most importance is the difference between costs and in come net profits. Least cost does not necessarily mean most profitable. In some cases it may not be profitable, while profits may accrue to a flock with higher costs. When one discusses and or analyzes costs it is necessary to consider quality and services performed One must compare costs for a given quality and services, says Penn State Poultry Specialist Kermit Birth. As one makes changes in management practices which are expected to reduce costs, con sideration must be given to possible effects on mcome. Will a change in a method of handling eggs which reduces labor increase or decrease the number of eggs with damaged shells an mcrease in shell damage means decreased mcome whereas a decrease in shell damage means more income with no change in the price for the respective sizes and qualities. What unpact will a change in ventilation have on number of eggs produced, egg size, and shell quality? Sometimes one must make a decision which may increase costs in one phase of the business in order to reduce costs in another aspect of the business. However, the reduced costs in one phase must be greater than increased costs in the other phase. Increasing costs may m some situations increase income more than costs are increased. There are factors under the control of the producer which influence the income per dozen eggs per bird or total income. These include size distribution, percent of eggs with damaged shells, total number of eggs produced, marketing ability, and services performed, as well as others. The impact of the factors affecting income for a given producer can only be estimated through outside research studies or inf ormation foi other production units. The actual ar junt must be determined by information ob tained from one’s own flock, Birth says. Perhaps shell damage is one area where changes in management techniques can aid in increasing income. At 60 cent per dozen for grade A large eggs and 30 cents for eggs with damaged, stained, or dirty shells which are included in the crack category, each one percent of eggs of sizes above medium which are marked as cracked, stained, or dirty can reduce in come received for all eggs marketed by as much a 0.3 cents per dozen. Birth figures. Decision making requires suf ficient information to determine why certain situations occur. How many in the industry know how much income was lost for each of their flocks due to the number of cracked, stained, and dirty eggs produced? On the other side of the equation, what would it cost to make necessary changes to reduce shell damage and avoid a large part of the loss of income due to shell damage’ Does one know what effect different ventilation systems and DIAMOND CAGE SYSTEMS THE SPACE SAVER - 4 HIGH STACKED The Best Equipment For Converting Old Poultry Houses To Maximum Density Thmktng about making better use of your old poultry houses 7 Here s the answer With Diamond s 4 High Stacked Layer Cage System you can increase the bird density of an old stairstep cage house from 30 000 birds to 108 000 And that s without adding a single square foot of floor space The system 8U is just 73 high and 60 wide •f ceiling height permits you can in crease bird density even more op to 135 000 birds with the 5 High System 812 or 162 000 birds with the 6 High System 813 With new construction you reduce your overall investment per bird by putting more birds in a building and utilizing the otherwise wasted vertical space ; * " V ■ i *? House Capacity, 4 High Stacked 4 Rows - 200’ - 28,800 Birds 4 Rows - 300’ - 43,200 Birds 6 Rows - 400’ - 86,400 Birds CjMMMDO SOUHWttNT, me. FARM A HOME SUPPLY ».*, t m tTtUMTtH. IMNUIH. W*tOW«MM. Phono: (717) 46*-3321 procedures for managing these systems have on shell quality, egg numbers, and egg size for the various seasons of the year for each of the houses he owns or manages, Birth asks. There are always more questions than answers The an swers must be based on the specific situation. What may work in one situation may not work in another, he points out. Dairy farmers look to conservation tillage HARRISBURG Benefits from conservation tillage operations, such as no-till and minimum tillage, have caught the attention of dairy farmers in Pennsylvania, according to a USDA spokesman. Many dairy farmers are looking to conservation tillage program, and its advantages. No-till seeders, used to reseed pastures, conserve soil and water since the ground is always covered with sod. Production is mam tamed since the seeding is done in The Diamond Stacked Layer Cage System is available with your choice of three feeding systems the Flat Chain FBO Deep V or Link Chain And three watering systems troughs cups or nipples Doors are located on front of all cages Installation is fast and easy Three feeding systems vjWHi ★ FULL LINE PARTS DEPARTMENT ★ WE SELL SERVICE AND INSTALL Lancaster Farming, Saturday, April 25,1981—15 All too often changes are made in production and marketing programs without knowing what the effect will be on profits. A change may be made to reduce electric costs without considering or knowing what impact the change has on income. To meet today’s competitive challenge one must evaluate alternatives on the basis of their impact on profits, not on costs or mcome alone, Birth concludes. existing sod in the Fall. The sod is not plowed, disked and reseeded with a crop of small gram as in the past. No-till reseeding requires one or two trips across the field one for seeding, another if weed control is necessary. This is a tune saver for the farmer. Both no-till and chisel plowing present an opportunity to save time and get the crop planted more quickly in the Spring. Super High House Density Means Lower Investment Per Bird. For producers who want the maximum house density «n new facilities or converted buildings Diamond has developed the Stacked Layer Cage System This new system is available for deep pit houses and houses with pit scrapers or flat concrete slab Manure is deposited on rust proof fiber glass manure chutes under each tier of cages and removed automatically by a Diamond manure removal system proven over 12 years Eggs are collected automatically by a special high-capacity system designed for the Stacked System Plastic or woven fabric belts are available Let Diamond take you higher than anyone else in the business with the new Stacked Layer Cage System LET OUR EXPERIENCE WORK FOR YOU. SERVING THE POULTRY INDUSTRY OVER 20 YEARS.
Significant historical Pennsylvania newspapers