The feasibility of operating a cooperative owned egg packaging facility around Alma, Georgia
Wolfe, Kent L.
McKissick, John C.
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The egg markets of the last few years have provided little or no egg profits. Many producers were able to continue operating due to previously negotiated contract payments. However, due to the current market some of the larger egg packing integrators have began renegotiating or terminating contract with egg producers. A group of producers in the Alma area who were previously contracted their eggs contacted the Center for Agribusiness and Economic Development to perform an economic and market analysis on operating an egg packing facility. This report examines the relevant economic issues surrounding packing eggs. The egg producers wished to investigate four different scenarios regarding an egg packing facility. Each of the four scenarios has two capacities, one capacity uses 1.3 million birds and the other uses 500,000 birds. The four scenarios are: (1) new packaging equipment and feed mill, (2) new packaging equipment and purchasing feed, (3) used packaging equipment and feed mill, and (4) used packaging equipment and purchasing feed. The study explored the economics of running a cooperative owned egg-packing unit from the puller stage up until the packing stage. The cooperative will have control of the pullets, layers, and packing facility.