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Egg Profit Calculator

Item Type text; Book

Authors Embleton, H.

Publisher College of Agriculture, University of Arizona (Tucson, AZ)

Download date 06/06/2018 17:19:29

Link to Item http://hdl.handle.net/10150/212311

http://hdl.handle.net/10150/212311

BULLETIN 180 MARCH. 1942

rG PROFIT CALCULATOR

BY

H. EMBLETOitT

Agricultural Expe invent Station,University of Ari=zona, Tucson

ORGANIZATION

BOARD OF REGENTS

Sidney P. Osborn (ex- officio) Governor of ArizonaE. D. Ring, B.A. (ex- officio) State Superintendent of Public InstructionAlbert M. Crawford, B.S., President PrescottWilliam H. Westover, LL.B YumaMartin Gentry, LL.B WillcoxCleon T. Knapp, LL.B., Treasurer TucsonJack B. Martin, Secretary TucsonM. O. Best PhoenixClarence E. Houston, LL.B. TucsonMrs. Joseph Madison Greer, B.A Phoenix

Alfred Atkinson, D.Sc President of the UniversityEXPERIMENT STATION STAFF

Paul S. Burgess, Ph.D Dean and DirectorRalph S. Hawkins, Ph.D Vice -Dean and Vice- Director

POULTRY HUSBANDRY DEPARTMENT

Harry Embleton, B.S Poultry HusbandmanHubert B. Hinds, M.S Associate Poultry Husbandman

EGG PROFIT CALCULATOR

BY H. EMBLETON

INTRODUCTION

A feed -egg ratio is the number of dozens of eggs at currentprices it will take to buy 100 pounds of complete ration at currentprices.

Example: Eggs 35 cents a dozen divided into feed at $2.50 for 100pounds of complete ration = feed -egg ratio of 1 : 7.1

The feed -egg ratio is generally accepted as a measuring stickfor profits from egg sales, as it deals with the largest item of over-head, feed cost, which incidentally is also the most fluctuatingitem of cost of any of the factors of overhead, and the vital factorof the selling price of eggs. The feed cost is generally consideredto be 60 per cent of the entire overhead of egg production.

Although the feed -egg ratio is generally considered a measur-ing stick, there has been no information forthcoming whichwould indicate the feed -egg ratio which would be a division be-tween profitable and unprofitable egg production. With a viewof ascertaining just what feed -egg ratio would act as a dividingline the writer has made many calculations and comparisonswhich are enlightening and are set forth herewith.

DISCUSSION

In order to have a beginning point certain factors had to beassumed. These assumed factors follow:

1. Feed cost 60 per cent of entire overhead.2. Remaining overhead of depreciation, interest, replacement

of flock, transportation, water costs, etc., 40 per cent.3. Feed consumption per bird per year, 80 pounds.4. Eggs laid per bird per year, 12 dozen.5. Egg prices used here refer to prices received by the pro-

ducer, and are equivalent to wholesale prices.Using the above assumed conditions, Table 1 was established.

In this table, which incidentally represents the average circum-stances under which the majority of eggs is produced, the fol-lowing information is set forth:

1. A range of egg prices per dozen to the producer.2. A range of feed prices per 100 pounds of complete ration.3. A range of feed -egg ratios based on the first two factors.4. Feed cost per hen per year.5. Total overhead cost per hen per year.6. Total receipts per hen per year.7. Net profit per hen per year.Table 1 can be used to find what the net profit per bird per year

will be within the price ranges of feed and eggs set forth in thistable.

409

410 EXPERIMENT STATION BULLETIN 180

TABLE 1. - PRICE PER DOZEN EGGS, PRICE OF 100 POUNDS OFFEED FOR COMPLETE RATION, FEED -EGG RATIOS, FEED COSTPER BIRD, TOTAL OVERHEAD COST, TOTAL RECEIPTS, AND NET

PROFITS WITHIN THE RANGES INDICATED.*

1 2 3 4 5 6 7

Per Cwt. Feed -egg Feed cost Total Total Net profitdoz. feed ratio bird cost receipts or loss

$4.65 1 : 7.7 $3.72 $6.20 $7.20 +$1.003.75 1 : 6.2 3.00 5.00 7.20 + 2.203.50 1 : 5.8 2.80 4.66 7.20 + 2.543.25 1 : 5.4 2.60 4.33 7.20 + 2.873.00 1 : 5.0 2.40 4.00 7.20 + 3.20

Eggs 60c 2.75 1 : 4.6 2.20 3.66 7.20 + 3.542.50 1 : 4.2 2.00 3.33 7.20 + 3.872.25 1 : 3.7 1.80 3.00 7.20 + 4.202.00 1 : 3.3 1.60 2.66 7.20 + 4.541.75 1 : 2.9 1.40 2.33 7.20 + 4.871.50 1 : 2.5 1.20 2.00 7.20 + 5.20

Eggs 55c

4.20 1 : 7.6 3.36 5.60 6.60 + 1.003.75 1 : 6.8 3.00 5.00 6.60 + 1.603.50 1 : 6.3 2.80 4.66 6.60 + 1.943.25 1 : 5.9 2.60 4.33 6.60 + 2.273.00 1 : 5.4 2.40 4.00 6.60 + 2.602.75 1 : 5.0 2.20 3.66 6.60 + 2.942.50 1 : 4.5 2.00 3.33 6.60 + 3.272.25 1 : 4.1 1.80 3.00 6.60 + 3.602.00 1 : 3.6 1.60 2.66 6.60 + 3.941.75 1 : 3.2 1.40 2.33 6.60 + 4.271.50 1 : 2.7 1.20 2.00 6.60 + 4.60

Eggs 50c

3.75 1 : 7.5 3.00 5.00 6.00 + 1.003.50 1 : 7.0 2.80 4.66 6.00 + 1.343.25 1 : 6.5 2.60 4.33 6.00 + 1.673.00 1 : 6.0 2.40 4.00 6.00 -I. 2.002.75 1 : 5.5 2.20 3.66 6.00 + 2.342.50 1 : 5.0 2.00 3.33 6.00 + 2.672.25 1 : 4.5 1.80 3.00 6.00 + 3.002.00 1 : 4.0 1.60 2.66 6.00 + 3.341.75 1 : 3.5 1.40 2.33 6.00 + 3.671.50 1 : 3.0 1.20 2.00 6.00 + 4.00

Eggs 45c

3.75 1 : 8.3 3.00 5.00 5.403.50 1 : 7.7 2.80 4.66 5.403.30 1 : 7.3 2.64 4.40 5.403.25 1 : 7.2 2.60 4.33 5.403.00 1 : 6.6 2.40 4.00 5.402.75 1 : 6.1 2.20 3.66 5.402.50 1 : 5.5 2.00 3.33 5.402.25 1 : 5.0 1.80 3.00 5.402.00 1 : 4.4 1.60 2.66 5.401.75 1 : 3.9 1.40 2.33 5.401.50 1 : 3.3 1.20 2.00 5.40

+ 0.40+ 0.74+ 1.00+ 1.07+ 1.40+ 1.74+ 2.07+ 2.40+ 2.74+ 3.07+ 3.40

EGG PROFIT CALCULATOR 411

TABLE 1.-Continued.

Per Cwt. Feed -egg Feed cost Total Total Net profitdoz. feed ratio bird cost receipts or loss

Eggs 40c

3.75 1 : 9.4 3.00 5.00 4.80 - 0.203.50 1 : 8.7 2.80 4.66 4.80 + 0.143.25 1 : 8.1 2.60 4.33 4.80 + 0.473.00 1 : 7.5 2.40 4.00 4.80 + 0.802.85 1 : 7.1 2.28 3.80 4.80 + 1.002.75 1 : 6.9 2.20 3.66 4.80 + 1.142.50 1 : 6.25 2.00 3.33 4.80 + 1.472.25 1 : 5.6 1.80 3.00 4.80 + 1.802.00 1 : 5.0 1.60 2.66 4.80 + 2.141.75 1 : 4.4 1.40 2.33 4.80 + 2.471.50 1 : 3.75 1.20 2.00 4.80 + 2.80

3.75 1 :10.7 3.00 5.00 4.20 - 0.803.50 1 :10.0 2.80 4.66 4.20 - 0.463.25 1 : 9.2 2.60 4.33 4.20 - 0.133.00 1 : 8.6 2.40 4.00 4.20 + 0.202.75 1 : 7.8 2.20 3.66 4.20 + 0.54

Eggs 35c 2.50 1 : 7.1 2.00 3.33 4.20 + 0.872.40 1 : 6.9 1.92 3.20 4.20 + 1.002.25 1 : 6.4 1.80 3.00 4.20 -}- 1.202.00 1 : 5.7 1.60 2.66 4.20 + 1.541.75 1 : 5.0 1.40 2.33 4.20 + 1.871.50 1 : 4.2 1.20 2.00 4.20 + 2.20

Eggs 30c

3.75 1 :12.5 3.00 5.00 3.60 - 1.403.50 1 :11.6 2.80 4.66 3.60 - 1.063.25 1 :10.8 2.60 4.33 3.60 - 0.733.00 1 :10.0 2.40 4.00 3.60 - 0.402.75 1 : 9.2 2.20 3.66 3.60 - 0.062.50 1 : 8.3 2.00 3.33 3.60 + 0.272.25 1 : 7.5 1.80 3.00 3.60 + 0.602.00 1 : 6.6 1.60 2.66 3.60 + 0.941.95 1 : 6.5 1.56 2.60 3.60 + 1.001.75 1 : 5.8 1.40 2.33 3.60 + 1.271.50 1 : 5.0 1.20 2.00 3.60 + 1.60

3.75 1 :15.0 3.00 5.00 3.00 - 2.003.50 1 :14.0 2.80 4.66 3.00 - 1.663.25 1 :13.0 2.60 4.33 3.00 - 1.333.00 1 :12.0 2.40 4.00 3.00 - 1.00

Eggs 25c 2.75 1 :11.0 2.20 3.66 3.00 - 0.662.50 1 :10.0 2.00 3.33 3.00 - 0.332.25 1 : 9.0 1.80 3.00 3.00 0.002.00 1 : 8.0 1.60 2.66 3.00 + 0.341.75 1 : 7.0 1.40 2.33 3.00 + 0.661.50 1 : 6.0 1.20 2.00 3.00 + 1.00


TABLE 1.- Continued.

Per Cwt. Feed -egg Feed cost Total Total Net profitdoz. feed ratio bird cost' receipts or loss

3.75 1 :18.7 3.00 5.00 2.40 - 2.603.50 1 :17.5 2.80 4.66 2.40 - 2.263.25 1 :16.2 2.60 4.33 2.40 - 1.933.00 1 :15.0 2.40 4.00 2.40 - 1.602.75 1 :13.7 2.20 3.66 2.40 - 1.262.50 1 :12.5 2.00 3.33 2.40 - 0.93

Eggs 20c 2.25 1 :11.2 1.80 3.00 2.40 - 0.602.00 1 :10.0 1.60 2.66 2.40 - 0.261.75 1 : 8.7 1.40 2.33 2.40 + 0.071.50 1 : 7.5 1.20 2.00 2.40 + 0.401.25 1 : 6.2 1.00 1.66 2.40 + 0.741.05 1 : 5.2 0.84 1.40 2.40 -I- 1.001.00 1 : 5.0 0.80 1.33 2.40 -I- 1.07

3.75 1 :25.0 3.00 5.00 1.80 - 3.203.50 1 :23.3 2.80 4.66 1.80 - 2.863.25 1 :21.7 2.60 4.33 1.80 - 2.533.00 1 :20.0 2.40 4.00 1.80 - 2.202.75 1 :18.3 2.20 3.66 1.80 - 1.86

Eggs 15c 2.50 1 :16.6 2.00 3.33 1.80 - 1.532.25 1 :15.0 1.80 3.00 1.80 - 1.202.00 1 :13.3 1.60 2.66 1.80 - 0.861.75 1 :11.6 1.40 2.33 1.80 - 0.531.50 1 :10.0 1.20 2.00 1.80 - 0.201.25 1 : 8.3 1.00 1.66 1.80 -I- 0.141.00 1 : 6.6 0.80 1.33 1.80 + 0.470.60 1 : 4.0 0.48 0.80 1.80 -I- 1.00

*Underscored relationship is the one which will assure $1 net profit per birdper year.

The original problem was to find if there was a feed -egg ratiothat would act as a division between profit and loss. In an attemptto establish such a point, feed -egg ratios were established forvarious ranges of egg and feed prices which would assure a netprofit of $1 a bird a year (Fig. 1). When this was done it wasfound that the feed -egg ratio was not fixed at a definite pointwhich marked the division between profit and loss, but variedfrom 1 : 4.0 to 1 : 7.7 with eggs ranging in prices per dozen from15 cents to 60 cents wholesale and feed ranging from 60 cents to$4.65 per 100 pounds of complete ration, and that with an advancein feed price if there was an advance in egg price the feed -eggratio could also be wider and still assure a net profit of $1 a yearper bird.

It was also found that an advance in egg price of 5 cents a dozenwould offset an advance in feed price of 45 cents.

Figure 2 shows that with feed prices for a complete rationconstant at $2 per 100 pounds, the net profit increased 60 cents abird with each advance of 5 cents in the price of eggs per dozen

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.50Wa .45

.40

.35

.30

.25

.20

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.60 IA5 1.50 1.95 240 2.85 3.30 3.75 420 4.65

''RICE FEED PER IOOLBS. FOR COMPLETE

RATIONFigure 1. -A comparison of feed prices, prices of eggs per dozen, and feed -egg ratios to assure a net profit of $1 a bird a year.

and that with any constant feed price this same relationship heldtrue (see Table 1).

Figure 3 indicates that the net profit per bird per year de-creased approximately 331/3 cents with each 25 -cent increase infeed price when the egg price was at a constant level and thatthis same relationship existed with any given egg price level.

That there is a wider range in the feed -egg ratios with feedsfrom $1.50 to $3.75 a hundredweight with low egg prices comparedwith high -priced eggs is quite evident from Figure 4. With eggsat 60 cents a dozen to the producer, there is a variation of only3.7 in the feed -egg ratios, while with eggs at 15 cents a dozen thevariation is 15 for the same price range in feeds. This would indi-cate that price changes in feeds from $1.50 to $3.75 a hundred-


(l)C9coW 50

60 0

55e

45

40

35

30

25

20 0/

Q4 604

PRICE

-26 .34 .94

NET PROFITS PER BIRD PER YEAR

Figure 2. -A comparison of net profits with egg prices, the price of 100pounds of complete ration costing $2.

OF FEED 42D0 PE R CW

0_ 60¢ 60¢ 6o 6O 60 0

L54 2.14 2.74 334 3.94 4.54

weight are not as serious from the standpoint of feed -ekg ratioswhen eggs are high in price as they would be with low- pricedeggs.

TABLE 2.- VARIOUS FEED CONSUMPTIONS (IN LBS.) FORDIFFERENT RANGES OF EGG PRODUCTION.

Eggrange

Numberbirds

Av. eggsper bird

Av. feedper bird

Feed con-sumed perdoz. eggs

Light breeds125-150*151-175*

137162

7075

7.56.2

176-2001' 93 194 81 5.0201-225t 81 210 84 4.8226-250t 170 239 89 4.5251-275j- 46 257 92 4.3


TABLE 2. Continued.

Eggsrange

Numberbirds

Av. eggsper bird

Av. feedper bird

Feed con-sumed per

doz. eggs

Heavy breeds

125 -150*151 -175*

137162

7682

8.06.8

176-200f 93 185 88 5.7201-225f 127 213 92 5.2226-250f 61 237 96 4.8251 -275t 24 255 98 4.4

*Estimates based on data from Arizona Egg Laying Tests.¡Data taken from results in the Arizona Egg Laying Tests.

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134-

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PRICE EGGS 354- T D THE PRODU ER

C--- 0 O O o o

41.50 1.75 2.00 225 2.50 275 3.00 325 3.50 3.75

PRICE PER 100 LBS. OF COMPLETE RATION

Figure 3. -A comparison of net profits with increases of 25 cents in feedprices for 100 pounds of complete ration with egg prices constant at 35cents a dozen to the producer.


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60

551

50¢

45¢

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RANGE IN

FEED- EGG RATIO

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11.50 L75 2.00 2.25 2.50 2.75 3 00 3.25 3.50 3.75

PRICE PER 100LB3. COMPLETE RATION

Figure 4. -A comparison of varying prices of feed and eggs to feed -eggratios.

Net profits in Table 1 are based upon a yearly feed consump-tion of 80 pounds per bird a year for a fowl laying 144 eggs ayear. From Table 2 it is evident that this is a generous feedallowance. Adjustments for feed allowances for other egg rangescan be made from the information in Table 2.


Adjustments in net profits for egg productions per bird a yearother than 144 eggs can be made with the use of Table 1. Forexample, with an average egg production of 120. eggs with eggprices at 35 cents a dozen the gross income would be $3.50 insteadof $4.20.

If, instead, the average egg production per bird a year was 204eggs, the gross income would be $5.95 instead of $4.20.

SUMMARY

1. There is no one feed -egg ratio which divides profit and loss.2. Feed -egg ratios which assure a net profit of $1 a bird a year

vary from 1 : 4 to 1 : 7.7 as the price of feed advances from60 cents to $4.65 per hundredweight, and eggs advanced from 15cents to 60 cents a dozen to the producer.

3. An advance of 5 cents a dozen in eggs will absorb an in-crease in feed price per hundredweight of 45 cents.

4. An advance of 5 cents a dozen in eggs increases the net profit60 cents a bird a year at a given feed price level.

5. An advance of 25 cents in feed will decrease the net profitper bird per year 33% cents with a constant egg price per dozen.

6. The higher the price per dozen eggs the less the range infeed -egg ratios at a given egg price with feed ranging in pricefrom $1.50 to $3.75 for each 100 pounds of complete ration.

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