Thursday, February 26, 2015

Fantastic Financial Future via Pastured Poultry Profits Project ("PPPP")

There is a fantastic financial future for Small Flocker's through PPPP (Pastured Poultry Profits Project).

In yesterday's Blog posting (see Pastured Poultry Profits ), I outlined how Small Flocker's can adopt a perfect pastured poultry process.

OK, OK, enough on the alliteration.

Figure 1:   Small Flocker's PPPP with input
pricing similar to CFO's chicken factories
Today, we'll look at what will soon be possible through Small Flockers getting the same or similar pricing that the millionaire chicken factories enjoy.

Figure 1 shows the pro forma financial budget for Small Flocker's PPPP (Pastured Poultry Profit Project).  Right click on the image, choose "View Image", then click to magnify to full size.  Alternatively, you can view an Acrobat pdf version document here

This PPPP budget assumes:
  • Farmers raise all of their birds in one flock, minimizing catch and transport fees (Line 7).
  • Small Flockers in Ontario are allowed to raise 2,000 birds (as compared to the 300 birds/yr limit), see Line 18.
  • FCR (Feed Conversion Ratio) is 30% better than CFO's chicken factories, justified by a cleaner environment that allows birds a better utilization of the feed, and the grass and bugs they can eat as reducing the feed needed (Line 25).
What results is that Small Flockers earn a 30.31% higher profit margin than the millionaire chicken factory farmers (see Line 34).

Also, the retail customers of Small Flockers' PPPP chicken enjoy prices 11.79% below the current retail prices from the Chicken Mafia and their chicken factories and their retail partners (see Line 44).

This means local prosperity for the Small Flocker farmer and their community, and chicken that is more affordable for Ontario's consumers.

As described previously, this financial analysis covers only the direct variable costs, assuming the necessary capital infrastructure already exists, is fully paid for and fully depreciated, and PPPP is only an expansion of an existing chicken business. That may not be true in all cases.  For a more comprehensive financial analysis without these simplifying assumptions, see here and here.

I'm accepting the names of Small Flockers who are interested in finding out more about PPPP.  I have already joined SFPFC's PPPP, and hope you will join me.  There is strength when we work together to achieve this important project.

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