2011 Kalona, IA Egg Producer Pay Price

PAY PRICE PRINCIPLE:
The CROPP Producers have elected to have a stable Pay Price not connected to the conventional pay price. The CROPP Producers, through the Egg Pool and the Egg Executive Committee, have determined this pay structure because they feel it is the fairest to all producers and reflective of the performance of the business. The Cooperative makes all efforts to meet the established budget base price; however, the price can be adjusted by the Board of Directors and the Egg Executive Committee if the actual financial performance of the co-op requires it.

Average Price Per Dozen Eggs for 2011 Budget:
Kalona, IA Egg Pool members are paid according to their egg gradeout. Producers are paid the following prices per each dozen shipped:

Medium

$1.58/dozen

Large

$1.91/dozen

Extra Large

$1.88/dozen

Jumbo

$1.76/dozen

Super Jumbo

conventional
market value

Checks and Cracks

conventional
market value

Small

conventional
market value

Omega Premium

$0.28/dozen for qualified
Omega-3 large
and extra large eggs

Due to the high cost of feed there is a $.10 per dozen MAP (market adjusted premium) on current pay price that is in effect 8/01/2011 and is subjected to review or removal on 12/31/2011.  

Egg Pool Capital Base Plan:
To meet the requirements of the Egg Pool Capital Base Plan, CROPP farmers are required to purchase preferred stock equivalent to 5.5% of their annual base gross income. Calculation of this is based on:

  1. the current pay price established by the CROPP Egg Pool,
  2. the assumption that the Member can expect 22 dozen saleable eggs per bird per year,
  3. the Member's established production base.

CROPP has determined that each producer invest $2.18 in equity per bird. Preferred stock is purchased in $50.00 increments and receives 8% interest annually, to be paid as a dividend or reinvested in preferred stock. The producer and CROPP will analyze the previous year's production and arrive at a pay price that will be used to determine 5.5% of annual base gross income. One of the following methods will be used to fulfill the CROPP equity contribution:

  1. The producer will purchase preferred stock equivalent to 5.5% of annual base gross income prior to first egg shipment with CROPP Cooperative. A producer can reach their equity requirement by investing $2.18 per bird towards preferred stock.
  2. The producer can elect to take a $.10/dozen check off until their equity contribution is met. Interest will not accrue however until the total equity contribution is met.