2011 Midwest Egg Farmer Pay Price

PAY PRICE PRINCIPLE:
The Midwest Egg Pool is no longer paid on a per ounce basis. Instead, producers are now paid for their eggs based on an average stack weight. With the new system, we are incentivizing farmers to target a large dozen, reflecting our greatest sales, rather than pushing egg size for a greater pay price (even with the former stack weight penalty).

Stack Weight

Ave. USDA Size

Price per Dozen

< 19.7 lbs

Small

$0.33

19.7- 22.49 lbs

Medium

$1.62

22.5- 25.09 lbs

Large (Premium Price)

$1.92

25.1- 26.59 lbs

Extra Large

$1.82

26.6- 27.59 lbs

Jumbo

$1.42

> 27.6 lbs

Ungradeable/Unpackable

$0.90

 

 

 

Omega premium- $0.22/dozen (nest run) to qualified Omega-3 producers

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.

Hauling: There will be a $5.00 stop charge per week for CROPP Egg Producers.