Below is a brief excerpt from complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email email@example.com
Purveyors of live chicks, coops, and feed have seen sales jump by more than 500% during the quarantine period.
With corn prices at a low, more time at home, and egg prices spiking in April (the largest increase in the CPI food report) now would seem to be a great time to raise your chickens.
Traci Torres, the owner of My Pet Chicken, a hatchery in Monroe, CT, said that during the 1st week of March, sales were down 2% YOY, but by the 4th-week sales had increased to 500%+. “We have maintained that through April.
Things have started to slow down, but only because there’s nothing left to sell.” Maybe your interest is in environmental sustainability or teaching children about animals and food, or you prefer the taste of “freggs” (fresh eggs in industry-speak).
Still, the savings probably does not offset the time for most of us (including cleaning up after the birds). It costs about $35 a month to keep six chickens fed and bedded.
The start-up costs are also not insignificant, as seen below. In comparison, a flock of six chickens will produce about 15 dozens each month while conventional eggs at the supermarket are priced between $2-3 a dozen.