[Market-farming] cost of sales
mf at austinfarm.org
Thu Feb 3 08:17:00 EST 2005
On Thu, Feb 03, 2005 at 07:37:12AM -0500, Robert Farr - The Chile Man wrote:
> As a value-added producer, I'm going to have to weigh in here.
> No comment on the cost argument, but transforming my produce into salsas
> and sauces makes me about 20x more than simply selling produce!
> We have a 40-gallon kettle, fitted with valves and spouts for easy
> hand-fill, and can fill up to 75 bottles/hour, including prep, cooking,
> and clean-up time.
Perhaps you will comment further on processing costs?
This past season, I had some blackberry jelly made by a custom
processor. Extra ingredients, material, and processing cost was $2.50
per pint, value of berries was about $2 per pint. With an $.08 label
and some transportation and storage costs, I figure my cost is about
$5/pint. For $6 retail, I have $1.20 sales commission cost. So, a
retail of $6 is break-even or worse. The sole attractive point is
moving berries that otherwise would have been lost. $6 seems like a
pretty high price; I wonder if pints of jelly can be sold at $8 or $10?
$2.50 doesn't seem like too much for processing considering the
headaches and costs of maintaining a legal kitchen.
Willie, ONWARD! Through the fog!
http://counter.li.org Linux registered user #228836 since 1995
Linux system uptime 220 days 20 hours 08 minutes
More information about the Market-farming