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Farm

In: Business and Management

Submitted By tmorledo
Words 2185
Pages 9
1. Product
The product analyzed herein is a of eggs, produced by "Gray Ridge Eggs". Specifically, they are “Reliable Regular Eggs”, in large size number 10, in a pack of 12. These eggs are laid by white leghorn hens which are born and raised in Canada, and offer an excellent source of protein, high nutrional value, great tase and convinence to daily living. These eggs are mainly found in grocery stores such as No Frills, Sobeys, Freshco and Walmart.

2. Ownership
The eggs are produced by Gray Ridge and the ownership belongs to L.H. Gray and Son Limited. They have been producing eggs since 1934 and the first egg grading station was established in Ridgetown, Ontario. L.H
Gray & Son is a family owned business and operated with Bill Gray as the president. It is also, part of an egg marketing alliance called, National Egg which markets specialty eggs and egg products nationally. All of Gray
Ridge products are marketed by the Heart and Stroke foundations health check programs, which helps consumer make safe choices. The company also offers different types of eggs including, organic, brown, white, Omega 3 and liquid eggs.

3. The supply chain
Step 1: Food Production
Gray Ridge Egg Farms picks eggs up at over 200 egg producers across South Western Ontario. These farms specialize in breeding and harvesting hens supplying Gray Ridge only quality egg. Once the eggs are picked up they are transported to a production plant either in Listowel or Strathroy. Gray Ridge than washes the eggs to sanitize them and then performs candling where an inspection process occurs where eggs are passed over a bright light where the interior quality of the egg is inspected. These eggs are than graded based on their solidity and interior quality. Grading stations must apply for licensing from the Canadian Government and must abide to the food safety and quality act of 2001.
Step 2: Transport and Trade
Gray ridge provides eggs locally to customers in Ontario, and have the Foodland Ontario symbol on their products to make people proud of buying local The facilities are located in, Strathroy and Listowel, Ontario.
They distribute products to markets though Windsor, Sarnia, London, Niagara Falls, Toronto, Timmins and
Sault Ste. Marie. At a Gray Ridge farm cooler, the eggs are put in categories in specific areas and when the shipping crew arrives they start loading the trucks. First, they build skids and then load those skid in the truck. Trucks are build based on the last store on that route and the first store. After the trucks have been loaded, they go towards the deliveries.
Step 3: Food Processing
Egg processing in Canada is regulated by the Canadian Food Inspection Agency, leaving all federally inspected businesses and those being imported into Canada from around the world (Canadian Food
Inspection Agency). Eggs are processed using the following steps and can occur in line (same location separate facility) or off line (different location and facility). First is receiving, where eggs are received and held in a refrigerator until ready to be graded in a separate area. Second is cleaning, using warm water and sanitizing solution. The eggs are washed to remove dirt, feces, and other bacteria. The eggs are then dried to remove excess water which prepares them for the next step. Third is grading, candling is a process that exposes the eggs to a bright light which can aid in identifying internal bleeding, the quality of the yolk and the quality of the egg white as well as air cell size. Checks are conducted on the strength, texture and physical appearance of the egg using candling and tapping of the egg which signals healthy egg shell conditions. Fourth is weighing, In Canada, eggs are subject to weight requirements in order to adhere and qualify for the categories as follows: jumbo size, extra large, large, medium, small and peewee. Fifth is packing, where eggs are carefully handled and packed into their respective grade and size containers. It is now that eggs are labeled with the lot number and registration number for quality control as well as best before date. The last step is storage, where eggs are stored in a cooled refrigerator until ready to be transported to the retailers.
Step 4: Food Retailing
When the Gray Ridge eggs are packaged to be distributed, they are either distributed directly to retailer, food service operators or indirectly to wholesale markets. Wholesalers are involved in selling products to those who buy for resale or for business use. The wholesalers obtain the eggs from central wholesale markets, merchants, and local country markets and sometimes they may have their own storage facility. Central wholesale markets usually receive the eggs from large farms or country markets. In urban areas, Gray Ridge eggs are usually sold through retailers such as grocery stores. There are four types of retailers who carry eggs. First are general food stores and supermarkets which sell all kinds of food. Second, independent retailers which includes butcher shops, community farmers and meat markets where all types of meat and eggs are sold. Third involves, farm-gate or poultry shops where only eggs and poultry are available. Lastly, food shops which specialize in only selling eggs largely for tourist trade. The eggs are also distributed to food services operators from either retail or wholesalers. From food service operators, they are delivered to restaurants which includes cafes, bistros, fast-food, and dining.
Step 5: Food Marketing
Egg Farmers of Ontario is executives an overall marketing strategies for egg farmers in Ontario. Local farmers and various smaller campaigns create amplifies the overall marketing strategies. Marketing strategies are focused on the following:
• Educating consumers on how to incorporate eggs in various ways into their eating habits.
• Educating and showcasing to consumers the supply chain of eggs, showcasing the journey of the egg from local farms to retailers.
• Building an emotional appeal to consumers by introducing Farmers or key players from an egg farm

Atifa Asif, Hadia Amer, Waqas Ali, Samantha Memedoska, Vicotor Mo
4/5 The agricultural commodity and the associated commodity and marketing associations
Data from statistics Canada shows that Egg production totaled 697.8 million dozen in
2015, an increase of 4.8% compared to 2014. The value of egg sales increased 5.6% to
$1.2 billion (Statistics Canada, 2016). The data can be interpreted as a growth in the demand of eggs both from home consumption, and for use in various forms by companies and is suggestive that this agricultural commodity is demanded. Associated commodities of eggs are some medications, Diprivan, certain vaccines, paints, and medications (Food Allergy Canada). It can be anticipated that rise in the demand for the aforementioned materials would imply a rise in demand for eggs and consequently poultry. The steady rise in demand of eggs is concerning and may result in the farmers increasing need increase productivity. In doing so, farmer may employ strategies that are non-ethical and exploitative with economic gain in mind. It is important to consider the ethical constraints on the rise in demand of agricultural commodities of all forms and their impact to the environment as increasing amounts of resources are used. The end product of Gray Ridge Farm eggs is tailored to the consumers needs.
The eggs are graded using a letter scale which is monitored by the Canadian Food
Inspection Agency to insure quality control and health safety. Eggs of the A grade are shipped to retailers and sold to consumers, eggs rated B grade are shipped to baking companies and other manufacturers to produce other products, for example, mayonnaise. Eggs graded with the letter C are used for chemical processing (Gray
Ridge Farms). Each of the above varieties offer different nutritional values which are available to adhere to market demands. The eggs are subject to quality control checks that aim to ensure the highest quality of eggs are available for human consumption.

Gray Ridge egg farm is a member of many marketing associations. One of them being is National Egg alliance which focuses on marketing speciality eggs and egg products under the brand name GoldEgg on a national level.
Gray Ridge is one of the founding members of GoldEgg. This membership with the National Egg alliance combines the strength of major egg graders for research, new product development and promotional initiatives across
Canada allowing the Provincial companies to take advantage and benefit from national marketing. Other marketing associations include Ovale eggs who are Eastern Canadas leading egg graders and distributers, Food land
Ontario who promote and support the consumption Ontario produce and processed agricultural foods, Golden valley who are the largest grading station and wholesaler of shell and processed eggs in the British Columbia market and lastly (L.H. Gray & Son Limited, 2009) the Heart and Stroke
Foundation that asses the products of their members reviewed by foundation dieticians to meet specific nutrient criteria based on Canada’s food guide (Heart & Stroke Foundation ,2007). These marketing associations focus on adding value to the egg products by promoting their quality, health benefits and safety. Through effective product promotions by the marketing associations, companies like Gray Ridge label their products or include symbols such as the health and stroke foundation symbol as a part of their production process in the supply chain to present their products to consumers as reliable, safe and healthy.
Chart from the EFC
Annual Report 2015.

6 Consumer price
Prices of eggs are determined by the grade and size of the eggs produced. Egg Farmers of Ontario (EFO) and Egg farmers of Canada (EFC) created a process and grading system to help farmers price their eggs and ensure it’s consistent across the board. The average cost of Gray Ridge eggs are approximately 0.31 cents per egg. The gross profit margin per egg would be roughly 0.15 per egg or 1.80 per dozen of eggs.
Another major factor that impacts profit margins of eggs, aside from equipment and building overhead costs, is the cost of feed consumed by the chickens. According to EFO, the cost of feed is accountable for approximately three quarters of the production cost at the farm. Critically, there are many other factros accountable for changes in consumer price. Disease among the species may influence cost, supply and demand, consumer habits and changes in the cost of the agricultural commodity.

7. How sustainable?
The production of Gray Ridge Eggs is environmentally sustainable, as the chickens are brought up in a sustainable farm and fed a healthy diet of corn, soybean meal, vitamins and minerals. Once eggs are produced, certain measure are taken to examine the egg for any defects, such as candling. The eggs are also graded based on the solidity and quality, to make sure consumers are satisfied with their product. The Gray
Ridge company also abides by the food safety and quality act. All the eggs farmers of Canada including
Gray Ridge partner up with Bullfrog Power, so that their generators put 100% green electricity and green natural gas onto the energy system, to match the amount of electricity and natural gas used by the EFC offices (Bullfrog Power). This help the egg farmers to stay environmentally sustainable and friendly, and to avoid any waste produced. Bullfrog's green electivity comes from a blend of wind and low-impact hydro power. The green natural gas is a climate-friendly alternative to conventional, polluting natural gas.
Through this technology, biogas is captured, cleaned up, and put onto the national natural gas pipeline, displacing fossil fuel-based gas and reducing CO2 emissions into the atmosphere. This helps the eggs to not just taste better, but it allows an environment sustainable process of producing eggs.

REFERENCES
Gray Ridge partnered up with Bullfrog power.

Weight of the eggs

Gray Ridge eggs in the cooler ready to be delivered. Chart from the EFO
Annual 2015 report.

Commodity Futures Trading Commission. (n.d.). Retrieved June 16, 2016, from http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/acd_factsheet_finalp df
Eggs - Food Allergy Canada. (n.d.). Retrieved June 16, 2016, from http://foodallergycanada.ca/about- allergies/food-allergens/eggs/
Egg Grading - Canadian Food Inspection Agency / Sélection de la langue - Agence canadienne d'inspection des aliments. (n.d.). Retrieved June 15, 2016, from http://www.inspection.gc.ca/food/information-for-consumers/fact-sheetsandinfographics/specific-products-and-risks/dairy-eggs-and-honey/egg- grading/eng/1332271593213/1332271655324
FAQs Archive - Egg Farmers of Canada. (n.d.). Retrieved June 15, 2016, from http://www.eggfarmers.ca/faq/ Gray Ridge Egg Farms - Production. (n.d.). Retrieved June 15, 2016, from http://www.grayridge.com/wisecracks-production.php Poultry and egg statistics, March 2016 and annual 2015. (2016, May 27). Retrieved June 16, 2016, from http://www.statcan.gc.ca/dailyquotidien/160527/dq160527a-eng.htm
Processing. (n.d) Oxford Dictionaries - Dictionary, Thesaurus, & Grammar online. Retrieved June 15, 2016, fromhttp://www.oxforddictionaries.com/
United States, United States Department of
Agriculture. (2000). Egg-grading manual (Vol. 75). Washington, D.C.: U.S. Dept. of Agriculture,
Agricultural Marketing Service.
Egg Farmers of Canada Annual Report 2015 (2015): n. pag. Web. 16 June 2016.…...

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