Marketing Definedin The Broader Sense

Most people define egg marketing as the physical action of trading eggs for a fee between a producer/packer and either a wholesaler or retailer.[1] Marketing, though, also includes a long list of associated activities including, but not limited to: processing (cleaning, grading, sizing, and packaging), regulatory supervision, buying and selling (at several levels), transportation, balancing of surpluses with deficits, price discovery, price reporting, promotion/ advertising, and egg export/import issues.[2]

Two examples are given here to illustrate the broad definition of marketing. In the first example, the first transfer of ownership is from the pure producer to a processor in another location. Eggs are sold unprocessed directly from the chicken house or farm cooler and transferred on plastic or pulp fiber filler flats (30 eggs per flat). In most cases, payment is based on the egg weight distribution determined in the processor plant, with different prices for each weight/grade category. The payment received, therefore, represents a blend of sizes and is termed a nest run or farm selling price.

In the second example, the first sale is for producers/ packers who produce and pack (process) their own eggs in an in-line system. Eggs are gathered on conveyor belts, which take the eggs directly to the processing plant for sizing, grading, and packaging. The first transfer of ownership is in the form of graded and packaged products. Payment in this case includes the cost of processing, packaging, and transportation, which is approximately 20 to 25 cents per dozen more than the unprocessed egg price for comparable egg weight classes. This price is considered to be the wholesale price of eggs more than the farm price, but less than the retail or consumer price.

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