Rising Egg Costs Prompt Backyard Poultry Boom, Breaking Chick Sales Records, Says Tractor Supply CEO

Although egg prices are gradually dropping, their recent surge has left a lasting impact across the United States.

Tractor Supply Co. is amidst its yearly chick sales promotion and predicts it will set new records. In 2023, they surpassed selling over 11 million chicks, marking a previous high.

"We're witnessing ongoing enthusiasm from our long-time shoppers who are growing their poultry numbers, coupled with substantial interest from newcomers," remarked CEO Hal Lawton during a recent earnings call.

Lawton pointed out that a significant number of these new customers are inspired by the soaring egg prices and a wish to exert more control over their food resources.

A representative informed Business Insider that the company’s current bird sales are more than double what they were ten years ago, with a broader variety of breeds available.

Despite the inflation in egg prices, raising chickens at home may still turn out to be costlier than buying eggs from the market.

Research by Mizuho analyst David Bellinger indicates that the typical poultry flock consists of around 14 birds, with each chick costing roughly $6 and needing between 18 to 22 weeks to reach egg-laying maturity.

Numerous rescue organizations mentioned earlier this year that they received many inquiries from individuals unaware of the expenses and challenges of raising hens, sometimes leading to surprise additions of unanticipated roosters.

Lawton maintained that when everything aligns properly, backyard chicken raising can be highly advantageous.

About 20% of Tractor Supply’s customer base keeps chickens, according to Lawton, making it a crucial segment driving both revenue and customer fidelity for the rural-oriented business.

"Chick Days are comparable to an annuity for Tractor Supply," he noted in the call, as chickens often live for five to seven years, requiring regular purchases of feed and other supplies, encouraging return visits to the store.

On average, a chicken consumes over 75 pounds of feed each year. Moreover, Tractor Supply clientele frequently indulge their chickens with entertaining toys and expensive coops reaching $1,000.

A participant on Reddit, discussing backyard chicken care, assessed startup expenses at approximately $750. Yet others in the conversation argued that the true incentive lies not in saving money but in obtaining superior quality eggs than those available in supermarkets.

Another user chimed in with, "The greatest advantage of home-laid eggs is superior quality, not reduced cost. Raising chickens is truly an investment!"