Chick sales are on track for a record-breaking year as egg prices drive more people to raise poultry in their back yards, Tractor Supply CEO says
Dominick Reuter/Business Insider
- Tractor Supply Co. is halfway through its annual baby chick sales event, with strong results so far.
- CEO Hal Lawton cited high egg prices as one factor making new customers try raising poultry.
- Still, home-raised eggs can ultimately be a lot more expensive than store-bought.
Egg prices are largely returning to earth, but the effects from their sky-high adventure are still rolling through the US.
Take Tractor Supply Co.'s annual baby chick sales event, which the company says it's halfway through and on track for a record-breaking year. The previous sales record in 2023 was more than 11 million birds.
"We're seeing continued momentum from our core customers, who are expanding their flock, alongside strong engagement this year from new customers," CEO Hal Lawton said on an earnings call Thursday.
Lawton added that many of these new customers were drawn to backyard poultry by high egg prices and a desire to "take more control of their food supply."
A spokesperson previously told Business Insider that the company is currently selling more than twice as many live birds as it did a decade ago, and it offers a wider selection of breeds.
However, as high as egg prices may go, home-raised eggs can ultimately be a lot more expensive than store-bought ones.
Average flock sizes are around 14 birds, Mizuho analyst David Bellinger found in his research into the topic. Each chick costs about $6 and takes about 18 to 22 weeks to mature enough to start laying eggs.
Several rescue agencies told BI earlier this year that they received numerous calls from people who didn't realize the costs and complications of raising hens (and the occasional unexpected rooster).
Yet when things go right, Lawton said it's good business.
Roughly one in five Tractor Supply customers own chickens, Lawton said, and the category represents a key source of revenue and loyalty for the rural lifestyle retailer.
"Chick days is like an annuity for Tractor Supply, as birds typically live five to seven years and the reccurring feed and supplies drive trips back to Tractor Supply," he said on the Thursday call.
Not only does one chicken eat more than 75 pounds of feed per year, Lawton said, but Tractor Supply customers tend to lavish their birds with fun toys to play with and $1,000 coops to roost in.
One Reddit user in a thread devoted to raising backyard chickens estimated the average startup cost to be around $750, but other commenters said that price savings aren't really the point.
"The main benefit of getting eggs from your own chickens is not cheaper eggs, it's better quality eggs than you'd find at the grocery store," a separate user said. "Chickens take a solid amount of investment!"