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Fuel increase of R3 – Price of eggs to increase by R55 per box

In this article you will learn how the fuel price affects the price of eggs. You will also learn why this is not alarming for GroSpace Partners. Lets start off with assessing the price of eggs, shall we:

What is the price of eggs?

GroShop vendors can buy boxes of eggs at R555 and then sell these boxes of eggs to retailers through their GroShop at a recommended price of R610.50. This price increase is directly caused by the increase in fuel levies

What has the price of fuel got to do with the price of eggs?

The price of feed for our farmers went up from R295 to R330 on Wednesday the 1st of June. This is a direct price hike of 11%. This came as a result of the fuel increase of R3 on the 1st of June from R21.80 to R24.80 which represents 12%. Where is the extra 1%? Read more below about VAT.

What has this got to do with the price of eggs?


The increase in fuel has a direct correlation with the price of feed. A box of eggs which was previously costing GroShops R500 is now R555 at cost. Eggs are zero rated for VAT.

The recommended wholesale of a box of eggs to retailers was R550 last week and now it should be 11% higher at R610.50 per box. This was caused by a fuel increase of 12%.

Why has the fuel price increased so much?

This is how the government is taxing people. Fuel is comprised of a 50% tax. Basically the Goverment is taxing the South African people for all of the handouts the government gave during 2020 and 2021 to support COVID relief. Ths is the backlash casued by the closure of the South African economy. This is called a tax deficit. Politicians do not enjoy tax deficits because this leads to fewer jobs and lower salaries. This is where the reserve bank steps in.

What does the reserve bank have to do with higher fuel prices?

The reserve bank prints money to compensate for the shortage of funds in the government accounts. When the economy was closed, the reserve bank handed out money that the reserve bank printed. This is called quantitative easing. Quantitative easing causes an over supply of money in circulation. This means that there is more money in circulation than there should be to balance out the reserve bank’s accounts.

How does the reserve bank balance the accounts?

The reserve bank increases the repo rate. The repo rate has increased by 0.5%. This forces government to pay back higher tariffs for the money that the government lent from the reserve bank. The money that was printed by the reserve bank was handed out to the people. The government increases the tax income by increasing VAT and fuel levies. VAT was increased by 1%. Fuel has increased by 12% this month.

The Minister of Finance announced in February 2018 that Value Added Tax will increase from 14% to 15%. This increase took effect on 1 April 2018. All transversal contract prices have been adjusted and contract circulars have been updated accordingly to reflect the 15% Value Added Tax increase. 01 Nov 2018

http://www.treasury.gov.za/divisions/ocpo/ostb/contracts/VAT%20INCREASE%20NOTICE.pdf

Over the past 12 years the price of a litre of fuel has more than doubled, from R10.43 for 93 octane petrol at the time. Now, in what must surely be one of the toughest financial environments in recent times, we face paying more than R25/lafter an increase of between R2.27 and R2.36 per litre for petrol, which is on the cards from June 1.Fuel increased fuel levies by 12%

https://www.businesslive.co.za/bd/opinion/2022-05-31-neil-roets-whatever-the-fuel-price-hike-it-will-be-a-catastrophe/

How does closing the economy affect the government

When the economy is closed, the government makes no money. All of the tax that would have been earned from fuel is now being reclaimed through higher fuel prices. We are going through an economic collapse and it is time to invest in sustainable farming.

What do I do to avoid this catastrophe?

Farm the GroSpace way – it’s time to lower our dependence on petrol and diesel.

Secure your future sustainably.

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Prospective GroSpace – The Old Mill @ Happy Acres

GroSpace - Logo

Hi Lynn

This is a post to track our communications and to document our project plan as it grows so that we can plan resources efficiently. Changes cost time and money. Best we follow a sound plan with measurable deadlines.

The relationship roles as I see them are as follows:

  • Roland – Project Manager for the development of a regenerative agricultural GroSpace at the Old Mill
  • GroSpace – Online market for purchases and sales of all finished products that are produced through the farming operations at The Old Mill
  • Lynn – Franchise Financier (A financier is a person, company, or government that provides money for projects or businesses.) Lynn to pay for the rollout of the GroSpace project at The Old Mill.
  • Happy Acres – Accommodation for youth camps oriented around sustainability, regenerative agriculture and nature appreciation.
  • NPO – funding for trained agriculture graduate labour program
  • The Old Mill – Physical GroSpace for farming and practical training which will be run for profit. The Old Mill will be registered on GroSpace as a verified vendor.

The skeleton for the project plan can be found here:
Project Plan

If you found this interesting and you would like to turn your space into a GroSpace then use the form below to apply.

Fill in the form below to apply for your GroSpace franchise today

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GroSpace – Benefits of the partner network

GroSpace - benefits Partner Network 2

If you are part of the partner network you will benefit from the following:

GroChick is the integrated poultry subsidiary of GroSpace. GroChick sells fertile broiler eggs at R3 directly to the partner network. GroChick offers a buy-back policy whereby GroChick buys back the day-old chicks at R5.50. You only need to place your egg orders when GroChick places orders with your hatchery.

Time needed: 28 days

How to take part in the partner network

  1. Get registered as a vendor on GroSpace

    Vendor Membership

  2. Learn to sell on GroSpace

    How to sell on the GroSpace platform?

  3. List a product

    You can list day old chicks on your GroSite you can peruse the example below for assistance
    e.g. GroChick – Day old chicks

  4. Receive an order for day-old chicks

    Grochick and other vendors in the partner network will purchase day-old chicks from your GroSite – ensuring that your incubators are running at full capacity 24/7.

  5. Order fertile broiler eggs

    Go to GroChick and make a purchase of fertile eggs for the number of fertile eggs required to fulfil the orders that you received.

  6. Receive the 1st-grade fertile chicken eggs

    Wait for 1 day to allow the albumin in the fertile chicken eggs to settle then place the eggs into your setter trays

  7. Notification on day 18

    Prepare your packaging boxes on day 18. Contact GroChick to notify that the chicks will be ready in 3-4 days. If you are managing your own delivery then notify your drivers on GroSpace

  8. Hatch day and delivery

    On day 22 load 102 chicks into the packaging boxes and print your waybill. Make sure that every order has a waybill for tracking purposes. Even if the order is being collected from your hatchery you need to make sure that the customer sees the waybill. If one of our drivers in the partner network picks up the package make sure to verify the identity of the driver by doing an ID check either on their ID book or on their Drivers license. Security first.

  9. Order Status

    At the point of collection and/or delivery make sure to change the order status to complete for funds to be transferred from escrow to your wallet. If you do not change the order status then the funds will remain in escrow until you take the time to complete the order. Some vendors prefer to complete their orders weekly in bulk, others immediately after each transaction. Either option is acceptable. Allow this function to slot into your sales flow.

  10. Withdrawal

    Withdraw funds to your bank account or keep a portion of the funds in your GroBank wallet. Your wallet allows you to store funds in a secure digital form on the GroSpace platform. Use the funds to order products and services on the market. Remember that there is a withdrawal fee. Consider your future purchases when you get paid and note that this is a business wallet which means any withdrawals will look like taxable gains to the taxman. If you purchase livestock the purchase is VAT zero-rated. Keep your purchases and sales on the platform and only withdraw capital gains when you want to declare tax on them.

  11. Growth and expansion

    Purchase fertile eggs and or incubators to grow your business and expand your hatchery for larger contracts and higher profits.

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Join the partner network to earn – Join Grospace

GroSpace - Get paid to write online

Start writing interesting articles for GroSpace

Take a look at this example for Potch Koekoek chickens  

If you are interested in Potch koekoek chickens and your fluffy little friends are costing you money to feed – consider writing interesting posts around your little friends, promoting products that you sell and sharing your knowledge.