Notice Of Fee Schedule Changes Effective Feb 1, 2020
To All Valued Customers Of Innovative Foods:
Tami and I and our entire crew very much appreciate your patronage with our business. We are thankful to have the opportunity to provide you with the highest available quality in products and services for meat products. Moreover, we look forward to expanding the quantity and quality of services and products we can provide and offer to all our varied customers in the near future.
After a 12 year Anniversary in 2019, it has finally become necessary for us to increase our processing rates in most areas in order to continue to provide the quality of service and packaging for all our varied customers. Trust that we don’t take this lightly, and it represents the first processing fee schedule change nearly three years.
Out of necessity, due to increased operating costs including; labor, sanitation services, packaging materials and equipment, equipment and facility improvements and maintenance, utilities, insurance and general overhead expense, the fee schedule changes represent an approximately 8% increase. We have attempted to delay this implementation for most of 2019, but overall cost increases for operations and revenue stream loss have necessitated this change.
In May of 2019, we finally lost all our hide and pelt revenue due to global demand, as did the rest of the small plants in the country as prices dropped steadily to zero. Some small plants are now having to compost them or pay to have them hauled to rendering or landfill. At one time, our beef hides commanded as much as $44/head, a significant revenue source in our operations. Sadly, that has disappeared and is a big portion of the need to increase the cost of our services.
Your understanding is appreciated and we thank you for the opportunity to continue to provide the best meat processing services available.
A new fee schedule is posted and copies available for your review effective February 1, 2020. Please don’t hesitate to contact us should you require a more detailed explanation or have questions regarding the changes.
Dave & Tami Ellicott, Innovative Foods