It has become necessary to increase the wholesale price of our milk and cream products because of higher costs. The current price of our Chocolate Milk will remain unchanged. We have seen a 30% increase for raw milk, reflecting the increased production costs for our farmers. This has eroded our narrow profit margin. In the last 8 months we have gone from netting 10% to barely breaking even. We wish this were not the case, but it is.
After 3 ½ years of solid growth and your support in the marketplace, we still cannot get banks to loan us money for further capital improvements. We struggle with an old inefficient carton filler and want very much to begin yogurt production. Replacing the existing filler and beginning yogurt operations will each cost about $100,000. This price increase will help us begin saving for major capital expenditures which we need to continue serving our community better while continuing to grow our local sustainable business.
We also need to better compensate our employees and provide a fair benefit plan as well as keep our facility in good working order. Snowville is committed to advocacy in areas of environmental protection, social justice, sustainable farming, and better agricultural policy in Ohio and in Washington DC. We are spending evermore time and effort on Fracking regulation.
We truly appreciate your continued support of Snowville Creamery. We beg your understanding of our need for this latest price increase and hope that you are confident we are continuing to use and invest your food dollars responsibly and well. As always, we welcome your questions and comments.
Warren and Victoria, and the entire Snowville Team